Intellectual Capital Investment and Corporate Sustainability Growth: An Empirical Evidence on Listed Firms in Nigeria

Abstract

The study examined the relationship between intellectual capital investment and corporate sustainability growth. Intellectual capital investment was proxy using human capital investment (HCI), relational capital investment (RCI) and structural capital investment (SCI) while corporate sustainability growth was measured using corporate sustainability growth rate (CSGR). Ex post facto design was adopted and data for this study was collected from the annual reports and accounts of the selected industrial goods firms listed on the floors of Nigerian Exchange Group (NGX) for the period of 2016-2022. Panel Least squares model was used in the data analysis and the results of the study show a significant and positive relationship between human capital investment, relational capital investment, structural capital investment and sustainability growth of industrial goods firms in Nigeria at 1% significant level. The study therefore concludes that intellectual capital investment ensures corporate sustainability growth. Thus, the study recommends that manufacturing firms in Nigeria should improve on human capital investment as any negative changes in human capital investment will impact the sustainable growth of the firm. They should also invest on relational and structural capital as it can improve their competitiveness and bottom line

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