INTELLECTUAL CAPITAL AND CORPORATE PERFORMANCE IN NIGERIA BANKS
DOI:
https://doi.org/10.47672/ajacc.273Keywords:
Intellectual capital, asset quality, loan quality, net income, Ordinary Least Square (OLS)Abstract
Purpose: This study is on the interaction between corporate performance variables and Intellectual capital effectiveness of selected banks in Nigeria.
Methodology: One multivariate model that incorporates the three performance indicators was formulated. The three (3) indicators are Asset Quality, Loan Quality, and Net Income. The study adopted ex-post-facto research design on a time series data spanning 10 years (2006-2015). The sampling technique was purposive sampling and data were drawn from the financial statements of the selected banks. Ordinary Least Square regression analysis was employed to test each of the three (3) hypotheses, at 5% level of significance.
Results: The results indicated that; intellectual capital contributes positively to asset quality of banks; there is no significant positive effect of intellectual capital on loan quality; there is a significant positive effect of intellectual capital on net income of the banks.
Unique contribution to theory, practice and policy: The study recommended that banks should take inventory of her portfolio (assets) so as to identify those of them that are no longer useful and also employ qualified, experienced and trained staff to add value to her intellectu1resources.
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