The Moderating Effect of Age and Debt on the Relationship Between Intellectual Capital and Firm Performance: A Developing Country Perspective

Abstract

ABSTRACT Intellectual capital is a significant determinant of firm performance heterogeneity. However, research into the direct relationship between this knowledge base asset and a firm’s performance has produced contradictory results. This paper uses contingency theory to argue that a firm’s age and debt are moderators in this relationship. The study sought to investigate the moderating effects of age and debt on the relationship between intellectual capital and firm performance measures from the perspective of a developing country. The study used data from the financial statements of companies listed on the Nigerian stock exchange between 2014 and 2018. According to the regression results, age and debt are significant moderators of this relationship. The findings show that older companies outperform younger companies in using intellectual capital as a performance driver. Companies with higher financial capabilities outperform companies with fewer capabilities. The study concluded with a discussion of the study’s implications, contribution, and future research directions.