Firm Characteristics, Value Efficiency and Intellectual Capital Disclosure of Selected Pharmaceutical Firms Listed in Nigeria

The development of standards (IAS 38) to capture how intangible assets can be measured and reported has increased the need for the study of intellectual capital disclosure and their influencing factors. The objectives of this study are to examine the effect of firm characteristics and value efficiency on Intellectual Capital Disclose (ICD) of selected pharmaceutical firms listed on the Nigerian Stock Exchange for a period of five (5) years ranging from 2009 to 2014. Purposeful random sampling technique is used to select the sample firms. Ordinary least square (OLS) regression is used to analyse the variables. Findings show that firm size, profitability and leverage jointly are significantly related with ICD while VAIC is not significantly related with ICD. Findings also show that firm size and profitability are positively related with ICD while leverage and VAIC are negatively related with ICD. Overall, the results suggest that firm characteristics i.e. firm size and profitability are influencing factors on the level of intellectual capital disclosure.