IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 9 NO. 7 2024
DOI: 10.56201/ijefm.v9.no7.2024.pg126.139

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Does Intellectual Capitals Influence Manufacturing Companies Performance in Emerging Economies? A Study of Nigeria

Etim Osim Etim, Augustine Brendan Inyang, Usen Paul Umo, Ihenyen Joel Confidence, Ekwere Raymond Enang, Harrison Queen Ubong

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Abstract

This study was carried out to investigate whether intellectual capital influence financial performance of listed manufacturing firms on Nigerian exchange group for the period 2015 to 2023 financial periods. This is premise on the fact that knowledge assets seem the most important driver of organizational performance; attracting huge investment annually. Ex Post facto research design was adopted in the study. Thirty-three (33) quoted manufacturing firms in Nigeria cutting across two sub-sectors on the floor of the Exchange as at 31st December 2023 constituted the population and sample of the study. Return on Equity (ROE) was used as proxy for financial performance, while Human Capital (HC), Relational Capital (RC) and Structural Capital (SC) were proxies for Intellectual Capital. Panel data for the period of the study were mined from annual reports and financial statement of the sampled firms. Hausman test indicated fixed effect regression model as suitable for analysis. Descriptive statistic and Inferential statistics were used for the analysis. Results revealed HC, RC and SC were statistically significance and positive drivers of financial performance of quoted manufacturing firms in emerging economies like Nigeria. It was concluded that intellectual capital influence return on equity and recommended timely investments in training and development of employees, improvements on marketing and value chain activities to create relationship with both internal and external customers for enhanced capacity.

keywords:

Intellectual capital, Human capital, Relational capital, Structural capital, Return on

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