European Journal of Accounting, Auditing and Finance Research (EJAAFR)

EA Journals

Human capital disclosure

Effect of Integrated Reporting on Firm’s Value: The Nigeria Manufacturing Sector Experience. (Published)

The main objective of this study was to investigate the effect of integrated reporting on firms’ value drawing samples from listed manufacturing firms in Nigeria between the periods of 2011-2020. In this study, human capital disclosure index, manufacturing capital disclosure index, and social and relationship capital disclosure index were the integrated reporting proxies adopted to evaluate the effect on value of Nigeria manufacturing firms. Firms’ value was measured in terms of Tobin Q, and year price index was adopted as the control variable. Ex post factor research design was used and the study made use of secondary data sourced from the sampled companies’ annual reports and Nigeria Exchange Group Fact book. Data for integrated reporting variables were derived using disclosure checklist developed in accordance with the integrated reporting framework disclosure guidelines. Purposive sampling technique was used to select 51 out of the 59 manufacturing companies listed on the Nigeria Exchange Group. In order to examine the cause-effect relationship between the dependent variable and independent variables as well as to test the formulated hypotheses, the researcher used a robust regression analysis.  The results of the analysis showed that the disclosure of human capital information in the annual report of listed manufacturing firms in Nigeria significantly improves the firm’s value. Based on this findings, it was concluded that only the variable of human capital disclosure has significant effect on firms’ value. Finally, the study recommended that the management of manufacturing firms in Nigeria should capture all disclosure items concerning human capital in their financial statements as this tends to improve the value of the firm and increase shareholders’ wealth. It was also recommended that management should develop an inclusive organizational culture for disclosing non-financial information with long term value creating capacity as they can maximise the market value of the firm over the short, medium and long term horizon.

Keywords: Human capital disclosure, firm’s value, integrated reporting, manufactured capital disclosure, social and relationship capital disclosure


To explore an apparent disparity among human capital information desired by financial analysts and fund managers and actual disclosure of such information in company annual reports in the context of Kurdistan. Current study used content analysis to assess the extent and nature of human capital information actually provided in the annual reports of 100 listed companies in Kurdistan. The results stated that, the human capital information provided in non-uniform, un-quantified and very limited. Many of whom be figureheads with little impact on the way companies are run and in creating value for the firm. Accordingly, analysts have to rely on alternative sources to get their desired information, which is a costly process for private shareholders. The current study contributes to the literature on the demand for, and disclosure of human capital information in the context of Kurdistan.

Keywords: Content analysis, Human capital disclosure, Kurdistan

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