MODERATING EFFECT OF INFORMATION COMMUNICATION TECHNOLOGY SOFTWARE ON THE RELATIONSHIP BETWEEN OWNERSHIP STRUCTURE AND VALUE OF LISTED FINANCIAL FIRMS IN NIGERIA

Abstract

This study explored how investment in Information and Communication Technology (ICT) moderated the relationship between ownership structure and firm value among listed financial firms in Nigeria. Drawing from the Resource-Based View (RBV) and Stakeholder Theory, it examined whether ICT enhanced the strategic roles of different ownership types individual, block institutional, managerial, and foreign ownership. Data from 41 listed financial firms covering the period 2013–2023 were analyzed using panel regression to assess both direct and interaction effects. Findings revealed that individual ownership did not significantly affect firm value on its own, but became significant when moderated by ICT, suggesting that digital tools improved individual investors' access to firm disclosures. Similarly, Institutional ownership had no significant standalone effect but became significant with ICT, indicating enhanced monitoring capabilities through digital platforms. Managerial ownership had a positive but statistically insignificant effect, both directly and when moderated by ICT, implying that existing ICT tools did not sufficiently support managerial accountability or align management interests with firm value. Foreign ownership had a significant positive effect on firm value, but ICT did not significantly moderate this relationship likely due to strong governance practices already embedded in foreign investment frameworks. Importantly, ICT on its own had a strong and positive effect on firm value, underscoring its strategic importance in Nigeria's financial sector. Based on these insights, the study recommended that financial firms adopt mobile-friendly digital platforms to support individual investor engagement. For institutional investors, AI-driven governance and real-time compliance tools should be implemented. ICT systems should also be integrated into executive performance tracking to strengthen managerial accountability. For foreign investors, platforms should be aligned with international standards and offer multilingual support. Overall, sustained investment in robust ICT infrastructure, data analytics, and cybersecurity remained essential to enhancing firm value across Nigeria's financial industry.

Keywords: Individual Shareholding; Institutional Ownership; Managerial Ownership; Foreign Ownership; Firm Value; ICT Investment