INTELLECTUAL CAPITAL AND PERFORMANCE OF DEPOSIT MONEY BANKS IN SOME SELECTED AFRICAN COUNTRIES

INTELLECTUAL CAPITAL AND PERFORMANCE OF DEPOSIT MONEY BANKS IN SOME SELECTED AFRICAN COUNTRIES

Rosemary Edememen UAGBALE-EKATAH

Department of Accounting,

Faculty of Social and Management Sciences,

Benson Idahosa University. Benin City, Edo State

08061645461, rosemary_ekatah@yahoo.com

Christmas Darlington .I. OFURUM

Department of Accounting/Banking and Finance,

Alex Ekwueme Federal University, Ebonyi State

Abstract

The study examined the effect of intellectual capital on firm performance of some selected countries in Africa including Nigeria, South Africa, Kenya and Mauritius. The objective of the study was to determine the effect of intellectual capital which was proxy by value added intellectual coefficient (VAIC) on return on asset and market value added which were proxies for firm performance. The population of study constituted forty two banks in the four countries of which twenty four banks were drawn using purposive sampling technique. Secondary source was used to obtain data for analysis through stock exchange publications of the selected countries. The scope covered was over nine years from 2012 – 2020. Multiple regression statistical tool was employed for analysis with the aid of SPSS statistical software 21. Findings from analysis revealed that intellectual capital has a positive and significant effect on return on asset in Nigeria, South Africa and Mauritius but for market value added a positive and significant effect was found only in Nigeria, Kenya and Mauritius. Based on this, we therefore recommend that, banks should strive to improve intellectual capital reporting to attract investors in order to enhance performance and future growth potentials. Also, there should be constant review and modifications as a way of maintaining good performance indices because intellectual capital requires continuous update due to technological advancement.

Keywords: Intellectual capital, Firm performance and Market value added

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Uagbale-Ekatah, R.E & Ofurum, C.D.I (2022). Intellectual Capital and Performance of Deposit Money Banks in some Selected African Countries. International Journal of Advanced Academic Research, 8(1), pp1-12. Available online at: https://www.ijaar.org/articles/v8n1/ijaar-v8n1-Jan22-p811.pdf.

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