Intellectual Capital and Shareholders’ Wealth. The Economic Value Added Approach (Published)
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.
Keywords: : Human Capital, Intellectual Capital, Relational capital, Shareholders Wealth, capital employed, economic value added, structural capital
Dividend Policy and Performance of Listed Microfinance Banks in Nigeria (Published)
This research focuses on Dividend policy and its impact on performance of listed micro finance banks in Nigeria between2006 and 2021.The ordinary least square estimation technique and multiple regression method of data analysis was utilized..It was discovered that all the explanatory variables ie Return on Assets ,Liquidity ratio, Debt ratio and size of banks did not significantly impact Dividend Policy surrogated by Dividend Payout within the period of the study .It was therefore suggested that micro finance banks should increase dividend payments to its shareholders and also expand their branch network .The Central Bank of Nigeria is also advised to step up its supervisory role by plugging all loop holes through which liquidity is being depleted illegally by some of these micro finance banks.
Citation: Ozigbo A. Sylvester and Ekane Rapheal Ogagaoghene (2022) Dividend Policy and Performance of Listed Microfinance Banks in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 6, pp.46-55
Keywords: Real Sector, Shareholders Wealth, Wealth Maximization, finance gap, hybrid dividend policy
Effect of Dividend Policy on Shareholders Wealth in Nigeria (1986 To 2016) (Published)
This study investigated the effect of dividend policy on shareholders wealth in Nigeria. Data were generated on market price per share (MPS), dividend per share (DPS), net asset per share (NAPS) and earnings per share (EPS) from annual report and accounts of twenty five quoted companies in Nigeria stock exchange (NSE) Fact book and daily official list. To analyze the data, the statistical tools that have been used are ordinary least square regressions (OLS), unit root tests, Johansen cointegration and error correction model (ECM) for predicting the dividend policy effect on shareholder’s wealth. The significance of the various explanatory variables has been tested by computing t-values. To determine the proportion of explained variation in the dependent variable, the coefficient of determination (R2) has been worked out. The significance of R2 has also been tested with the help of F-value. The results show that most of the variable except dividend per share had significant relationship with market price per share. The R2 and F-test shows that earnings, dividend and net assets has combined effect on market price of shares but none of these variables has direct independent influence in determining the price of share in the stock market. This paper, therefore conclude that dividend payout does not have effect on shareholders wealth and shareholders do not react to dividend information. It was therefore recommended that firms operating under this environment should ignore distribution of earning and concentrate with investments that will boost net assets.
Keywords: Dividend Policy, Nigeria, Shareholders Wealth