This study examines the relationship between human capital disclosure (HCD) and the financial performance of listed non-financial firms in Nigeria from 2010 to 2024. Grounded in stakeholder theory and resource-based view theory, the study argues that transparent disclosure of human capital investments signals managerial commitment, enhances reputation, and reduces information asymmetry, thereby improving financial outcomes. Using an ex-post facto research design, a sample of 148 firms was analyzed using panel regression techniques. The key independent variable, HCD, was measured via a content analysis index. Control variables included firm size, profitability, leverage, growth opportunities, age, and liquidity. The findings reveal a positive and statistically significant relationship between HCD and firm performance (proxied by Return on Assets). This relationship holds after controlling for other determinants of performance. The study concludes that comprehensive HCD is not merely a discretionary social responsibility activity but a strategic tool that can enhance corporate valuation and stakeholder confidence in the Nigerian capital market. We recommend that regulatory bodies in Nigeria, such as the Financial Reporting Council of Nigeria (FRCN), consider developing more explicit guidelines on human capital disclosure to improve reporting quality and comparability.
Onipe Adabenege Yahaya (Fri,) studied this question.
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