Intellectual Capital Potency and Firm Value in Nigeria; Evidence from Listed Nonfinancial Firms in Nigeria

Abstract

The objective of this paper is to investigate the influence of intellectual capital potency on firm value of non-financial firms in Nigeria. This study uses analysis technique to measure ICD. Secondary data were obtained from the Audited account reports of selected non financial firms and Nigerian exchange factbook for the period 2011-2020.This study selected 76 firms out of 107 quoted firms in non-financial sector of Nigerian economy using simple purposive sampling method. The 76 firms were analyzed using regression analysis. The results shows that there is negative influence of capital employed efficiency on firm value while human capital employed efficiency have positive but no significant influence on firm value. The moderating variables of firm size (FISZ) have negative and significant influence, while firm age (FIRA) has positive and non significant influence on firm value of non- financial firms in Nigeria. The findings enhanced the knowledge base of intellectual capital in emerging economies such as Nigeria. Based on the findings this study recommended that, the human capital component of intellectual capital should be trained and educated regularly, innovated, nurture capacity, creativity, know-how and previous experience, teamwork capacity, employee flexibility, tolerance for ambiguity, motivated, satisfied, so as to enhance the usefulness of its output to total input. Also firm specific growth and sustainability policy should strongly placed using corporate governance code and other enhanced internal structural innovative processed to ensure that the firm does not extinct.