Human Capital Diversity and Relevance of Accounting Information of Quoted Manufacturing Companies in Nigeria

Abstract

Relevance of accounting information has been beset with the major problem of unethical practices such as aggressive earnings management, non-compliance with company’s corporate governance, and unhealthy focus on making the financial statements look attractive which seems prevalent in the quoted manufacturing companies in Nigeria. These incidentally affect the companies reporting and also have a major impact on various human capital diversity.  On the other hand, most financial reports do not indicate cogent factors that affect financial condition and the components of human capital diversity. The study investigated the effect of human capital diversity on relevance of accounting information of quoted manufacturing companies in Nigeria.The study employed survey research design. The population of the study was two thousand nine hundred and seventy employees of quoted manufacturing companies on the Nigerian Stock Exchange (NSE). Stratified and purposive sampling technique were used and a total of six hundred and seventy (670) were distributed out of which 600 copies were properly filled and returned representing 89.55% success rate. The Cronbach Alpha reliability coefficient range between 0.710 and 0.972. The data were analysed using descriptive and inferential  (multiple regression )statistics.The study found that human capital diversity has significant effect on the relevance of accounting information Adjusted R² = 0.250 ; (F_{4, 449)} = 59.5, p < 0.05). The study concluded that human capital diversity has significant effect on the relevance of accounting information of manufacturing companies in Nigeria. The study recommended that governments and its agencies should provide good  environment for human assets to showcase their diversity through political influence, religious influence, social influence, and intellectual influence to enhance quality provision of relevant of accounting information.

Keywords:Financial Information, Financial Reporting Quality, Human Capital Diversity, Manufacturing Companies, and Non-financial information

DOI: 10.7176/RJFA/13-10-01

Publication date:May 31^st 2022