Effect of Intellectual Capital on Financial Performance of Corporate Group of Firms in Nigeria

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Authors: Abdulazeez Eneye Ismaila, Egegwu Unogwu Emmanuel

Abstract

Businesses now understand how critical it is to manage all of their resources, especially their human resources, which are seen as the primary source of innovation. The effect of intellectual capital on the financial performance of Nigerian corporate group companies was examined. Ex-post facto research design was used for this study. The population of the study are the ten corporate groups on the Nigerian Exchange Group 2022. The study sampled ten corporate groups that were listed on the Nigerian Exchange Group from 2012 to 2022. The random sampling technique was used. Multiple panel regression was employed for the analysis of the study. The results reveal that human capital efficiency has a positive and significant effect on financial performance (ROA) of quoted corporate group firms in Nigeria; structural capital efficiency has a positive significant effect on financial performance (ROA) of corporate groups in Nigeria; capital employed efficiency has negative and insignificant effect on financial performance (ROA) of quoted corporate groups in Nigeria. The study concludes that intellectual capital influences corporate group firms in Nigeria. Thus, the study recommends that corporate group firms should implement comprehensive education and training programs aimed at enhancing the skills and capabilities of the workforce. Emphasis should be placed on continuous learning, knowledge transfer, and capacity building in both technical and soft skills to improve Human Capital Efficiency (HCE).

Keywords: Intellectual Capital, Human Capital Efficiency, Structural Capital Efficiency, Capital Employed Efficiency and Financial performance

2024-NIJAF-16-112 Abdulazeez and Egegwu.pdf

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