Intellectual Capital Value Addition and the Efficient Assets Management of Listed Manufacturing Firms in Nigeria

Madugba Joseph Ugochukwu (), Egbide Ben-Caleb (), Uzondu Anoruoh Paul (), Oparah Vivian Iheaku () and Adesola Deborah Ayomide ()
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Madugba Joseph Ugochukwu: Landmark University, Department of Accounting, College of Business and Social Sciences, Nigeria
Egbide Ben-Caleb: Landmark University, Department of Accounting, College of Business and Social Sciences, Nigeria
Uzondu Anoruoh Paul: Federal Polytechnic, Department of Banking and Finance, School of Business and Management Technology, Nigeria
Oparah Vivian Iheaku: Federal Polytechnic, Department of Accountancy, School of Business and Management Technology, Nigeria
Adesola Deborah Ayomide: Department of Accounting, College of Business and Social Sciences, Nigeria

Folia Oeconomica Stetinensia, 2023, vol. 23, issue 2, 241-260

Abstract: Research background One crucial area that has not received good research attention is intellectual property. Even organizations engage the services of recruiting firms to get the best labour, and some workers earn more than others. But intellectual value addition is not ascertained. Purpose The goal of this study is to examine the effect of intellectual capital value addition on the efficient asset management of manufacturing firms in Nigeria. Research methodology Data was sourced from the published annual accounts of 24 manufacturing firms. The VAIC was adapted to measure Intellectual capital value addition which is the predictor variable, while Return on Assets was used as a determinant of efficient assets management. The ordinary least square regression of the panel data was used to test the hypothesis. Result The outcome of the regression revealed that HC is a determinant of ROA with a co-efficient of regression and a significant value of (0.102 > 0.5). SC has an adverse and noteworthy influence on ROA as indicated (–0.046 > 0.05) while CEE has a positive and significant influence on ROA (0.825 > 0.50). The paper affirmed that a weighty and constructive relationship exists amid intellectual capital and efficient assets management of the manufacturing companies and endorsed that listed manufacturing businesses in Nigeria should efficiently and effectively manage intellectual capital. Novelty This has contributed to extant literature as it’s the first study to investigate the effect of intellectual capital addition on efficient assets management in listed manufacturing companies in Nigeria. There is no study of this nature in Nigeria that has successfully adopted VAIC and it has proved that corporations consider hiring the best-skilled labour because of its contribution which improves the performance of such business. Again, this study covered 240 firm years, that is, ten years each of twenty-four companies, which no other previous study has done.

Keywords: human capital; structural capital; capital employed efficiency; assets management; revenue generation; return on assets (search for similar items in EconPapers)
JEL-codes: M12 M52 M54 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:foeste:v:23:y:2023:i:2:p:241-260:n:16

DOI: 10.2478/foli-2023-0029

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