Effects of corporate governance mechanisms on intellectual capital disclosure of listed firm in Nigeria

Intellectual capital (IC) is widely recognized as a critical driver of competitive advantage, innovation, and value creation in modern organizations. However, effective disclosure of IC remains a challenge, particularly in emerging economies like Nigeria, where corporate governance mechanisms play a pivotal role in enhancing transparency. This study examines how corporate governance influences intellectual capital disclosure (ICD) among listed firms in Nigeria. Specifically, it addresses the unexplored area of constructing a comprehensive Nigerian Corporate Governance Code, comprising sub-indices for board structure, board procedures, and ownership structure utilizing empirically established models. The study's objectives are; to determine the effect of board structure on intellectual capital of listed firms in Nigeria, to examine the effect of board procedures on intellectual capital disclosure of listed firms in Nigeria, to examine the effect of board committees on intellectual capital disclosure of listed firms in Nigeria, to examine the effect of ownership structure on intellectual capital disclosure of listed firms in Nigeria and to determine the effect of firm’s disclosure practices on intellectual capital disclosure of listed firms in Nigeria. Employing a sample of 126 listed firms in Nigeria from 2012 to 2021, the study adopts the generalized method of moments (GMM) to address potential endogeneity and ensure robust estimation. Findings reveal that the corporate governance variable of ownership structure emerges as the strongest predictor of ICD. Supplementary analyses affirm the robustness of these findings. The study contributes to the literature by providing one of the earliest empirical validations of the corporate governance index's influence on ICD in Nigeria and highlights the critical role of comprehensive corporate governance frameworks in promoting transparency, accountability, and firm performance. Grounded in agency theory, the research underscores the theoretical importance of aligning managerial and shareholder interests to enhance ICD practices