Value Relevance of Intangible Assets Disclosure in Listed Deposit Money Banks in Nigeria

Abstract

This study examines the value relevance of intangible assets disclosure of listed deposit money banks in Nigeria. The population of the study constitutes of all the fourteen listed deposit money banks (14) in Nigeria out of which a sample of thirteen (13) banks were drawn. Descriptive research design was adopted. Secondary data from annual reports and accounts of the listed deposit money banks in Nigeria for the period of 2015 to 2024 were used. Intangible assets disclosure was used as independent variables. Value relevant was used as dependent variables proxied by earnings per share, book value per share and market value added. The study revealed that intangible assets disclosure had a positive but insignificant effect on earnings per share, indicating that greater disclosure does not significantly enhance short-term profitability among Nigerian banks. Similarly, the findings of the study showed that intangible assets disclosure had a positive and highly significant effect on market value added, meaning greater transparency enhances investor confidence and boosts bank valuation, and finally the study revealed that intangible assets disclosure had a positive and significant effect on book value per share, indicating that greater transparency boosts equity value and investor confidence. The summary of the findings indicate that intangible assets have limited influence on short term performance indicators such as earnings but have strong positive impacts on both book and market values; thus, intangible assets are value relevant to investors and essential for long term firm valuation The study recommends that Nigerian banks should reinforce the level and the consistency of intangible assets disclosure to enhance investor understanding and to actualize long-term profitability. Furthermore, the management of the banks and the regulators such as (FRCN, CBN, SEC) should mandate enhanced quantitative and qualitative disclosures of intangible assets.