VALUE RELEVANCE OF INTELLECTUAL CAPITAL DISCLOSURE OF CONSUMER GOODS FIRMS IN NIGERIA
Separation of a firm’s ownership and management and the resulting information asymmetry have led to investors and shareholders needing value-relevant information about factors influencing the economic development and success of a company. This study examined the value relevance of intellectual capi...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Kwara State University, Malete Nigeria
2024-10-01
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| Series: | Malete Journal of Accounting and Finance |
| Subjects: | |
| Online Access: | https://majaf.com.ng/index.php/majaf/article/view/135 |
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| Summary: | Separation of a firm’s ownership and management and the resulting information asymmetry have
led to investors and shareholders needing value-relevant information about factors influencing the
economic development and success of a company. This study examined the value relevance of
intellectual capital disclosure of the listed consumer goods firms in Nigeria. Data were collected
from one hundred and seventy financial years (seventeen firms in Nigeria from 2013-2022) out of
twenty-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 the
variables. Similarly, the study employed Robust Ordinary Least Square regressions to test the
study hypotheses using STATA software. The regression results revealed that human capital
disclosure, structural capital disclosure and the overall intellectual capital disclosure have
significant positive impact on firm value measured by share price. The result however, showed
that relational capital disclosure is not value relevant for the firms. This study therefore concludes
that intellectual capital disclosure is value relevant for the firms and recommends that firms in
consumers goods sector should provide more information on intellectual capital voluntarily since
it is value relevant for decision making, which will ultimately lead to competitive advantage and
future cash flows.
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| ISSN: | 2735-9603 |