EFFECT OF INTELLECTUAL CAPITAL ON PERFORMANCE OF LISTED FIRMS IN THE NON-FINANCIAL SECTOR IN NIGERIA

Abstract

The study investigated the effect of Intellectual capital on performance of listed firms in the non-financial sector in Nigeria, on all quoted non-financial firms in Nigeria from 2019-2023 using ex-post facto research design. The variables used were relational capital and human capital for intellectual capital, return on assets, return on equity and Tobin’s Q for firm performance. Panel regression analysis, using random effects model, as determined by Hausman specification test performed, was used for data analysis. Findings were that, there exists a negative and insignificant effect of relational capital m on both return on assets, return on equity and Tobin’s Q. However, human capital had a positive and significant effect on return on assets, return on equity and Tobin’s Q. Based on the results, the study recommended, among others, that owners and managers of firms should note that irrespective of whether the component of intellectual capital is relational or human if the process of investment and subsequent management is not planned, organized, well-coordinated, controlled and monitored such investment may not likely enhance firm performance.