Intellectual Capital and Corporate Risk Disclosure in the Nigerian Banking Sector

The aim of this study is to look into the impact of intellectual capital on corporate risk disclosure in the Nigerian banking industry. A total of eight Nigerian stock exchange-listed banks make up the sample. Strategic and environmental risk disclosures are overshadowed by operational risk disclosures, according to the manual’s content analysis. Banks also made it customary to share a lot of good news and nonmonetary information from the past rather than negative news and future and monetary risk information. This strategy has diminished the relevance of risk disclosure to a large number of stakeholders due to a lack of relevant risk information for decision-making. Moreover, when analyzing the variables affecting risk disclosure behavior, the regression results indicate that intellectual capital, bank size, institutional investors, and leverage are the main determinants of whether or not to increase risk disclosure. Furthermore, both internal and external capitals are critical components of intellectual capital in explaining risk disclosure in Nigerian banks. Liquidity, independent directors, and human capital, on the other hand, have little bearing on the risk information that banks must disclose.