Empirical Examination of Integrated Component of Intellectual Capital on Financial Performance: Study of Select Service and Non-Service Firms in Nigeria

Okoye, E.I. Aroh, N.N & Egbunike, A.P. (2015): Empirical Examination of Integrated Component of Intellectual Capital on Financial Performance: Study of Select Service and Non-Service Firms in Nigeria Available at SSRN: https://ssrn.com/abstract=3097869

17 Pages Posted: 11 Jan 2018

See all articles by Emmanuel Ikechukwu Okoye

Emmanuel Ikechukwu Okoye

Nnamdi Azikiwe University - Department of Accountancy

Nkechi Nympha Aroh

Federal Polytechnic Oko

Amaechi Egbunike

Nnamdi Azikiwe University - Department of Accountancy

Date Written: September 1, 2015

Abstract

This study assessed the impact of the components of Intellectual Capital (Human Capital, Structural Capital, Relational Capital and Innovation Capital) of Companies listed on the Nigerian Stock Exchange with a view to determining their association with financial performance. The study adopted multiple regression analysis in analyzing data collected from annual reports and accounts of the sampled companies to determine the continue effect of intellectual capital on financial performance among the 182 listed companies. Based on this, the study found out that the integrated effect of the components (Human capital, structural capital, relational capital and innovation capital) made about 40% contribution to the variance in financial performance of the companies. The study developed a model for understanding the IC components and their effect on organization financial performance. The application of this is that investment in IC can contribute to over 40% of change in financial performance consequent upon this, it is recommended that Nigerian listed companies should substantially invest in IC to help boost companies’ financial configuration.

Keywords: Integrated Components, Intellectual Capital, Financial Performance, Firms, Nigeria

JEL Classification: M40

Suggested Citation

Okoye, Emmanuel Ikechukwu and Aroh, Nkechi Nympha and Egbunike, Amaechi, Empirical Examination of Integrated Component of Intellectual Capital on Financial Performance: Study of Select Service and Non-Service Firms in Nigeria (September 1, 2015). Okoye, E.I. Aroh, N.N & Egbunike, A.P. (2015): Empirical Examination of Integrated Component of Intellectual Capital on Financial Performance: Study of Select Service and Non-Service Firms in Nigeria Available at SSRN: https://ssrn.com/abstract=3097869, Available at SSRN: https://ssrn.com/abstract=3097869

Emmanuel Ikechukwu Okoye (Contact Author)

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria

Nkechi Nympha Aroh

Federal Polytechnic Oko

PMB 021 Aguata
Anambra +234
Nigeria

Amaechi Egbunike

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria

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