From the result on table 7 above, shows that firm size has a significant positive moderating effect on firm performance measured by ROA with a t-statistic of 3.47 and a p-value of 0.000 (significant at 1% level) which is different from the result obtained in model I where in the direct relationship with ROA, block-holder ownership has an insignificant negative effect. Based on the decision rule, hypothesis four (Ho4) is rejected.
4.4 Discussion of Findings
Result from Table 6 above shows that block-holder ownership has an insignificant negative effect on firm performance with a coefficient of -0.0211, a t-statistic of-1.28 and a p-value of 0.224. This finding implies that if all other variables are held constant, a unit increase in the number of block-holder ownership of Nigerian quoted commercial banks leads to an insignificant reduction in firm performance. This finding disagrees with those of Hussain et al. (2018), Ahmed and Hadi (2017) and Citak (2011) who reported that block-holder ownership has a significant effect on firm performance.
Table 7 above shows that firm size has a significant positive moderating effect on block-holder ownership and firm performance of Nigerian quoted commercial banks with a coefficient of 0.0024, a t-statistic of 3.47 and a p-value of 0.000. This finding disagrees with that in Model I where the direct relationship of block-holder with firm performance revealed an insignificant effect.
6 Conclusion and Recommendations
Block-holder ownership in the Nigerian quoted commercial banks is a factor that reduces firm
performance due largely to the overbearing influence these set of owners could have on the
management because of the large size of their investment. Firm size is a significant moderating
variable when the relationship between block-holder ownership firm performance measured by return on asset. Based on the findings of the study, the following recommendations are made.
i) Block-holder ownership should not be encouraged in the Nigerian commercial banks as the more the block-holder, the less will the performance be leading the negative albeit insignificant effect on firm performance.
ii) Firm size should be employed when the effect of block-holder ownership on firm performance measured by return on asset is be moderated by a third variable as it has a significant moderating effect.
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