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

Abstract

Studies of the economic consequences of accounting information comparability mainly focus on the level of the individual firm prevalent in the quoted manufacturing companies in Nigeria which incidentally affect various human capital diversities.  On the other hand, most financial reports do not indicate comparability that will improve the performance of the entity and components of human capital diversity. The study investigated the effect of human capital diversity on comparability 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 techniques 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 ranged between 0.710 and 0.972. The data were analysed using descriptive and inferential (multiple regression) l statistics. The study found that human capital diversity has significant effect on faithful representation of accounting information Adjusted R² = 0.370; (F_{4, 449)} = 56.6, p < 0.05). The study concluded that human capital diversity has significant effect on the faithful representation of accounting information of quoted manufacturing companies in Nigeria. The study recommended that the policy maker should encourage and create a conducive atmosphere for human assets to showcase their political influence, religious influence, social influence, and intellectual influence for organization to attain high quality reporting through comparability of financial reports.