The Impact of Audit Committee Characteristics on Intellectual Capital Disclosure: Evidence from Nigerian Financial Firms

The purpose of this study is to explore the relationship between audit committee characteristics and intellectual capital reporting in Nigerian financial firms. Given the growing significance of intellectual capital in driving corporate competitiveness, this study aims to address the limited understanding of how audit committee size, independence, and gender diversity influence the extent and quality of intellectual capital disclosure. This study adopts a descriptive research design using secondary data obtained from the published audited financial statements of 12 listed financial firms in Nigeria over the period of 2013-2022. The analysis involved the use of pooled ordinary least squares (OLS) regression to examine the effect of audit committee characteristics on the Intellectual Capital Disclosure Index (ICDI). The findings reveal that an increase in audit committee size significantly decreases the ICDI, indicating potential inefficiencies associated with larger committees. Conversely, while audit committee independence shows a positive but insignificant effect on ICDI, gender diversity within the audit committee negatively and insignificantly impacts ICDI. These results suggest that although audit committee characteristics are critical, their influence on intellectual capital reporting is complex and may require further exploration. The originality of this study lies in its focus on the Nigerian context, offering insights into how corporate governance mechanisms affect intellectual capital disclosure in emerging markets. Future research could explore additional audit committee attributes and extend the study to other sectors.