Intellectual capital performance: An empirical investigation of Nigerian Banks

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Department of Banking and Finance, University of Abuja


The influence of intellectual capital on the overall performance of a bank has become very important issue now than ever, this is due to the level of globalization and aggressive competition and the ever rising expectation of customers. As a result of this, there is a need for banks to be at their best in order to be relevant in the global market and its environment. Hence, this paper focuses on banking industry of developing economies and on Nigeria specifically. Using a sample of 20 audited annual report of Nigerian banks, the paper examines the intellectual capital component’ potentialities on financial performance measured with Return on Asset (ROA) and Public value added intellectual capital coefficient (VAIC) model. The paper adopted ordinary least square regression model for the purpose of analysis. The results of the study shows that, relationship exists between intellectual capital components and banks’ financial performance. It was found that human capital and structural capital influence financial performance of the sampled banks more than physical capital employed. This study reaffirms the previous empirical support for the potentiality of performance of intellectual capital in the overall success of companies in general and banks in particular. Based on the findings, the study recommends that banks in Nigeria should invest and manage their intellectual capital in order to increase their performance and remain sustainable in the global markets.



Intellectual capital components, Financial performance, Value added efficiency, Nigerian Banks