Intellectual Capital Components, Board Structure, and the Financial Performance of Listed Deposit Money Banks in Nigeria
Abstract
Nigeria has experienced significant bank failures in recent years due to managerial, economic, and regulatory issues. Poor business ethics, insufficient risk oversight, and poor accounting practices are some of the problems that have led to these disasters. The study examined the moderating effect of board structure on intellectual capital information and the financial performance of listed deposit money banks in Nigeria. Intellectual capital disclosure was disaggregated into human capital efficiency, structural capital efficiency and capital employed efficiency. Profitability was measured by return on assets while board structure was measured using board size and board independence. The study was predicated on knowledge-based theory. The study adopted ex-post facto research design. The study population comprised the 21 listed banks in the Nigerian Exchange Group while the 14 listed deposit money banks were the sample size. Panel regression analysis was employed to test the formulated hypotheses. Findings revealed that Board structure had a negative and positive moderating effect on intellectual capital and return on assets. The study concluded that board structure significantly moderates the interaction between intellectual capital disclosure and profitability of listed deposit money banks in Nigeria. The research recommended among others that banks should regularly assess the efficiency of intellectual capital disclosure and board structure to adjust to evolving economic and regulatory landscapes to improve their operational efficiency.
Keywords
Board structurecapital employed efficiencyhuman capital efficiencystructural capital efficiencyreturn on assets. JEL Classification: G1G2G3
References
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