EFFECT OF MANUFACTURING, HUMAN AND NATURAL CAPITAL DISCLOSURES ON MARKET CAPITALIZATION OF LISTED COMPANIES ON THE NIGERIAN EXCHANGE GROUP
Keywords:
Human Capital, Manufacturing Capital, Market Capitalization, Natural CapitalAbstract
The study was explicitly to determine the effect of manufacturing capital disclosure, human capital disclusore and natural capital disclosure on market capitalization of listed companies on Nigerian Exchange Group. The research design adopted was ex post facto research design. The population of the study was the one hundred and fifty-eight (158) companies listed on the Nigerian Exchange Group as at 31st December 2023. The study used purposive sampling technique to select the sample size of one hundred and sixteen (116) listed companies. The tool used for analysis was ordinary least square regression. The findings showed that manufacturing capital disclosure, human capital disclosure and natural capital disclosures had significant effects on market capitalization of listed companies on Nigerian Exchange Group. The study recommended among others that since manufacturing capital disclosure had a significant effect on market capitalization. Therefore; The NGX and regulatory bodies such as the Financial Reporting Council of Nigeria should require listed manufacturing firms to adopt standardized and detailed disclosure frameworks for manufacturing capital. This could include reporting on plant capacity, equipment upgrades, production efficiency, technology adoption, and sustainability practices in manufacturing. Such transparency will help investors better assess operational strength and growth potential, leading to more accurate company valuations. The study recommended among others that hence human capital disclosure had a significant effect on market capitalization; the policymakers should encourage initiatives that enhance employees’ development, diversity, inclusion and disclose information about their human capital practices. Since the finding showed that natural capital disclosure had significant effect on market capitalization, the study recommended that the NGX, in collaboration with the Financial Reporting Council of Nigeria and environmental agencies, should mandate comprehensive and standardized natural capital disclosures. This should cover resource use efficiency, biodiversity protection, waste management, carbon emissions, and climate risk mitigation. Such transparency will help investors factor environmental performance into company valuations, boosting market confidence and capitalization.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 International Review of Financial Studies
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Articles submitted to IROFS should not have been published or are currently under review by another Journal. Kindly see the guide for the preparation of the manuscript for details. Successful submission of articles by author(s) for publication clearly implies that the work is not an infringement of any existing copyright warranty as IROFS reserves the right to be indemnified by the author(s) where any breach of such warranty is proven. For ease of dissemination and to ensure proper policing of use, papers and contributions become the legal copyright of IROFS once published unless otherwise agreed.
Permission clearance should be obtained by the author(s) where applicable for the use of any content of interest not originally created by them. This must be done before the submission of the article to IROFS. Failure to do so may lead to a lengthy delay in publication, as IROFS is unable to publish any article which has permissions pending. Thus, the rights IROFS requires are:
- Non-exclusive right to reproduce the material in the article or book chapters.
- Print and electronic rights.
- To use the material for the life of the work (for instance, there should be no time restrictions on the re-use of material).
Where tables, figures or excerpts of more than 250 words are reproduced from another source, it is expected that:
- Author(s) should obtain the necessary written permission in advance from any third-party owner of the copyright for the use in print and electronic formats of any of their text, illustrations, graphics, or other material in their manuscript. Permission must also be cleared for any minor adaptations of any work not originally created by the author(s). The author (s) should not assume that any content freely available on the web is free to use.
- Where the author adapts a significant number of any material, the author(s) must inform the copyright holder of the original work.
- Author obtains any proof of consent statements
- The author must acknowledge figure(s) and content adopted or adapted in work utilizing source(s) and further capture them in the list of references.
