BOARD DIVERSITY AND INTELLECTUAL CAPITAL DISCLOSURE IN LISTED FIRMS IN NIGERIA: THE MODERATING ROLE OF OWNERSHIP CONCENTRATION

Abstract

This study examines the moderating role of ownership concentration on the relationship between board diversity and intellectual capital of forty-four listed non-financial services firms in Nigeria during the period of ten years from 2011-2020. The descriptive statistics tool was used to obtain summary statistics for the variables in the study. Similarly, random effects regressions with generalised least square (GLS) were employed to assess the study's hypotheses. The finding of the study revealed that board education had a significant impact on ICD.. In addition, board nationality was discovered to have a significant negative impact on ICD. The study indicated, however, that board ownership has no effect on ICD. The findings from the moderated model revealed that board education and board ownership have significant negative impact on ICD. The finding also revealed that ownership concentration increased the negative impact of board education and board ownership on intellectual capital disclosure. The study recommends that board education background should be given top priority in order to ensure quality decision concerning IC. Likewise, in order to ensure quality decision making, foreign members on the board should attend meeting regularly. Also, there should be regulation as to the percentage of shares held by directors. Finally, management should consider the multiple role of the concentrated ownership and board diversity when constituting the board. This will enable the management to carefully select, nominate, and appoint members of the board with great diversity.