Faculty: Management Sciences
Department: Accountancy


Ewereoke, V. N;
Okoye, E;


This study assesses the effect of intellectual capital on performance of firms listed on Nigeria Stock Exchange. three specific objectives were formulated to determine the extent to which intellectual capital affects corporate performance. From the specific objectives, hypotheses were also formulated and to test the hypotheses a sample of forty (40) companies were selected from 213 companies listed on Nigeria Stock Exchange using multi-phases sampling method. The study applied Ex-post Facto Research Design and made use of secondary data sourced from annual reports and accounts of sampled firms and Nigeria Stock Exchange Fact Book. Pulic 1998 Value Added Intellectual Capital Co-efficient (VAIC) model which enable the determination of specific effects of the components of intellectual capital (Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE) and Capital Employed Efficiency (CEE) was adopted and transformed into ordinary least square approach and a multiple regression performed to test the hypotheses at 5% level of significance using E-view statistical software (version 8.0). The analysis of the test shows that Intellectual Capital affects significantly , Company Process measured by ADM/OPA and market to Book value ratio of companies listed on Nigeria Stock Exchange whereas there was no significant effect of Intellectual Capital on Asset Turnover (ATO) . The study therefore recommends among other factors that corporate management should endeavour to provide adequate and conducive working environment, good welfare package reviewing the performance and engaging on regular training and development programmes which will automatically increase the efficiency and productivity of the workforce. Intellectual Capital should be effectively managed to enhance competitive capabilities of companies by determining the mixture of human capital and structural capital assets in order to increase corporate performance. Shareholders should place higher values on companies with greater intellectual capital since this is the main value driver that propels companies to achieve sustainable growth while Nigeria Stock Exchange should demand complementary report on intellectual capital to enable investors make far reaching investment decisions.