HUMAN CAPITAL DISCLOSURE QUALITY, FIRM'S MARKET VALUE AND THE MODERATING EFFECT OF INTEGRATED REPORTING. A STUDY OF LISTED FIRMS IN NIGERIA.

Abstract

This study examined the effects of human capital disclosure quality on the market value of Nigerian non-financial listed firms, with particular focus on the moderating role of integrated reporting quality. Using a balanced panel of 24 firms over seven years (2018–2024), and employing fixed-effects regression models informed by the Hausman specification test, the study finds that higher-quality human capital disclosures are positively associated with firm value. Integrated reporting quality also exhibits a direct positive effect and significantly strengthens the relationship between human capital disclosure and firm value, confirming its moderating role. Control variables, including firm size and leverage, behave as expected. The findings are consistent with Signalling theory and the information complementarity perspective, suggesting that the content and quality of disclosures jointly influence market perceptions. The study contributes to the literature by demonstrating that integrated reporting enhances the market impact of human capital disclosure and offers implications for managers, regulators, and investors seeking to understand the valuation effects of non-financial reporting in emerging markets.

Keywords: Firm value, Human capital disclosure, Integrated reporting quality