Citation:

Mohammed Abba, Ibrahim Hamidu, Mohammed Mahmud Kakanda, Bilyaminu Yusuf Hanga. "Intellectual Capital, Financial Performance, and Enterprise Value of Listed Technological Companies in Nigeria" International Research Journal of Economics and Management Studies, Vol. 2, No. 2, pp. 181-191, 2023.

Abstract:

The contribution and roles played by Intellectual Capital; Financial Performance on Enterprise Value have been generating a lot of attention in recent times. As a result, this study looked at the impact of financial performance and intellectual capital on the enterprise value of listed technical businesses in Nigeria. For the period from 2012 to 2020, a working population of seven out of nine enterprises was chosen. The research employed secondary data. Value Added Intellectual Coefficient (VAIC) was employed as a proxy for intellectual capital, whereas Return on Asset (ROA) and Return on Investment (ROI) were used to represent financial success. The dependent variable was Enterprise Value (EV). Control variables included firm size (FS), financial leverage (LEV), and physical capital intensity (PCI). The study's findings, which were determined using correlation and multiple regression analysis, indicate that Intellectual Capital and Leverage have a negative and significant impact on enterprise value; Return on Asset plays a negative and insignificant role; Return on Investment, Firm Size, and Physical Capital Intensity has a positive and significant role; and Return on Asset plays a negative and insignificant role. The study, therefore, recommended that firms in the Nigerian technological sector should: Expose employees to an industrial-based seminar, and training; opt for equity financing instead of debt. Similarly, firms should fully utilize their assets for operations and dispose of idle assets while proceeds from such disposal should be utilized to finance other profitable investments with a view to enhancing the firms’ value.

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Keywords:

Intellectual Capital, Financial Performance, and Enterprise Value.