In theory, the nexus between firm shareholding indicates that distribution of equity among various ownership categories affect firm performance. Whilst ownership structure influences decision making, the effect on firm results is not necessarily positive. Separation between management and ownership can create conflicts between owners and management as envisioned by the Agency theory. The Kenyan case evidences conceptual and contextual gaps. Accordingly, therefore, this study interrogated nexus of ownership structures and returns of corporates, specifically in manufacturing sector of Kenya. This study had four explanatory variables which were used to derive specific aims. These factors are: management ownership, foreign ownership, institutional ownership and individual ownership. In line with the variables, the study was anchored on tenets and postulates of Agency Theory, Stulz’s Integrated Ownership Theory and Stewardship Theory. The main method that was used to obtain inferences was in form of a descriptive design. This study has a population of nine hundred and twenty manufacturing companies. In sampling, ninety firms were used for gathering observations for the variables for a period of eight years. Inferences evidenced that management ownership had a positive and significant effect on firm performance, foreign ownership negatively and insignificantly affected firm performance, institutional ownership positively and significantly affect performance and individual ownership negatively and insignificantly affected returns financially. It was recommended that manufacturing firms should encourage institutional and management ownership in order to increase their financial performance.

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