Non-Mandatory Information Disclosures and Shareholders Wealth Maximization of Listed Consumer Goods Firms in Nigeria (Published)
The provision of mandatory and non-mandatory information in financial statements support transparency, informed decision making and market confidence. Disclosure of only mandatory information may not give a wholistic measurement of firms’ value thus hampering the complete measurement of shareholders ‘wealth. The main objective of this study therefore was to examine the effect of non-mandatory information disclosures on shareholders’ wealth maximization of consumer goods firms listed on the floor of the Nigerian Exchange Group from 2013 to 2024. The research design adopted for the study was ex post facto, secondary data were employed and purposive sampling technique was adopted to select 16 out of 21 listed consumer goods firms in Nigeria. The method of data analysis employed for the study Generalized Method of Moment regression and the statistical package employed was STATA 16. The findings of the study revealed that human capital disclosure has a significant negative effect on market value added; risk management disclosure positively and significantly affects market value added while corporate governance disclosure does not have a significant effect on market value added of the listed consumer goods firms in Nigeria. It was thus concluded that non-mandatory information disclosures have a significant effect on shareholders’ wealth maximization of listed consumer good firms in Nigeria. It was therefore recommended among others that policymakers and regulators should develop guidelines that help firms disclose relevant human capital information without overwhelming investors with potentially alarming details about costs. Corporate managers and directors should ensure that strategy and mission statements are clear, specific, and aligned with attainable plans.
Keywords: : Human Capital, Non-mandatory information, Risk Management, Shareholders Wealth, market value added