Effect of Intellectual Capital on Financial Performance of Quoted Deposit Money Banks in Nigeria (2010-2015)

Journal of Global Accounting, Vol. 5, No. 1, April 2017

15 Pages Posted: 27 Feb 2018

See all articles by Ogbodo Cy. Okenwa

Ogbodo Cy. Okenwa

Nnamdi Azikiwe University - Department of Accountancy

Nestor Amahalu

Nnamdi Azikiwe University - Department of Accountancy

Mary-Fidelis Chidoziem Abiahu

Nnamdi Azikiwe University - Department of Accountancy

Date Written: April 30, 2017

Abstract

The objective of this study is to determine the effect of intellectual capital on the financial performance of quoted commercial banks in Nigeria. This study adopted panel data analysis of all the banks quoted on the Nigerian Stock Exchange as at 31st December 2015 for a period of six years (2010 – 2015). This allows for comparison of the performance of intellectual capital indices among the firms considered in this study. The population is made up of the 15 banks listed on the floor of the Nigerian Stock Exchange as at 31st December, 2015. This study made use ex-post facto research design. Data were gotten from secondary sources obtained from fact books, annual reports and accounts of the selected quoted commercial banks in Nigeria as at 31st December, 2015. The relevant data obtained were subjected to statistical analysis using Pearson coefficient of correlation, ordinary least square regression, heteroskedasticity test and Hausman test. The analysis of data was done using the Value Added Intellectual Coefficient (VAIC) made to measure the efficiency of value added of tangible and intangible assets used by a firm in its operation. The results of this study revealed that there is a positive and statistically significant relationship between Intellectual Capital and financial performance of deposit money banks in Nigeria at 5% level of significance. The researcher recommends the recognition of intellectual capital as an important business resource.

Keywords: Financial Performance, Intellectual Capital, Knowledge Asset, VAIC

JEL Classification: M40

Suggested Citation

Okenwa, Ogbodo Cy. and Amahalu, Nestor and Abiahu, Mary-Fidelis Chidoziem, Effect of Intellectual Capital on Financial Performance of Quoted Deposit Money Banks in Nigeria (2010-2015) (April 30, 2017). Journal of Global Accounting, Vol. 5, No. 1, April 2017. Available at SSRN: https://ssrn.com/abstract=3124944

Ogbodo Cy. Okenwa

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria

Nestor Amahalu

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria
+2348063393668 (Phone)

Mary-Fidelis Chidoziem Abiahu (Contact Author)

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria

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