Intellectual Capital and Corporate Performance of Listed Non-Financial Firms in Nigeria
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Abstract
Intellectual capital plays a pivotal role in disclosing business resources, thereby assisting in determining a business's actual financial position and in making effective business decisions. This research explored how intellectual capital affects corporate performance by examining samples of listed non-financial companies in Nigeria for the 2015-2024 period. The study used human capital, structural capital, and relational capital as proxies for intellectual capital to assess their impact on company performance. Performance was measured using the return on total assets (RETA). The research employed an ex post facto design, utilising secondary data and purposive sampling to select a sample of 80 firms. Data were analysed using regression analysis. The findings indicate that human capital had a positive but statistically insignificant effect on return on total assets.
In contrast, structural and relational capital had significant positive effects on the return on total assets of the selected firms. The study concluded that relational and structural capital play a vital role in enhancing the performance of listed non-financial companies in Nigeria. Based on these findings, the study recommends that managers should focus more on investing in structural and relational capital as they positively influence financial performance. It also suggests that, despite its insignificant direct effect, human capital should not be overlooked, as the firm's other resources cannot function optimally without the creativity, abilities, and innovative capacities of its employees. This study empirically establishes the relative importance of structural and relational capital in enhancing firm performance in Nigeria’s non-financial sector, offering actionable insights for managers and policymakers in emerging economies.
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