The role of intangible assets such as intellectual capital promoting corporate competitiveness and further shareholders’ value has attracted attention in the finance literature. This study investigated intellectual capital efficiency as a source of creating shareholders’ wealth in Nigeria. To achieve the study’s aim, correlational research design was adopted. The study’s data were collected from content analysis of financial statements of listed service companies in Nigeria. The sample used in this study includes 17 service firms listed on the Nigeria Exchange Group from 2011 to 2022. The VAIC model was utilized to estimate intellectual capital. Descriptive statistics were conducted while some diagnostic tests were piloted before the regression analysis. The random effect regression model was used to verify whether the studied variables impact shareholders’ wealth of listed service companies in Nigeria. Findings indicated that value added intellectual coefficient as a measure of intellectual capital has a significant positive association with shareholders’ wealth. Results further revealed that human capital efficiency, relational capital efficiency and capital employed efficiency (as components of intellectual capital) are significantly and positively associated with shareholders’ wealth while structural capital efficiency has a positive but not significant relationship with shareholders’ wealth creation. The study concludes that efficient management of intellectual capital can enhance shareholders’ wealth in listed service companies in Nigeria and recommends amongst others that firms should make strategic plans regarding intellectual capital and intangible assets as it can increase corporate competitive advantage.
Effect of Environmental Cost on Performances of Quoted Firms in Sub-Saharan Africa, 2007-2016 (Published)
The study examined the effect of environmental costs on performances of quoted firms in Sub Saharan Africa. The study adopted longitudinal/panel ex-post facto research design and random sampling technique while quantitative secondary data covering 2007 to 2016 were obtained for sixty-four extractive and industrial firms quoted in the Stock Exchanges of four Sub-Sahara African countries namely South Africa, Nigeria, Ghana and Tanzania. The models for the study were estimated using Ordinary least square regression (OLS) built on panel data analysis. In the regional level analysis as well as in South Africa and Nigeria specific country analyses, the study revealed that environmental costs represented by employee health and safety, waste management and community development costs have no significant effect on return on capital employed, earnings per share and return on equity. The study showed that in Ghana, the predictor variables demonstrated significant effect on return on capital employed and return on equity while only waste management cost has significant effect on return on capital employed and return on equity in Tanzania. The implication of the preponderance of the findings, save for the aforementioned exceptions in Ghana and Tanzania, is that quoted firms in the region are yet to adequately indulge in environmental responsibility or their environmental engagements are not adequately captured and disclosed to the extent that can cause significant swings in the measures of firm performance. The implication of the exceptions found in Ghana and Tanzania is that of comparative improvement in environmental responsibilities, compliances and disclosures by quoted firms in the two countries. The study recommended among other things that firms in Sub Saharan Africa should give greater attention to environmental responsibility, cost recognition, classification and disclosures in the annual, integrated and sustainability reports.
Credit Risk and Financial performance: An empirical study of deposit money banks in Nigeria (Published)
Money deposit banks’ ability to mitigate credit risks has been a contemporary and controversial debate in literature, in contributing and extending the frontiers, this study examined the effect of credit risk on financial performance of money deposit banks in Nigeria. The study adopted an expo facto research design, descriptive and using inferential statistics to analyse the data. The population consisted of all the 19 money deposits banks (MDB) listed on the Nigeria stock exchange as at 31st December, 2018. A sample of 13 MDB were chosen on purpose, based mainly on availability of complete data within the study period under consideration. The study covered 169 firm-year observations for the period of 2006-2018. The study extracted secondary data from the financial statements of the banks explored for the study. The study identified three variables of financial performance (dependent variable) surrogated with return on capital employed (ROCE), the independent variable of credit risk proxied with non-performing loans, capital adequacy ratio, loan loss provisions loan to deposit ratio and the control variables of bank Size. The study found that credit management had a positive significant effect on financial performance of the MDB.(Ad R2=0.028,F(4,4170) =2.26;P-value <0.05)When the control variable of bank size (BSZ), stronger effect was exhibited, the study found that credit risk with bank size had a stronger significant effect on financial performance of MDB in Nigeria(Ad.R2=0.4311,F(4,4170)=321.95;p-value<0.05). The study concluded that credit management influences the financial performance of Deposit Money Banks in Nigeria. The study recommended that management of the MBD should design and maintain a robust credit management strategy and framework as well as stringent credit policy that would decrease non-performing loan and default level; and improve their performance level in Nigeria.