MODERATING EFFECT OF BOARD OWNERSHIP ON THE RELATIONSHIP BETWEEN INFORMATION ASYMMETRY AND SHARE PRICES OF LISTED FINANCIAL SERVICE FIRMS IN NIGERIA

This study examined the moderating influence of board ownership on the relationship between information asymmetry and share prices among listed financial service firms in Nigeria. Utilizing a correlational research design, the study encompasses 53 financial service firms as of December 31, 2022, employing a census sampling technique to select a sample of 36 firms. Over an 11-year period (2012–2022), data were collected from annual reports and accounts using the secondary method. The study was anchored on signalling theory. The analysis was conducted with aid of STATA version 14 statistical software using descriptive and inferential methods. The regression findings underscore a significant negative impact of information asymmetry on share prices, emphasizing the imperative of addressing information imbalances in the market. Moreover, the study highlights the pivotal moderating role of board ownership, affirmatively influencing the relationship between information asymmetry and share prices. Board members' financial stakes in the financial service firms emerge as a monitoring mechanism, fostering corporate governance and aligning interests with shareholders. Based on the findings, the study recommends that to ensure successful financial management, it is crucial to adopt a comprehensive and transparent approach. This entails providing detailed and easily understandable financial information to all stakeholders. Additionally, maintaining regular and effective communication with investors is essential for building trust and keeping them informed about the company's financial position. Encouraging board members to have personal financial stakes in the company aligns their interests with those of shareholders, promotes active engagement in decisionmaking, and enhances overall corporate governance. The study also recommends organizations foster board ownership, as it positively moderates the impact of information asymmetry on share prices.