ABSTRACT
The study
examined the effect of intellectual capital costs on financial performance of
listed commercial banks in Nigeria. Many researchers have carried out research
on Intellectual Capital on financial performance but yet financial regulators
have not been able to incorporate/disclose Intellectual Capital cost on
Companies financial statement. More so, among the factors of production – Land,
Labour, capital and Entrepreneurship- (Labour which is intellectual capital) is
the only factor of production that is not reported in the financial statement. The study adopted the ex-post facto research design and was
conducted using longitudinal/panel data collected from the annual reports and
accounts of the selected banks in Nigeria for the period of ten years from 2007
to 2016. The fixed effect, random effect and the diagnostic houseman test was
conducted to determine the appropriate regression. The results showed that
there is significant relationship between Human capital cost and Structural
Capital Costs on Return on Investment while Capital Employed Efficiency showed
an insignificant effect on Return on Investment. Return on Assets is insignificantly
affected by the three coefficient of intellectual capital costs. It was also
established that Human Capital Efficiency is positive and significantly
affected by Return on Equity, although Return on Equity is not significant with
Structural Capital Efficiency and Capital Employed Efficiency. It was
observed that return on investment and return on equity were more significantly
affected by intellectual capital costs. To rank the effect of the relationship,
Return on Equity ranks first judging from the F statistic and R squared, while
Return on Investment ranks second from the criteria. It was therefore recommended that Human Capital Efficiency, Structural
Capital Efficiency and Capital Employed Efficiency make up the intellectual
capital which implies jointly that, intellectual capital has a positive and
significant effects of on financial performance of listed commercial banks in
Nigeria. Banks should invest vigorously in the development of their
human capital as the key driver of firms’ performance. It is also expected that
Management and stakeholders of the bank should
provide the infrastructure needed to achieve a virile intellectual capital in
the system and also do well to provide an enabling and conducive working
environment for its employees and an attractive environment for its customers
which are the reason they are in business.
EDIBO, E (2022). Effect Of Intellectual Capital Costs On Financial Performance Of Listed Commercial Banks In Nigeria. Mouau.afribary.org: Retrieved Oct 31, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-intellectual-capital-costs-on-financial-performance-of-listed-commercial-banks-in-nigeria-7-2
EDIBO, EDIBO. "Effect Of Intellectual Capital Costs On Financial Performance Of Listed Commercial Banks In Nigeria" Mouau.afribary.org. Mouau.afribary.org, 19 Oct. 2022, https://repository.mouau.edu.ng/work/view/effect-of-intellectual-capital-costs-on-financial-performance-of-listed-commercial-banks-in-nigeria-7-2. Accessed 31 Oct. 2024.
EDIBO, EDIBO. "Effect Of Intellectual Capital Costs On Financial Performance Of Listed Commercial Banks In Nigeria". Mouau.afribary.org, Mouau.afribary.org, 19 Oct. 2022. Web. 31 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-intellectual-capital-costs-on-financial-performance-of-listed-commercial-banks-in-nigeria-7-2 >.
EDIBO, EDIBO. "Effect Of Intellectual Capital Costs On Financial Performance Of Listed Commercial Banks In Nigeria" Mouau.afribary.org (2022). Accessed 31 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-intellectual-capital-costs-on-financial-performance-of-listed-commercial-banks-in-nigeria-7-2