CORPORATE STRATEGIES INFORMATION DISCLOSURE AND BEHAVIOUR OF INVESTORS IN THE NIGERIAN CAPITAL MARKET

Abstract

Investors in the capital market rely on information disclosed in the financial statements in their investment decisions. Information disclosed in the financial statement is classified into mandatory and voluntary. One of the variants of voluntary disclosure is the corporate strategies information disclosure. Corporate strategies disclosure convey value-relevant information which enables investors to take informed decisions. This study is therefore conducted to examine the relationship between corporate strategies information disclosure and behaviour of investors in the capital market. The main objective of this study was to investigate whether the disclosure of information on corporate strategies has any influence on the behaviour of investors in the capital market. The corporate strategies disclosure was measured by disclosure checklist developed by the researcher while the investor’s behaviour was measured by market capitalisation. The relationship between corporate strategies disclosure and investor’s behaviour was explained by signalling theory. The study made use of ex post facto research design and data for the study were obtained from financial statements of 60 randomly selected firms listed on the Nigerian exchange group for the years 2015 to 2019. The data were analysed using descriptive statistics and regression model. The SPSS version 20 was used to analyse the data. The results of the analyses indicate that the parameters used to measure corporate strategies disclosure was significantly related to market capitalisation. This implies that the disclosure of information on corporate strategies significantly influences the behaviour of investors in the capital market. The study recommends amongst others that managers should strive to disclose information about their corporate strategies as a means of communicating positive signals about their firms