Firm-Specific Determinant of Intellectual Capital Disclosure of Listed Financial Service Firms in Nigeria

Abstract

Despite the growing importance of intangible assets in the global knowledge economy, intellectual capital disclosure (ICD) among Nigerian banks remains patchy, limiting stakeholders’ ability to make informed decisions and undermining market efficiency. This study investigates the firm-specific determinants of ICD by focusing on listed Nigerian banks over the period 2013–2022, with the primary aim of understanding how organizational attributes shape disclosure practices. Drawing on a purposive sample of twelve banks from the Nigerian Exchange Group, the research employs a robust ex post facto design and leverages content analysis to quantify ICD from annual reports, while Ordinary Least Squares (OLS) regression is utilized to estimate the effects of the independent variables. The findings reveal that firm size and performance (ROA) significantly enhance ICD, reflecting the tendency of larger and more profitable banks to be more transparent, while firm age exhibits a negative effect, suggesting that older banks may be more conservative or resistant to contemporary reporting standards. Leverage, meanwhile, is found to be statistically insignificant in influencing disclosure. These results highlight the heterogeneous impact of organizational characteristics on ICD and demonstrate that regulatory strategies and managerial actions should be sensitive to firm size, performance, and generational dynamics. The study concludes that a one-size-fits-all approach to disclosure regulation may be ineffective, advocating instead for targeted policies and managerial efforts that encourage broader and more meaningful ICD, particularly among smaller and older banks. By addressing an underexplored context with a rigorous methodological approach, this research not only advances the literature on intellectual capital reporting but also delivers actionable insights for regulators, managers, investors, and policy makers navigating the evolving landscape of corporate transparency. The originality of this paper lies in its integration of regional context, contemporary theoretical perspectives, and empirically grounded recommendations for practice and policy in an emerging market setting.