CORPORATE GOVERNANCE AND INTELLECTUAL CAPITAL DISCLOSURE OF QUOTED NON-FINANCIAL FIRMS IN NIGERIA
Abstract
This study examined the relationship between corporate governance variables and the intellectual capital disclosure of quoted non-financial companies in Nigeria. A multiple linear regression analysis was conducted to ascertain whether intellectual capital disclosure is influenced by corporate governance variables like CEO expertise, audit committee expertise, and board remuneration decisions. The study’s sample consists of non-financial quoted companies in the Nigerian Exchange Group (NGX), comprising the consumer goods sector, the industrial goods sector, the health care sector, the conglomerates sector, and the agricultural sector, and data analyzed span 2021 to 2023. The findings that emanated from the study indicated that CEO expertise and board remuneration practices have a positive and significant influence on intellectual capital disclosure, whereas audit committee expertise exhibited a negative relationship with intellectual capital disclosure. Therefore, this study recommends that companies should prioritize and strengthen CEO expertise by hiring CEOs with strong industry knowledge and experience. In addition, firms should align board remuneration practices with intellectual capital disclosure. Additionally, regulatory bodies should consider introducing market incentives and relevant guidelines/standards that encourage companies to disclose intellectual capital information in corporate reports either mandatorily or voluntarily
Keywords:
Corporate Governance, Intellectual Capital Disclosure, CEO Expertise, Board Remuneration, Audit Committee ExpertiseDownloads
Published
DOI:
https://doi.org/10.5281/zenodo.15657156Issue
Section
How to Cite
License
Copyright (c) 2025 Rose Chioma Oghoro, Edirin Jeroh
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
AbdulRahman, S. B., & Abubakar, A. (2023). Impact of intellectual capital on financial performance of listed oil and gas firms in Nigeria. FUDMA Journal of Accounting and Finance Research (FUJAFR), 1(2), 88–101.
Almarayeh, T. (2023). Board gender diversity, board compensation, and firm performance. Evidence from Jordan”. Journal of Financial Reporting and Accounting, 21(3), 673–694.
Alshirah, M. H., Abdul-Rahman, A. & Mustapha, I. R. (2020). Board of directors’ characteristics and corporate risk disclosure: the moderating role of family ownership. Euro Med Journal of Business, 15(2), 219–252.
Amzy, A., Anggreini, D. R., & Hamim, M. (2019). The effect of good corporate governance on company profitability, Re and Property Sector in Indonesia. Journal Akuntansi, 13(1), 18–33.
Baldini, M.A. & Liberatore, G. (2016). Corporate governance and intellectual capital disclosure. Empirical analysis of the Italian companies. Corporate Ownership & Control, 13(2 - 1), 187–201.
Bhasin, L. M. (2012). Measurement and disclosure of intellectual capital: evidence from a developing country. International Journal of Finance and Accounting, 1(5). 82–93.
Bhattacharjee, S.; Chakraborty, S. & Bhattacharjee, S. (2017). Impact of corporate governance attributes on intellectual capital disclosure: Evidence from listed banking companies in Bangladesh. 5th India Finance Conference (IFC) 2015, organized by the Indian Institute of Management (IIM) on 17-19th December, 2015, in Kolkata, India.
Centrafatto, M. (2014). Stewardship theory: Approaches and perspectives. Accountability and Social Accounting for Social and non-profit Organizations, 177–196.
Chen, C., & Hassan, A. (2022). Management gender diversity, executive compensation and firm performance. International Journal of Accounting & Information Management, 30(1), 115-142
Dashbayaz, L.M., Salehi, M., & Mirzaei, A. & Nazaridavaj, H. (2020). The impact of corporate governance and intellectual capital efficiency in Iran. International Journal of Islamic and Middle East, 13(4).
Demaki, G. O., & Jeroh, E. (2016). Financial Reporting Council of Nigeria, IFRS adoption, and the relationship between corporate governance and profitability measures of Nigerian firms. Nigerian Journal of Management Sciences, 5(2), 382-393.
Douglas A. Adu, D.A., Flynn, A. & Gray, C. (2021). Executive compensation and sustainable business practices: The moderating role of sustainability–based compensation. Business strategy and Environment, 31(3), 693–736.
Ebelechukwu, P. and Yakubu, E. C., (2015). Impact of corporate governance on micro-finance banks’ financial performance in North-Central Nigeria. International Journal of Humanitized Social Sciences and Education, 2(1), 153–170.
Endrawes, M.; Feng, Z.; Lu, M. & Shan, Y. (2020). Audit committee characteristics and financial statement comparability, 60(3), 2361–2395.
