Non-Financial Information Reporting and Firm Performance: Evidence from Listed Consumer Goods Firms in Nigeria
Keywords:
Non-Financial Information, Financial Performance, Human Capital Efficiency, Ordinary Least Square Regression
Abstract
The study examined the effect of non-financial information on financial performance of listed consumer goods companies in Nigeria. Based on Ex-post facto research design, panel data was collected from seventeen (17) listed consumer goods companies within a nine-year period spanning from 2010 to 2018 financial year. The dependent variable of financial performance is proxied by return on total asset while the independent variable of non-financial performance of human capital efficiency together with two control variables; firm listing age and firm size were employed in specifying the econometric model of the study. Ordinary least square regression analyses technique is used to analyse the data and the results revealed that human capital efficiency has a significant effect on firm financial performance during the period under review. However, in line with the result obtained, we recommend that managers should focus on policies geared towards employee training, development and overall motivation of employees noting that such actions will spur up employees to maximize their potentials for increased returns.
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39. Venkatraman, N., & Ramanujam, V. (1986). Measurement of business performance in strategy research: A comparison of approaches. Academy of management review, 11(4), 801-814.
40. Wang, J., Fu, G., & Luo, C. (2013). Accounting information and stock price reaction of listed companies—empirical evidence from 60 listed companies in Shanghai Stock Exchange. Journal of Business & Management, 2(2), 11-21.
41. Xu, X. L., Chen, H. H., & Zhang, R. R. (2020). The impact of intellectual capital efficiency on corporate sustainable growth-evidence from smart agriculture in China. Agriculture, 10(6), 199.
42. Yusuf, F. (2016). The impact of political connectedness on corporate governance disclosure: empirical evidence from Pakistan (Doctoral dissertation, The Open University).
43. Zeghal, D., & Maaloul, A. (2010). Analyzing value added as an indicator of intellectual capital and its consequences on company performance. Journal of Intellectual capital. 1(2), 206-212.
2. Adedeji, T. O., & Oboh, C. S. (2012). An empirical analysis of tax leakages and economic growth in Nigeria. European Journal of Economics, Finance and Administrative Sciences 48(1), 42-52
3. Atseye, F. A., Mboto, H. W., & Lawal, S. G. (2020). Lease Financing and Profitability: Evidence from Nigerian Quoted Conglomerates. International Journal of Economics and Financial Issues, 10(1), 132.
4. Calmès, C., & Théoret, R. (2010). The impact of off-balance-sheet activities on banks returns: An application of the ARCH-M to Canadian data. Journal of Banking & Finance, 34(7), 1719-1728.
5. Casu, B., & Girardone, C. (2005). An analysis of the relevance of off-balance sheet items in explaining productivity change in European banking. Applied Financial Economics, 15(15), 1053-1061.
6. Chu, S. K. W., Chan, K. H., Yu, K. Y., Ng, H. T., & Wong, W. K. (2011). An empirical study of the impact of intellectual capital on business performance. Journal of Information & Knowledge Management, 10(01), 11-21.
7. Collis, D. J., & Montgomery, C. A. (1995). Competing on Resources: Strategy in the 1990s. Knowledge and strategy, 73(4), 25-40.
8. Doucouliagos, C. (1997). The aggregate demand for labour in Australia: a meta‐analysis. Australian Economic Papers, 36(69), 224-242.
9. Garavan, T. N., Morley, M., Gunnigle, P., & Collins, E. (2001). Human capital accumulation: the role of human resource development. Journal of European industrial training. 3(5), 443-457
10. Ge, W. (2006). Off-balance-sheet activities, earnings persistence and stock prices: Evidence from operating leases. AAA.
11. Ghosh, S., & Mondal, A. (2009). Indian software and pharmaceutical sector IC and financial performance. Journal of intellectual capital. 10(6), 199.
12. Goetz, S. J., & Hu, D. (1996). Economic growth and human capital accumulation: Simultaneity and expanded convergence tests. Economics Letters, 51(3), 355-362.
13. Gray, R., Kouhy, R., & Lavers, S. (1995). Constructing a research database of social and environmental reporting by UK companies. Accounting, Auditing & Accountability Journal, 9(2), 219-242
14. Hamann, P. M., Schiemann, F., Bellora, L., & Guenther, T. W. (2013). Exploring the dimensions of organizational performance: A construct validity study. Organizational Research Methods, 16(1), 67-87.
15. Hassan, O. A., Giorgioni, G., Romilly, P., & Power, D. M. (2011). Voluntary disclosure and risk in an emerging market. Journal of Accounting in Emerging Economies. 10(01), 11-21.
16. Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of accounting and economics, 31(1-3), 405-440.
17. Iles, P., Mabey, C., & Robertson, I. (1990). HRM practices and employee commitment: Possibilities, pitfalls and paradoxes. British Journal of Management, 1(3), 147-157.
