Does Pension Liability Disclosure Improve Financial Performance Evidence from Nigerian Pension Fund Administrators

Prof. Gurowa; Sani Usman; Nuhu Umar PhD; Aminu Ibrahim Yakasai PhD

doi:10.56201/jafm.vol.12.no5.2026.p241.247

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Does Pension Liability Disclosure Improve Financial Performance Evidence from Nigerian Pension Fund Administrators

Prof. Gurowa, Sani Usman, Nuhu Umar PhD, Aminu Ibrahim Yakasai PhD

Abstract

This study examines whether pension liability disclosure improves the financial performance of Pension Fund Administrators in Nigeria. Using balanced panel data from nineteen PFAs over the period 2014–2024, the research was anchored on Signaling and stakeholders theories. An ex post facto design was employed, using secondary panel data from audited annual reports of PFAs, PenCom publications, and macroeconomic records. Pension liability valuation and pension liability disclosure served as the independent variables the study constructs a pension liability disclosure index based on IAS 19 and PenCom reporting guidelines and employs fixed effects panel regression to analyses the disclosure–performance relationship. Financial performance is proxied by return on assets. The results show that pension liability disclosure has a positive and statistically significant effect on PFAs financial performance. The findings support signaling theory, suggesting that transparent disclosure enhances credibility, reduces information asymmetry, and improves operational efficiency. The study contributes emerging-market evidence to the literature on disclosure quality and institutional performance and provides policy-relevant insights for pension regulation.

Keywords

Pension liability disclosure; Financial performance; Pension Fund Administrators; Disclosure quality; Nigeria JAFM JAFM

References

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Does Pension Liability Disclosure Improve Financial Performance Evidence from Nigerian Pension Fund Administrators

Abstract

Keywords

References

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