EFFECT OF INTELLECTUAL CAPITAL ON FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study investigates the effect of intellectual capital components on the financial performance of listed deposit money banks in Nigeria. The study employed an Ex Post Facto design method using twelve selected commercial banks out of the total population of fifteen banks listed on the Nigerian Exchange Group. The study relied on secondary sources, specifically the annual reports of the examined financial institutions spanning the years 2012 to 2021. The hypotheses were formulated and tested using a panel regression analysis via STATA version 14. The results revealed that VAIC, CEE, and HCE had a positive and statistically significant effect on EPS, while SCE showed a positive but non-significant effect. In conclusion, intellectual capital, as represented by VAIC, CEE, and HCE, influences the financial performance of Nigerian deposit money banks. It was recommended amongst others that organizations invest in intellectual capital development, allocate resources for human capital management, optimize capital structure, and enhance structural capital efficiency to improve long-term financial performance. Keywords: Intellectual capital, financial performance, value-added intellectual capital, capital employed efficiency, Human capital efficiency, structural capital efficiency,  earning per share