Effect of monitoring mechanism on intellectual capital disclosures of listed industrial goods firms in Nigeria

Abstract

The study is about assessing the effect of monitoring determinants on intellectual capital disclosures of listed industrial goods companies in Nigeria. The study used longitudinal research design, using secondary data collected from the annual financial statement of listed industrial companies in Nigeria for a ten-year period from 2011 to 2020. The study population is the 13 listed industrial companies, the same number of companies also serve as the sample size of the study. Data collected were analyzed using the multiple linear regressions, and certain other robust diagnostic tests such as normality, heteroskedasticity, multicollinearity were
conducted. The study made use of content analysis of items indicating intellectual capital disclosure as the dependent variable and the independent variables for the study are board independence, board gender diversity, board financial expertise, board size, audit committee independence, audit committee financial expertise, audit committee size, and auditor type. The findings of the study showed that board size, board gender diversity, board financial expertise, audit committee independence, and auditor type reported negative insignificant effect on intellectual capital disclosures, board independence and audit committee financial expertise reported positive significant effect on intellectual capital disclosures\ while audit committee size reported a positive but insignificant effect on intellectual capital disclosures of the sampled firms. It is therefore, recommended that more priority and emphasis be given to board independence and audit financial expertise, and audit committee size be mixed with the required competence in the industrial goods firms in Nigeria.