IMPACT OF FIRM INNOVATIVENESS ON ECONOMIC DISCLOSURE AMONG LISTED NON-FINANCIAL COMPANIES IN NIGERIA

Abstract

In today's complex business environment, the role of firm innovativeness has become critical, particularly in enhancing transparency through economic disclosure among listed non- financial companies in Nigeria. This study investigates how factors such as firm complexity, technological infrastructure, research and development (R&D), and managerial efficiency affect economic disclosure practices. The research employs an ex-post facto design, collecting data from 76 non-financial companies listed on the Nigeria Stock Exchange over a twelve-year period (2011-2022). The analysis reveals that R&D significantly enhances economic disclosure, with a positive coefficient of β = 0.137 and a p-value less than 0.001. Conversely, firm complexity is found to negatively impact disclosure levels (β = -0.062, p < 0.001), as does technological infrastructure (β = -0.031, p = 0.044). Managerial efficiency also plays a vital role, contributing positively to economic disclosure (β = 0.017, p = 0.015). Findings indicate that while R&D efforts can improve transparency, increasing complexity and technological advancements may hinder effective communication of economic impacts. The study concludes that non-financial firms must balance their innovative initiatives with the challenges posed by complexity and technology. Based on these insights, the study recommends that firms prioritize R&D investments, actively engage stakeholders to understand their disclosure needs, and conduct regular assessments of their reporting practices.