INTELLECTUAL CAPITAL DISCLOSURE AND THE VALUE OF LISTED FINANCIAL SERVICES COMPANIES IN NIGERIA

Abstract

This study examined the effect of intellectual capital disclosure on the value of listed financial services companies in Nigeria. Specifically, the study assessed the individual effects of human capital disclosure, structural capital disclosure, and relational capital disclosure on the value of listed financial services companies in Nigeria. This study adopted an ex post facto research design. The population of this study consisted of 37 out of 52 financial services companies quoted on the Nigerian Exchange Limited (NGX) as at December 31^st, 2023. Data were collected from the published annual financial statements of the sampled companies for a period of ten years (2014-2023). The study used Tobin’s Q to measure firm value, while intellectual capital disclosure was proxied using human capital disclosure, structural capital disclosure, and relational capital disclosure. The multiple regression analysis technique was used to test the hypotheses. The result based on the overall explanatory power, revealed that 61.50% of the changes in the value of the financial services companies in Nigeria can be attributed to changes in intellectual capital disclosure. Based on the individual explanatory variables, the result of the random effect model revealed that human capital disclosure has a positive and significant effect while structural capital disclosure has a negative and significant effect, future more, relational capital disclosure has a positive but insignificant effect on the value of quoted financial services companies in Nigeria. The study concluded that intellectual capital disclosure is an important factor needed for improving the value of companies in the financial sector. From the findings and conclusion, the study recommended that investments should be made in the three areas of intellectual capital disclosure, especially in the aspect of human capital disclosure.