18. Ismail, R., Rahman, R. A., & Ahmad, N. (2013). Risk management disclosure in Malaysian Islamic financial institutions: pre-and post-financial crisis. Journal of Applied Business Research (JABR), 29(2), 419-432.
19. Liao, S. H., Wu, C. C., Hu, D. C., & Tsuei, G. A. (2009). Knowledge acquisition, absorptive capacity, and innovation capability: an empirical study of Taiwan’s knowledge-intensive industries. technology, 11(53), 160-167.
20. Maroun, W. (2017). Assuring the integrated report: Insights and recommendations from auditors and preparers. The British Accounting Review, 49(3), 329-346.
21. Maxwell, J., Smith, D., & Brewster, M. (2010). Finding a sustainable edge: Putting nonfinancial data to work for strategic growth. Price Waterhouse Coopers, 1-8.
22. Meyer, C., & Schwager, A. (2007). Understanding customer experience. Harvard business review, 85(2), 116.
23. Mohammed, L. (2018). Related party transactions, off balance sheet items and earnings quality of listed deposit money banks in Nigeria. Malaysian Management Journal (22), 19-34
24. Muhammad, N. M. N., & Ismail, M. K. A. (2009). Intellectual capital efficiency and firm’s performance: Study on Malaysian financial sectors. International journal of economics and finance, 1(2), 206-212.
25. Nahiba, M. (2017). Non-Financial Disclosures and Performance of Manufacturing Companies in India. Journal of Empirical Literature, 7(9), 21-29.
26. Nzewi, H. N., Robert, E. I., Ifechi, A. N., Monene, C. P., & Martin, O. (2019). Intellectual capital and competitive advantage of selected commercial banks in Anambra State. International Journal of Managerial Studies and Research, 6(5), 27-36.
27. Okeke, R. (2015). Human capital accounting: A literature review. Accounting, 2(1), 1-10.
28. Okoye, A. (2016). Legal approaches and corporate social responsibility: towards a Llewellyn’s law-jobs approach. Taylor & Francis.
29. Parham, S., & Heling, G. W. (2015). The relationship between human capital efficiency and financial performance of Dutch production companies. Research Journal of Finance and Accounting, 6(8), 188-201.
30. Plink, D., & Barning, T. (2010). The ROI of HR strategy is measured after all-practical tools to measure the output of HR. The CRF Institute.
31. Pulić, A. (1998). Measuring the performance of intellectual potential in the knowledge economy. In 19th Annual National Business Conference (p. Disk).
32. Pulic, A. (2000). VAIC: An accounting tool for IC management. International journal of technology management, 20(5-8), 702-714.
33. Pulic, A. (2004). Do we know if we create or destroy value? International Journal of Entrepreneurship and Innovation Management, 4(4), 349-359.
34. Rouf, M. A. (2016). Board diversity and corporate voluntary disclosure (CVD) in the annual reports of Bangladesh. Risk Governance and Control: Financial Markets and Institutions, 6(4), 47-55.
35. Schuster, P., & O'Connell, V. (2006). The trend toward voluntary corporate disclosures. Management Accounting Quarterly, 7(2), 1.
36. Snell, A. F., Sydell, E. J., & Lueke, S. B. (1999). Towards a theory of applicant faking: Integrating studies of deception. Human Resource Management Review, 9(2), 219-242.
37. Sveiby, K. E. (2001). A knowledge‐based theory of the firm to guide in strategy formulation. Journal of intellectual capital. 2(4), 344-358
38. Umoh, G. I., & Waribugo, S. (2016). Capacity planning and corporate productivity performance in the Nigerian Aviation industry. International Journal of Business & Public Administration, 13(1).
39. Venkatraman, N., & Ramanujam, V. (1986). Measurement of business performance in strategy research: A comparison of approaches. Academy of management review, 11(4), 801-814.
40. Wang, J., Fu, G., & Luo, C. (2013). Accounting information and stock price reaction of listed companies—empirical evidence from 60 listed companies in Shanghai Stock Exchange. Journal of Business & Management, 2(2), 11-21.
41. Xu, X. L., Chen, H. H., & Zhang, R. R. (2020). The impact of intellectual capital efficiency on corporate sustainable growth-evidence from smart agriculture in China. Agriculture, 10(6), 199.
42. Yusuf, F. (2016). The impact of political connectedness on corporate governance disclosure: empirical evidence from Pakistan (Doctoral dissertation, The Open University).
43. Zeghal, D., & Maaloul, A. (2010). Analyzing value added as an indicator of intellectual capital and its consequences on company performance. Journal of Intellectual capital. 1(2), 206-212.
Published
2021-08-23
How to Cite
Lawrence, E., & Priscilla, I. (2021). Non-Financial Information Reporting and Firm Performance: Evidence from Listed Consumer Goods Firms in Nigeria. Central Asian Journal of Innovations on Tourism Management and Finance, 2(8), 38-47. https://doi.org/10.47494/cajitmf.v2i8.138
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Copyright (c) 2021 Edeh Lawrence, Ifurueze Priscilla
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