Value Relevance of Intellectual Capital Disclosure of Consumer Goods Firms in Nigeria
Year: 2024
Type: article
Abstract: Separation of a firm’s ownership and management and the resulting information asymmetry haveled to investors and shareholders needing value-relevant information about factors influencing theeconomic development and success of a company. This study examined the value relevance ofintellectual capital disclosure of the listed consumer goods firms in Nigeria. Data were collectedfrom one hundred and seventy financial years (seventeen firms in Nigeria from 2013-2022) out oftwenty-one firms to test the value relevance of intellectual capital disclosure of firms in Nigeria.The study analysed the data by means of descriptive statistics to provide summary statistics for thevariables. Similarly, the study employed Robust Ordinary Least Square regressions to test thestudy hypotheses using STATA software. The regression results revealed that human capitaldisclosure, structural capital disclosure and the overall intellectual capital disclosure havesignificant positive impact on firm value measured by share price. The result however, showedthat relational capital disclosure is not value relevant for the firms. This study therefore concludesthat intellectual capital disclosure is value relevant for the firms and recommends that firms inconsumers goods sector should provide more information on intellectual capital voluntarily sinceit is value relevant for decision making, which will ultimately lead to competitive advantage andfuture cash flows.
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7015986230
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