Intellectual capital,corporate governance and financial performance of quoted non-financial companies in Nigeria.(2007-2017)
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Date
2019
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Management and Accounting,Obafemi Awolowo University
Abstract
ABSTRACT
The study analysed the trend and pattern of intellectual capital among quoted non-financial companies in Nigeria and evaluated the extent of corporate governance practices among quoted non-financial companies in Nigeria. It also examined the effect of intellectual capital on performance measures of quoted non-financial companies in Nigeria and investigated the moderating role of corporate governance on the relationship between intellectual capital and performance. These were with a view to providing information on the extent to which corporate governance strengthens the relationship between intellectual capital investment and financial performance of firms in Nigeria.
Secondary data were employed for this study. Purposive sampling technique was used to select a sample of 50 companies out of the total population of 80 non-financial quoted companies whose stocks were actively traded on the Nigerian Stock Exchange for the period of 2007 to 2017 and whose data on relevant information were readily available and accessible. The choice of base year 2007 was informed by global economic recession that affected the financial performance of quoted non-financial companies in Nigeria. Data on intellectual capital and corporate governance such as human capital, structural capital, capital employed, board characteristics, ownership structure and firms’ economic data were sourced from the audited financial statements of sampled companies. Data collected were analysed using tables, percentages, content analysis and regression analysis.
The results revealed that the trend and pattern of intellectual capital among quoted non-financial companies in Nigeria vary ranging from -1.59 (Human Capital Efficiency), -0.81 (Structural Capital Efficiency) and -11.40 (Capital Employed Efficiency) to 428.43 (Human Capital Efficiency), 343.51(Structural Capital Efficiency) and 151.5 (Capital Employed Efficiency) across sectors and period. The result also showed that the extent of corporate governance practices among quoted non-financial companies in Nigeria as at 2017 was low at an average of 34.84%. Furthermore, the result revealed that human capital efficiency (t = 3.1319, p < 0.05), capital employed efficiency (t = 6.7011, p < 0.05), firm size (t = 2.2177, p < 0.05) had significant effect on return on equity while capital employed efficiency (t = 13.5989, p < 0.05) and leverage (t = 4.7112, p < 0.05) had significant effect on return on assets. Finally, the result showed that human capital efficiency (t = 2.1617, p < 0.05), structural capital efficiency (t = 2.3288, p < 0.05), capital employed efficiency (t =12.9183, p < 0.05) and leverage (t = 2.5309, p < 0.05) had significant effects on return on assets while corporate governance had moderating effect on the relationships between intellectual capital and the firm performance through the capital employed efficiency (t = 2.7389, p < 0.05), human capital efficiency (t = 2.2293, p < 0.05) and structural capital efficiency (t = 2.1051, p < 0.05).
The study concluded that corporate governance moderated the effect of investment in intellectual capital on financial performance in Nigeria.
Description
xvii,138p
Keywords
Intellectual capital, Quoted non-financial, Corporate governance, Employed efficiency
Citation
Adegabyibi,A.T.(2019).Intellectual capital,corporate governance and financial performance of quoted non-financial companies in Nigeria.(2007-2017)Obafemi Awolowo University