ABSTRACT

This study examines the "effect of Intellectual Capital on the profitability of Brewery companies in Nigeria", with an objective to ascertain how human capital efficiency, structural capital efficiency and capital employed efficiency affects the net profit margin of Brewery companies in Nigeria. Ex-post facto research design was adopted and data were collected using secondary sources. From the population of 5 brewery companies, a sample size of 3 companies were selected namely; Champion Brewery Plc, Guinness Plc and Nigeria Brewery Place. The data collected was analyzed using simple linear regression with the aid of statistical package for social sciences (SPSS) version 22. The findings reveals that intellectual capital as measured by Human capital efficiency (HCE) and Capital employed efficiency (CEE) has a positive effect on profitability of Brewery firms in Nigeria. However Structural capital efficiency (SCE) has no significant effect on the profitability of companies in brewery industries in Nigeria. The study recommends that deliberate effort should be made by firms to restraint those factors that militates against a successful intellectual capital policy, since profitability is found to have effect on companies and efforts must be made to grow intellectual capital through the recruitment of competent staffs, training and motivating them.

TABLE OF CONTENTS

Title page                                                                                                                                i

Declaration                                                                                                                              ii

Certification                                                                                                                            iii

Dedication                                                                                                                              iv

Acknowledgements                                                                                                                v

Table of contents                                                                                                                    vi

List of Table                                                                                                                            ix        

Abstract                                                                                                                                  x        

CHAPTER ONE: INTRODUCTION

1.1              Background to the Study                                                                                           1

1.2       Statement of the Problems                                                                                         4

1.3       Objectives of Study                                                                                                    4

1.4       Research Questions                                                                                                     5

1.5        Research Hypotheses                                                                                                 5

1.6       Significance of the Study                                                                                           5

1.7       Scope/Limitations of the Study                                                                                  7

1.8       Definition of Terms                                                                                                    7

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1       Conceptual Framework                                                                                               9

2.1.1    Concept of Intellectual Capital                                                                                   9

2.1.2    Concept of Human Capital                                                                                         12

2.1.3    Importance and implications of Human Capital                                                         14

2.1.4    How to Increase Human Capital                                                                                14

2.1.5    Concept of Structural Capital                                                                                     16

2.1.2.1 Importance of Structural Capital                                                                                17

2.1.6    Concept of Capital Employed                                                                                                18       

2.1.6.1 Characteristics of Capital                                                                                            19

2.1.6.2 Fixed Capital and Working Capital                                                                            19

2.1.6.3  Functions of Capital employed                                                                                   20

2.1.6.4  Importance of Capital                                                                                                 21

2.2       Theoretical Framework                                                                                               23

2.2.1    Resource Based View Theory                                                                                                23

2.2.2    Human Capital Theory                                                                                                24

2.2.3    Social Capital Theory                                                                                      25

2.3       Empirical Review                                                                                                        25

2.4              Gap in Literature                                                                                                         30

CHAPTER THREE: RESEARCH METHODOLOGY

3.1        Research Design                                                                                                         32

3.2       Area of the study                                                                                                        32

3.3       Population of the Study                                                                                              33

3.4       Sample and Sampling Techniques                                                                              33

3.5       Method of Data Collection                                                                                         35

3.6       Model Specification                                                                                                    35

3.7       Data Analysis Techniques                                                                                           35

CHAPTER FOUR: DATA ANALYSIS AND RESULTS

4.1       Data Presentation                                                                                                        39

4.2       Data Analysis                                                                                                              41

4.2.1    Correlation Analysis                                                                                                   41

4.2.2    Data Analysis for Hypothesis                                                                                     43

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1       Summary                                                                                                                     49

5.2       Conclusion                                                                                                                  49

5.3       Recommendation                                                                                                        50