INTANGIBLE ASSETS DISCLOSURE AND FIRM VALUE IN NIGERIA
ABSTRACT
This study is motivated by a desire to examine the intangible asset disclosure and firm value in Nigeria. In light of the empirical review and other discussions, a number of questions arose as to whether there is positive relationship between intangible asset and firm value. Using the Ordinary Least Square (OLS) regression technique with the aid of a computer software, the empirical findings revealed among other things that, there is a relationship between profitability and intangible asset disclosure. Recommendations were however made by the researcher.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
Background to the Study                     
Statement of the Research Problem             
Objectives of the Study                     
Research Hypotheses                 
Scope of the Study                    
Significance of the Study                 
Limitations of the Study                
CHAPTER TWO: LITERATURE REVIEW
Introduction                             
Review of Literature on Variables             
Review of Previous Studies                 
Theoretical Framework                  
CHAPTER THREE: RESEARCH METHODOLOGY
Introduction                         
Research Design                         
Population of the Study                     
The Sample Size                        
Sampling Technique                        
Sources of Data                         
Model Specification                         
Method of Data Analysis                    
References                             
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
Introduction                            
Data Description                        
Binary Regression Results                
Discussion of Regression Result            
Test of Hypotheses                        
CHAPTER FIVE:    SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION
5.1    Introduction                             
5.2    Summary of Findings                     
Conclusion                             
Recommendations                        
Bibliography                                 
Appendix                                 
CHAPTER ONE
INTRODUCTION
BACKGROUND TO THE STUDY
Hidayati, Fanani, Prasetyo and Mardijuwono, (2011), opine that, intangible assets are identifiable nonmonetary assets without physical substance. The intangible assets should be capitalized if the recognition criteria are met. Examples of intangible assets are patent, trademark, copyright, license, customers list, goodwill, etc. These intangible assets can be acquired by separate purchase, as part of business combination, government grant, exchange of asset, or by self-creation. Intangible assets have been widely recognized as the driving force of an economy's productivity growth and they have become more and more crucial for a firm's survival and prosperity. Nowadays, there are more people involved in the creation of intangible assets in the industrial economy. Intangible assets are firm’s dynamic capability created by core competence and knowledge resource, including organization structure, employment expert skills, employment centripetal force, R&D innovation capability, customer size, famous brand, and market share. They also indicate that intangible assets also can be represented by intellectual capital (IC) of a company. They divide IC into human capital, structure capital, customer capital, organization capital, innovation capital, and process capital and focus on the measurements and components of intellectual capital in some specific industry.
Svensson (2010) added that intangible assets have become more and more important as the information and knowledge society has been prevalent in the end of the 2000 century. At the same time, the intangibles have been more important to disclose to different stakeholders, for companies. The book values of companies have constantly been shrinking in relation to market value. He further opined that, the value and impact of intangibles are not adequately reflected in the traditional mandatory accounting framework. Intangibles can be denoted as a kind of unaccounted assets in the traditional accounting system. There is an international pressure on corporations to improve their accounting disclosure. Wide ranges of participant groups and other organizations have also diverse interests and concerns to see that accounting practices of disclosure are improved. In literature, practices of disclosure are basically related to the communication framework of capital market.
Vergauwen, Bollen, and Oirbans (2007), observed that, one of the main factors that highlight the importance of intellectual capital (IC) within firms is to shift in the focus of management from tangible to intangible capital when considering the “value creation” processes within firms. They suggests that there is an increasing trend among firms to provide additional information on intangibles on a voluntary basis. An obvious reason for doing so is reducing the information asymmetry between management and shareholders and investors, thereby meeting, “forces that make the basis of the case for the provision of operating and IC information” in a rapidly changing environment.
STATEMENT OF THE RESEARCH PROBLEM
Over the last fifteen (15) years or so there have been a number of calls for accounting reforms, with claims that the traditional historic cost approach has outlived its usefulness. One of the claims often made in these debates is that the economy has changed in fundamental ways that business is now fundamentally “knowledge-based” rather than industrial, and that “intangibles” are the new drivers of economic activity. Based on these claims, commentators contend that one of the key problems faced by financial disclosure is that financial statements failing to recognize many of the most important knowledge-based intangibles, such as intellectual capital, and that this has adversely affected investments in intangibles.
Against this backdrop, the following research questions are raised:
What is the relationship between profitability and intangible asset disclosure?
What is the relationship between company size and intangible asset disclosure?
What is the relationship between total shareholders fund and intangible asset disclosure?
  OBJECTIVES OF THE STUDY
The research main objective is to examine intangible asset disclosure and firm value in Nigeria. The specific objectives are to:
examine the relationship between profitability and intangible asset disclosure.
determine the relationship between company size and intangible asset disclosure?
examine the relationship between total shareholders fund and intangible asset disclosure?
RESEARCH HYPOTHESES
The following hypotheses have been formulated to serve as a base for this research;
Hypothesis I
Ho:    There is no relationship between profitability and intangible asset disclosure.
Hi:    There is a relationship between profitability and intangible asset disclosure.
Hypothesis II
Ho:    There is no relationship between company size and intangible asset disclosure.
H1:    There is a relationship between company size and intangible asset disclosure.
Hypothesis III
Ho:    There is no relationship between total shareholders fund and intangible asset disclosure.
H1:    There is a relationship between total shareholders fund and intangible asset disclosure.
 SCOPE OF THE STUDY
This research work is an empirical study on intangible asset disclosure and firm value. The population of the study is entire quoted companies in the Nigeria Stock Exchange, while the sample size is five (5) quoted banks operating in Nigeria.
The length of period covered by the study was three years (2007 – 2011).
Geographically, the study will be conducted in Benin City, Edo State.
SIGNIFICANCE OF THE STUDY
This study will be important and beneficial to stakeholders of corporate firms on the important of intangible asset disclosure and firm value.
The study will assist the government and regulatory agencies on the proper conduct of intangible asset disclosure.
The study will help to restore the lost confidence of the public as regard the intangible asset disclosure.
The study will assist both academic and other future researchers in this similar subject matter will find it a useful source of learning and research.   
The study will increase the information content of the financial reports from which sound report could be taken by users of such financial reports.
LIMITATIONS OF THE STUDY
In the course of conducting this research work, the researcher encountered some constraints. These constraints are:
Inadequate Study Materials: Research materials were of limited supply due to the practicality of the study. Where they were available; the cost involved in sourcing for them was very expensive.    
Lack of Access to Current Data: Most managements and staff of the establishment would not want to disclose important or relevant information about their organizations on this subject matter, except were such is permitted by law to be disclosed.  
Finance Cost: The cost involved in sourcing for the available materials and other necessary information was very high within the reach of the student researcher.