EFFECT OF INTELLECTUAL CAPITAL ON THE FINANCIAL PERFORMANCE OF NIGERIAN LISTED CONGLOMERATE FIRMS

Managers must constantly understand the significance of accounting in the economy for economic units' decision-making since financial reports are regarded as an indicator of investors' decision-making regarding traditional organizational performance measures. However, conventional annual financial statements only partially convey the value of intangible assets in the knowledge era, where intellectual capital accounts for a significant portion of a product's worth. This study evaluates the intellectual capital and financial performance of listed conglomerates firms in Nigeria. The population was five quoted conglomerate firms in Nigeria with a sample of the same for ten years from 2010-2019. Ordinary regression analysis with the aid of Eview was adopted to establish the cause-effect of intellectual capital and financial performance. Results reveal how human capital efficiency positively but insignificant impact on the financial performance (ROA) of listed conglomerates firms in Nigeria; structural capital efficiency has a negative significant effect on the financial performance (ROA) of listed conglomerates firms in Nigeria; capital employed efficiency has negative and insignificant impact on financial performance (ROA) of listed conglomerates firms in Nigeria with a p-value greater than a 5% level of confidence hence, The study recommends that Conglomerates firms should implement regulations that improve and advance their staff members' proficiency in the field of training and development; an improvement in both usage and investment in human capital for improved performance of listed conglomerate firms in Nigeria; judicious use and efficient investment in both structural capital and capital employed for optimal performance of listed conglomerate firms in Nigeria.

1 01 Dec, 2024

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