Is intellectual capital a good predicator of stock market value? Evidence from the Nigerian banking sector
by Michael Chidiebere Ekwe; Oliver Ike Inyiama
African J. of Accounting, Auditing and Finance (AJAAF), Vol. 3, No. 3, 2014

Abstract: This study investigated the practicability of using intellectual capitals as a primary business resource to explain the stock market performance of Nigerian banks. The study adopted the ex-post facto research design and applied the value added intellectual coefficient (VAIC) model. The analysis was conducted using time series data obtained from the Nigeria Stock Exchange and from annual reports and accounts of the selected banks from year 2000 to 2011. The multiple regression analysis method was adopted for test of the hypotheses using version 17.0 of SPSS statistical software. The results showed that there is positive and significant relationship between components of VAIC and the market value of the banks (VIAC coefficient = 0.722, R^R_c = 0.987, R^R_t = 0.49, P < 0.05). Consequently, it was thus established that indeed there is a positive and significant effect of the intellectual capitals on the MV of banks in Nigeria. This also agrees with the belief that financial statements do not precisely explain a firm's real value and therefore concludes that the source of economic value in the knowledge economy no longer lie in the creation of goods and services but in the creation of intellectual capitals.

Online publication date: Tue, 31-Mar-2015

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