IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 12 2024
DOI: 10.56201/jafm.v10.no12.2024.pg190.207

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Intellectual Capital and Financial Performance of deposit money banks in Nigeria

Ese Bassey Nsentip, Dorathy Christopher Akpan, Affiong Otung and Mfon U Etuk

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Abstract

The competitive environment has ignited a shift in the mode of operations of financial institutions especially banks, making it to become one of the most knowledge-based industry. A vital component in this industry currently, is the knowledge capital also called Intellectual Capital. This paper examined the influence of intellectual capital on financial performance of deposit money banks in Nigeria. The main objective of this study was to examine the influence of intellectual capital on the performance of deposit money banks in Nigeria. The study adopted ex-post facto design this was because the study relied on previously generated data The population of the study was the fourteen (14) Deposit money banks listed on the Nigerian Stock Exchange as at 2022, of which Six banks were purposively selected The secondary source data was employed covering fifteen (15) years (2007-2021). The study also employed a descriptive statistic and regression analysis was used to test the two hypothese. The result of the findings of hypotheses one showed that with t.cal of- 0.545 it indicated that there is no significant impact of relational capital efficiency on the performance of deposit banks in Nigeria. Also, based on the decision rule of hypotheses two the result indicated that the null hypotheses two was rejected with t.cal. of 3.721 thereby implying that there is a significant influence of human capital efficiency on performance of deposit money banks in Nigeria. They study concluded that intellectual capital influences performance of deposit money banks in Nigeria. It was therefore recommended that bank should maintain equilibrium in their investment in intellectual capital components which include human capital and relational capital. They should also initiate strategies that will guarantee continued growth in performance.

keywords:

Intellectual capital, Performance, and Relational capital

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