Abstract:
The study investigates the impact of human capital disclosure on firm value measured by
Tobin Q. The study was based on signaling, legitimacy, and agency theories. The study employed a
correlational and longitudinal research design. The target population consisted of sixty-two (62) Nairobi
Securities Exchange-listed firms between 2017 and 2021. Census technique was used to select all the eligible
firms to participate in the study. Secondary data was collected using a secondary data extraction tool. Experts
and supervisors interrogated research instruments to determine their reliability. The reliability of the instrument
was achieved through collecting the data from audited company annual reports. Both descriptive and inferential
statistics were used for the data analysis. Specifically, correlation analysis was used to examine the relationship
between variables, while multiple linear regression analysis was used to test the hypotheses using panel data.
The data was presented using tables and graphs. The findings indicated a continuous declining trend in the
human capital disclosure index from 2017 to 2021. Human capital disclosure had a significantly positive
relationship with Tobin Q (β=3.043722, P<0.05). The study recommends that firms should improve human
capital disclosure, to enhance firm value
