Abstract
PurposeThis study empirically investigates the level of intellectual capital efficiency amongst the listed commercial banks in Nigeria and the factors influencing its efficient utilisation.Design/methodology/approachThe paper employs the data envelopment analysis (DEA) to determine intellectual capital efficiency for the listed banks in Nigeria using data obtained from their annual financial reports from 2013 to 2019. After obtaining the efficiency scores, the Tobit regression technique was used to analyse the impact of firm-specific factors on intellectual capital efficiency.FindingsThe study found that only 8.33% of the sampled Nigerian commercial banks are at optimum capacity in utilising their intellectual capital, while 91.67% are inefficient. It also finds that bank size and directors' shareholdings positively impact intellectual capital efficiency, while market and ownership concentration debar the attainment of optimum intellectual capital efficiency.Research limitations/implicationsThis study contributes to very scare literature on intellectual capital efficiency measurements by using the non-parametric analysis (DEA) to measure intellectual capital efficiency for listed banks in Nigeria.Practical implicationsThis study showcases the importance of measuring intellectual capital efficiency amongst listed banks in Nigeria. It provides more information to the regulators and stakeholders on the need to enforce the disclosure of the value created from intellectual capital investment.Originality/valueThis study contributes to the scarce literature on measuring intellectual capital efficiency using a non-parametric analysis (DEA). It also provides new insights into the factors that influence intellectual capital efficiency amongst listed commercial banks in Nigeria.
Highlights
In the last 2 decades, a drastic transition of economies has emerged, from a traditional-driven approach to a more knowledge-intensive driven approach (Ali and Anwar, 2021; Vidyarthi, 2018)
3.3 Model specification Following the need to examine the levels of intellectual capital of commercial banks in Nigeria as the factors that influence its efficient utilisation, a two-stage procedure involving data envelopment analysis (DEA) and regression analysis shall be employed
4.2 Determinants of intellectual capital efficiency in Nigeria banks In determining the factors influencing the intellectual capital efficiency of commercial banks in Nigeria, it is required to establish that the covariates are not strongly correlated to reduce the problems of multicollinearity
Summary
In the last 2 decades, a drastic transition of economies has emerged, from a traditional-driven approach to a more knowledge-intensive driven approach (Ali and Anwar, 2021; Vidyarthi, 2018). Anifowose et al (2018) found that intellectual capital efficiency positively influences firms’ performance for firms in Nigeria. This study contributes to the literature by being the first to measure the degree of efficient utilisation of intellectual capital for commercial banks in Nigeria. Findings emanating from the non-parametric analysis insinuate that listed banks in Nigeria are not technically efficient in utilising intellectual capital. The study employed the DEA and the ordinary least squares (OLS) regression for its analysis for the period between 2006 and 2010 It found that intellectual capital contributes significantly to the firms’ operational efficiency. 3. Data and method of analysis The study employed longitudinal data to examine the determinants of intellectual capital efficiency of listed commercial banks in Nigeria. After all the exclusion criteria are carefully considered, the study considered twelve listed commercial banks as its sample size
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
