Information Asymmetry as a Moderator of Intellectual Capital Disclosure and Market Valuation

This study investigates the effect of intellectual capital disclosure (ICD) on market valuation (MV) and the moderating role of information asymmetry (IA) among publicly listed firms in Nigeria. Using a balanced panel of 152 firms over the period 2015–2024 (1,520 firm-year observations), the study employs pooled OLS, fixed effects, and random effects models, with the random effects estimator selected based on the Hausman test. The results show that ICD has a positive and statistically significant impact on market valuation, indicating that investors reward firms that provide greater transparency regarding their intangible resources. In contrast, information asymmetry exerts a significant negative effect on market valuation. Importantly, the interaction between ICD and IA is negative and significant, revealing that information asymmetry weakens the valuation benefits of intellectual capital disclosure. Robustness and post-estimation diagnostics confirm the reliability of the findings. The study concludes that while intellectual capital disclosure enhances firm value, its effectiveness is conditional on a transparent information environment.