INTANGIBLE ASSETS RECOGNITION AND FIRM VALUE OF LISTED COMPANIES IN NIGERIA

ABSTRACT

This study analyzed the impact of disclosure practices on the firm value of Nigerian listed companies, with specific objectives focusing on intellectual property disclosure, accounting disclosure of computer software costs, and recognizing and valuing goodwill. The research employs a quantitative methodology, using a correlational research design to investigate these relationships. The population of the study consists of all listed companies in Nigeria, from which a sample of 45 firms was selected using a purposive sampling technique. Data was collected from the financial statements of these firms and analyzed using descriptive statistics, correlation analysis, and regression analysis. The findings reveal a significant negative correlation between intellectual property disclosure and firm value, indicating that higher levels of such disclosure are associated with lower firm values due to increased scrutiny and perceived costs by investors. Conversely, there is a significant positive correlation between recognizing and valuing goodwill and firm value, reflecting investor confidence in firms with transparent and reliable goodwill reporting practices. The study found no significant relationship between the accounting disclosure of computer software costs and firm value, suggesting that this factor might not be as influential in the Nigerian market context. Based on these findings, the study recommends optimizing intellectual property disclosure practices to balance transparency with investor concerns, enhancing the accuracy and consistency of goodwill recognition, maintaining transparency in software cost disclosures, and engaging with investors to educate them on the importance of various disclosures. Implementing these recommendations could improve the firm value of listed companies in Nigeria by fostering transparency, reliability, and investor confidence in financial reporting.