Cryptocurrency and Digital Asset Disclosure Quality in Nigeria

Abstract

This study examined the effect of cryptocurrency involvement on digital-asset disclosure quality among listed firms in Nigeria. Specifically, the study investigated the effects of crypto currency adoption, cryptocurrency exposure, scale of crypto currency-related activities, cryptocurrency risk exposure, and cryptocurrency involvement on digital-asset disclosure quality. An ex post facto research design was adopted, using secondary data extracted from the audited annual reports of ten (10) listed firms selected purposively from forty-two (42) cryptocurrency-recognizing firms over the period 2016–2025, resulting in one hundred (100) firm-year observations. Data were analyzed using descriptive statistics, diagnostic tests, correlation analysis, and fixed effects panel regression. The findings revealed that cryptocurrency adoption, cryptocurrency exposure, scale of cryptocurrency-related activities, cryptocurrency risk exposure, and cryptocurrency involvement each exerted a positive and statistically significant effect on digital-asset disclosure quality. The study contributes to knowledge by developing a multidimensional framework for measuring cryptocurrency and demonstrating its significant influence on digital-asset disclosure quality among listed firms in Nigeria. The study concludes that increased engagement in crypto currency-related activities enhances the quality of digital-asset disclosures among listed firms in Nigeria. The study recommends that firms strengthen their digital-asset reporting frameworks by providing comprehensive disclosures on cryptocurrency transactions, valuation methods, risk-management practices, and regulatory compliance in order to enhance transparency, improve stakeholders' confidence, and support informed investment decisions.