Abstract

This study aims to explain the relationship between managerial ownership and information asymmetry for a sample of banks listed on the Iraqi Stock Exchange and the extent to which this is reflected in investors’ decisions using quantitative data for the period (2016-2021). The sample included (8) banks and the number of observations amounted to (48) observations (company/year). The indicator of ownership percentage of members of the Board of Directors was used to measure managerial ownership as an independent variable, and the stock price volatility index was used to measure information asymmetry as an intermediate variable. Investors’ decisions are measured as dependent variables. Using the trading volume of stocks, the data were analyzed using SPSS statistical program (SPSS). The results of our research conclude that there is a direct effect of the managerial ownership variable in reducing information asymmetry, managerial ownership has an inverse effect on investors’ decisions, and information asymmetry has an inverse effect on investors’ decisions. The managerial ownership variable also has an impact on investors' decisions through partial mediation of the information asymmetry variable. We conclude that information asymmetry can have an adverse effect on investors’ decisions on the one hand, and it may be positive through interest in the administrative ownership of companies by investors before making their investment decisions, which leads to increased opportunities for growth and investment in the private sector .The researchers recommended the need to conduct more studies that address the use of other indicators by applying them to the same sector or using the same indicators by applying them to other sectors and comparing the results.