The Forward looking information disclosure among non-financial firms in Nigeria (2012-2020)

Abstract

This study investigated the trend of forward looking information disclosure among non-financial
firms in Nigeria over the period of nine years that is, 2012 to 2020. The study employed secondary data
which were obtained through content analysis of the financial statements of sampled non-financial firms.
The population of the study consists of 115 non-financial firms listed on the Nigerian Stock Exchange as
at 31st December, 2020. 50 firms were purposively sampled based on the availability of financial statement
and listing age over the period examined by the study. The data were analysed using percentages
and charts. The findings of the study revealed that based on the forward looking information disclosure
index employed, Nigerian firms disclosure 35.49 percent forward looking information disclosure level
over the nine year sampled with the year 2019 reflecting the highest level of forward looking information
disclosure at 39.8 percent. The study concluded that although forward looking information disclosure
had experienced a steady increase in disclosure levels over the sampled period, the level of forward
looking information is relatively low to satisfy stakeholder needs and therefore recommends that management
of firms in Nigeria should endeavour to improve forward looking information disclosure due to
its importance to stakeholder’s decision making.
Key words: Forward looking information disclosure, Forward Looking Information Index, Voluntary
Disclosure, Corporate Reporting.