IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 8 NO. 7 2022
DOI: https://doi.org/10.56201/jafm.v8.no7.2022.pg192.207

---

Intellectual Capital Potency and Firm Value in Nigeria; Evidence from Listed Nonfinancial Firms in Nigeria

Akwuobi, Bridget Udekwesili

---

Abstract

The objective of this paper is to investigate the influence of intellectual capital potency on firm value of non-financial firms in Nigeria. This study uses analysis technique to measure ICD. Secondary data were obtained from the Audited account reports of selected non financial firms and Nigerian exchange factbook for the period 2011-2020.This study selected 76 firms out of 107 quoted firms in non-financial sector of Nigerian economy using simple purposive sampling method. The 76 firms were analyzed using regression analysis. The results shows that there is negative influence of capital employed efficiency on firm value while human capital employed efficiency have positive but no significant influence on firm value. The moderating variables of firm size (FISZ) have negative and significant influence, while firm age (FIRA) has positive and non significant influence on firm value of non- financial firms in Nigeria. The findings enhanced the knowledge base of intellectual capital in emerging economies such as Nigeria. Based on the findings this study recommended that, the human capital component of intellectual capital should be trained and educated regularly, innovated, nurture capacity, creativity, know-how and previous experience, teamwork capacity, employee flexibility, tolerance for ambiguity, motivated, satisfied, so as to enhance the usefulness of its output to total input. Also firm specific growth and sustainability policy should strongly placed using corporate governance code and other enhanced internal structural innovative processed to ensure that the firm does not extinct.

keywords:

Intellectual Capital Potency; Capital Employed Efficiency; Human Capital Efficiency; Firm Size; Firm Value

---

References:

Adesanmi, T. (2021). Intellectual capital and firms’ performance measures of listed non-
financial companies in Nigeria
Ali, T. (2014). Intellectual capital. research paper. Kocaeli University Institute of Social
Science, Turkey.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of
Accounting and Taxation. 17(1), 99 – 120.
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of
Management, 17, 99–120
Bontis, N. (2001). Assessing knowledge assets: A review of the models used to measure
intellectual capital. Int. J. Manag. Rev.3, 41–60.
Edvinsson, L., & Malone, S. M. (1997). Intellectual capital: Realizing your company’s true
value by finding its hidden brainpower. New York: Harper Business
Garima S., Nemiraja J., & Anto J. (2021). The relationship between human capital and firm
value: Evidence from Indian firms, Cogent Economics & Finance, 9:1,
DOI:10.1080/23322039.2021.1954317
Hasan Subhi and Hasan Hussein Alabass (2019) Intellectual capital and financial
performance: Empirical evidence from Iraq stock exchange (ISE), Academy of
Accounting and Financial Studies Journal,23(1)
Hendra, G., & Widya, R. (2018). How intellectual capital effects firm’s financial
performance. Journal of Applied Accounting and Taxation, 3(1), 1-8
Mohammad, H. S. (2021). The Interaction Effect of human capital efficiency on the nexus
between intellectual capital and profitability: Evidence from Malaysian SMEs.
International Journal of Academic Research in Accounting Finance and Management
Sciences, 11(1), 183-200
Nazari, J., & Herremans, I. M. (2007), Extended VAIC model: Measuring intellectual capital
components. J. Intellect. Cap, 8, 595–609
Obiora, F., Omaliko, E., & Okeke, C. (2022). Effect of e-naira digital currency on financial
performance of listed deposit money banks in Nigeria. International Journal of Trend

DOWNLOAD PDF

---

Back