Evaluation of Manufacturing and Human Capital Reporting as Predictors of Cost of Capital Among Listed Manufacturing Companies in Nigeria

Abstract

Cost of capital remains the main issue to investors, especially in the manufacturing sector as it plays a significant role in business initiation. This study examined manufacturing and human capital reporting as predictors of cost of capital among the listed manufacturing companies in Nigeria. Ex-post facto research design was adopted. The population of this study was derived from 75 listed firms in the Nigerian Exchange Group (2023) from where the sample of 22 listed manufacturing firms was selected using purposive sampling technique. Radom Effect method of Panel Regression was adopted for data analysis. Findings revealed that manufacturing capital reporting has greater effect on cost of equity capital than human capital reporting, financial reports by manufacturing films in Nigeria have not been well integrated and this has impacted negatively on their costs of debt and costs of retained earnings. The study recommended that the Federal Government should make the business environment more conducive to ensure an enhanced ease of doing business especially for manufacturing companies in Nigeria. Also, Manufacturers Association of Nigeria (MAN) should collaborate with non-governmental organizations (NGOs) and government agencies to ensure that adequate financial credit is made available to manufacturing sector investors in Nigeria at low rates of interest.