Following the Berle-Means thesis ( 1932) which implies that diffuse ownership
adversely affects finn pe1jonnance, diverse researches have been carried out to obtain
an empirical evidence to support or nullify their position. This work, seeks to find out
whether the ownership structure of Nigerian finns results in systematic variations in
their pe1jormance. For the purpose of this study, ownership structure was classified as
inside or managerial ownership and outside ownership (those who are not directly
involved in management). The objective of the study is to ascertain the influence of each
of the classification onfirm 's pe1jonnance. The hypotheses were tested using datafor
20 Nigerian firms listed on the NSE. Empirical findings suggest that whereas a high
level of inside ownership negatively but significantly relates to higher firms'
performance, outside ownership was found to be positively and significantly related to
firm performanc
