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Effect of Intellectual Capital on the Profitability of Nigerian Deposit Money Banks

. International Journal of Trend in Scientific Research and Development, 4 (3): 146-158 (March 2020)

Abstract

This study assessed the effect of intellectual capital on the profitability of Nigerian deposit money banks. The specific objectives are To ascertain the effect of Structural Capital Efficiency SCE on the profitability of Nigerian deposit money banks to determine the effect of Human Capital Efficiency Coefficient HCE on the profitability of Nigerian deposit money banks and to examine the effect of Capital Employed Efficiency Coefficient CEE on the profitability in Nigerian deposit money banks. The study adopted Ex post Facto research design. The study used sample of fifteen 15 Nigerian deposit money banks quoted on the Nigerian Stock Exchange from 2010 to 2018 The data for the study was collected from annual reports and accounts of the deposit money banks quoted on the Nigerian Stock Exchange. Regression analysis was employed to test the formulated hypotheses with the aid of e view version 9.0. The study revealed that Structural Capital Efficiency SCE has positive significant effect on the profitability of Nigerian deposit money banks. The study also revealed that Human Capital Efficiency Coefficient HCE has positive effect on the profitability of Nigerian deposit money banks, but is not statistically significant. In addition, Capital Employed Efficiency Coefficient CEE has positive effect on the profitability of Nigerian deposit money banks, but is not statistically significant. The study therefore recommended among others that Banks in Nigeria especially the Deposit Money Banks should adopt an intellectual capital strategy. This can be done by banks adding the position of Chief Intellectual Capital Management Officer CICMO on their organizational chart to help in structuring relevant strategies and policies on how to obtain and best utilize the required resources underlying IC. Okeke, Ifeanyi V | Udeh Francis N "Effect of Intellectual Capital on the Profitability of Nigerian Deposit Money Banks" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-3 , April 2020, URL: https://www.ijtsrd.com/papers/ijtsrd30333.pdf

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