COMPANIES’ ATTRIBUTES AND VOLUNTARY DISCLOSURE: A PANEL ANALYSIS OF LISTED INDUSTRIAL GOODS COMPANIES IN NIGERIA

Okafor, Victor Ikechukwu and Egiyi, Modesta Amaka
Keywords: Company attributes, voluntary disclosure, dynamic capability theory, and panel analysis.
Clifford University International Journal of Development Studies (CLUIJODS) 2023 3(1), 76 - 96. Published: December 2023

Abstract

The study carried out a panel analysis of companies’ attributes and voluntary disclosure of industrial goods in Nigeria. Using a quantitative research design, the study collected data (ranging from 2011 to 2020) from 11 listed industrial goods companies that were judgmentally sampled out of 13 companies on the Nigerian Exchange Group. The study findings show that; firm size has a positive significant effect on the voluntary disclosure of listed industrial goods companies in Nigeria; while profitability has a positive insignificant effect on the voluntary disclosure of listed industrial goods companies in Nigeria. Further findings show that, leverage has a negative significant effect on the voluntary disclosure of listed industrial goods companies in Nigeria; while liquidity has a negative significant effect on the voluntary disclosure of listed industrial goods companies in Nigeria. Finally, it is found that,firms’ age has a positive significant effect on the voluntary disclosure of listed industrial goods companies in Nigeria. As a result, the study recommends that, the cost burden of voluntary disclosure on the profitability of the companies is a setback for the companies to attain their disclosure demands. Despite profit made by companies, they are lukewarm in engaging in voluntary disclosure due to the cost implication on profit. Thus, government should provide incentive through tax-rebate to companies for voluntary disclosure to offset the negative cost aspect of voluntary disclosure on profitability.