Intellectual Capital on Financial Performance of Nigerian Companies

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Universitas diponegoro


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.



company performance, intellectual capital, Nigeria, value added