Intellectual Capital on Financial Performance of Nigerian Companies
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Date
2022
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Universitas diponegoro
Abstract
Intellectual capital efficiency measurement is a major problem facing managers of companies
because of its intangible nature; thus, there is difference between book-value and market value of assets of the
companies. Hence, this work investigated the intellectual capital (IC) efficiency on companies’ performance
of 117 quoted firms in Nigeria between 2018 and 2019 periods using Pulic Value Added Intellectual Coefficient
(VAIC) Model. Data were sourced through secondary means from audited annual reports of the sample. The
data gathered were analyzed with both Pearson correlation and regression analysis to test the study
hypotheses. The results of the study revealed that there is positive significant relationship between Human
Capital efficiency, Return on Equity and Return on Asset. The study further revealed positive and significant
relationship between Structural Capital Efficiency, Return on Equity and Return on Asset. But out of three
control variables only sector was significant with structural capital efficiency. The study concluded that
intellectual capital efficiencies influence companies’ performance of the sampled companies. The study
recommended that management of the sampled companies should give priority to policies that will improve
employees’ capability and organizational structure.
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Keywords
company performance, intellectual capital, Nigeria, value added