Intellectual Capital Reporting and Share Price Volatility of Quoted Financial Companies in Nigeria (20012- 2021).

Abstract

This study empirically examined the nexus between intellectual capital and the share price volatility of quoted financial companies in Nigeria from year 2011 to 2021. The sample comprised of thirteen money deposit banks that are listed on the Nigeria stock exchange market over the period between 2011 and 2021. Data from 13 listed banks from 2011-2021 were analyzed using descriptive and inferential statistics. The results showed that advertisement cost had a significant positive effect on share price volatility as a result of p-value of the t-statistics calculated for AD is less than the critical value of 5% (p-values < 0.05), while research and development expenditure did not as a result of p-value of the t-statistics calculated for RD is greater than the critical value of 5% (p-values > 0.05). The p-value of the t-statistics calculated for STVA is greater than the critical value of 5% (p-values > 0.05), Structural Capital Value Added was not significant, while Value Added Capital Employed and Value Added Human Capital positively influenced share price volatility as a result p-value of their t-statistics calculated being less than the critical value of 5% (p-values < 0.05). Control variables of Leverage, Liquidity, and Net Assets were also significant volatility as a result p-value of their t-statistics calculated being less than the critical value of 5% (p-values < 0.05). The P-value of the F-statistics computed for the variables for testing the overall fixed effect of the regression model of 0.000000 was less than the critical value of 5% (p-values < 0.05). The overall result of the finding had revealed that there was a significant relationship between intellectual capital and the share price volatility of quoted financial companies in Nigeria. Therefore, the study recommended that the Nigerian listed deposit money banks should invest more in research and development to improve their competitiveness and increase their share price. Also, human capital and capital employed should be effectively utilized.