Faisal, M., Hassan, M., Shahid M, Rizwan M. & Quershi, Z. (2016). Impact of corporate governance on intellectual capital efficiency: Evidence from KSE listed commercial banks. Science International-Lahore, 28(4), 353 - 361
Gan, K., Saleh, Z., Abessi M. & Huang, C.C. (2013). Intellectual capital disclosure in the context of corporate governance. International Journal of Learning and Intellectual Capital 10(1), 52-70.
Gultom, B. J. & Gunawan, I. D. (2020). Intellectual capital disclosure, good corporate governance and firm performance, Asean Cross Country Analysis. European Journal of Business Management 5(5), 1-5. https://doi.org/10.24018/ejbmr.2020.5.5.479.
Haji, A.A. (2015). The role of audit committee attributes in intellectual capital disclosures. Evidence from Malaysia. Managerial Auditing Journal 30(8/9), 756–784.
Jeroh, E. & Efenyumi, P. M. (2022). The Diligence and Independence of Corporate Board Committees and The Quality of Reported Earnings Among Listed Companies In Nigeria. Journal of Academic Research In Economics, 14(3), 501-526.
Keay, A. (2017). Stewardship theory: is board accountability necessary? International Journal of Law and Management 59(6), 1292-1314.
Liu, C., Shi, W., & Wei, K.C. J. (2021). CEO expertise and the design of compensation contracts: Evidence from generalist versus specialist CEOs. Journal of Management Accounting Research, 33(3), 97–119.
Mardini, H. G. & Lahyani, F. E. (2022). Impact of firm performance and corporate governance mechanisms on intellectual capital disclosure in CEO statements. Journal of Intellectual Capital, 23(2), 290–312.
Mishari, A. M. (2018). The role of corporate governance in intellectual capital disclosure. International Journal of Ethics and Systems, 34(1), 101-121.
Muttakin, M.B.; Khan, A. & Belal, A.R. (2015). Intellectual capital disclosure and corporate governance: An empirical examination. Advances in Accounting, 31(2), 219–227.
Ogieh, A.S. & Jeroh, E. (2023). Corporate Governance and Value Relevance of Earnings. Himalayan Journal of Economics and Business Management, 4(1), 279-287;
Ohre, K. A. & Jeroh, E. (2024). Board attributes and the value of corporate entities in Nigeria. Asian Journal of Management and Commerce, 5(1), 05-11
Pathiraja, A. & Dissanayeke, H. & Iddagoda, O.M.A. (2022). Audit committee attributes and firm performance. Economic Insights – Trends and Challenges. Vol. XI, 4(LXXIV), 60 - 75
Rajabalizadeh, J., & Oradi, J. (2022). Managerial ability and intellectual capital disclosure. Asian Review of Accounting, 30(1), 59–76.
Robiyanto, R., Putri, A. R. & Lako, A. (2021). The effects of corporate governance and intellectual capital on the financial performance and value of socially responsible firms. Contaduría y Administración, 66(1), 1-24.
Rodrigues, L.L., Tejedo-Romero, F. & Craig, R. (2017). Corporate governance and intellectual capital reporting in a period of financial crisis: Evidence from Portugal. International Journal of Disclosure and Governance, 14, 1-29. https://doi.org/10.1057/jdg.2015.20.
Salehi, M., Tahervafaei M. & Tarighi, H. (2018). The effect of audit committee and board characteristics on corporate profitability in Iran. Journal of Economic and Administrative Sciences, 34(1), 71-88. https://doi.org/10.1108/JEAS-04-2017-0017.
Sinebe, M. T. & Jeroh, E. (2023). Corporate governance and financial statements fraud: Evidence from listed firms in Nigeria. Asian Journal of Management and Commerce, 4(2), 118-123.
Subramanian, S. (2018). Stewardship theory of corporate governance and value systems: The case of a family-owned business group in India. Indian Journal of Corporate Governance, 11(1), 88-102.
Vitolla, F., Raimo, N., Marrone A. & Rubino, M. (2020): The role of board of directors in intellectual capital disclosure, after the advent of integrated reporting. Corporate Social Responsibility and Environmental Management, 27(5), 2188–2200.
Wicaksono, A. P. N. (2022). Gender diversity, financial expertise, CEO duality and firm performance. Evidence from Indonesian Public listed companies. Journal Ilmiah Bisnis Dan Ekonomi, Asia, 16(1), 1-14.
Widiatmoko, J., Indarti, M. G. K. & Pamungtas, I. D. (2020). Corporate governance in terms of intellectual capital disclosure and market capitalization. Powerful Business Management, 7(1), 1-14. https://doi.org/10.1080/23311975.2020.1750332
