Title: Is intellectual capital a good predicator of stock market value? Evidence from the Nigerian banking sector
Authors: Michael Chidiebere Ekwe; Oliver Ike Inyiama
Addresses: Department of Accountancy, Enugu State University of Science and Technology, Enugu State, Nigeria ' Department of Accountancy, Enugu State University of Science and Technology, Enugu State, Nigeria
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, RRc = 0.987, RRt = 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.
Keywords: intellectual capital; human capital; structural capital; stock market value; value added intellectual coefficient; VAIC; Nigeria; banking industry; stock market performance; financial statements; firm value; knowledge economy; banks; bank performance.
African Journal of Accounting, Auditing and Finance, 2014 Vol.3 No.3, pp.209 - 223
Received: 08 May 2021
Accepted: 12 May 2021
Published online: 19 Mar 2015 *