The Moderating Effect of Institutional Ownership on Intellectual Capital and Financial Performance of Listed Conglomerates
Article Sidebar
Main Article Content
Abstract
Purpose - The study aims to examine the moderating effect of institution on the relationship between intellectual capital on the financial performance of conglomerates in Nigeria
Design/Methodology - correlational research design which is based on historical data extracted from annual report and accounts of the sample firm on NSE. Firms were chosen based on censor sampling method. Eleven years of financial data were used. Multiple regression analysis was employed to analyze the data extracted.
Findings - The results from pooled ordinary least square regression (OLS) and Fixed effect revealed that intellectual capital indexed by a value-added intellectual coefficient (VAIC) has a positive and significant impact on financial performance indexed by return on asset (ROA) of listed conglomerate firms in Nigeria. Furthermore, the interaction effect of institutional ownership was found to be positive and significant
Practical Implications - The study recommends that institutional shareholders should invest more in shares of listed conglomerate firms in Nigeria and that management should recognize the effort and understand the importance of intellectual capital toward improving firm performance.
Downloads
Article Details
Copyright (c) 2019 Isah Umar Kibiya, Bilyaminu Shittu Aminu, Khadija Salihu Abubakar
This work is licensed under a Creative Commons Attribution 4.0 International License.
Al-matari, E. M., Hanim, F., Fadzil, B., & Al-swidi, A. K. (2014). The Moderating Effect of Board Diversity on the Relationship Between Board of Directors Characteristics and Firm Performance in Oman : Empirical Study Middle-East Journal of Scientific Research, 21(5), 782–791. https://doi.org/10.5829/idosi.mejsr.2014.21.05.21605
Bontis, N. (1998). Intellectual capital: an exploratory study that develops measures and models. Management Decision, 36(2), 63–76. https://doi.org/10.1108/00251749810204142 DOI: https://doi.org/10.1108/00251749810204142
Chidiebere, M., & Ph, E. (2013). The Relationship between Intellectual Capitals and Growth in Revenue of Deposit Money Banks in Nigeria. 4(12), 55–65.
Choudhury, J. (2010). Performance Impact of Intellectual Capital: A Study of Indian it Sector. International Journal of Business and Management, 5(9), 72–80. https://doi.org/10.5539/ijbm.v5n9p72 DOI: https://doi.org/10.5539/ijbm.v5n9p72
Ermawati, Y., Noch, M. Y., Ikhsan, A., & Khaddafi, M. (2017). Reconstruction of Financial Performance to Manage Gap between Value Added Intellectual Coefficient ( V AICTM ) and Value of Company in Banking Company Listed in Indonesia Stock Exchange. International of Economics and Financial Issues. 7(4), 537–549.
Garko, J. S. (2015). Corporate Governance Mechanisms and Voluntary Disclosure : Evidence From Listed Industrial Goods Companies in Nigeria.. Being a Thesis Submitted To the School of Post Graduate Studies, Bayero University Kano-Nigeria.
Hayati, M., Yurniwati, & Putra, A. R. (2015). The Effect of Intellectual Capital to Value Relevance of Accounting Information Based on PSAK Convergence of IFRS (Manufacture Firms in Indonesia). Procedia - Social and Behavioral Sciences, 211(January), 999–1007. https://doi.org/10.1016/j.sbspro.2015.11.133 DOI: https://doi.org/10.1016/j.sbspro.2015.11.133
Karami, P., Moradi, A., & Rezaie, H. (2015). A comparative between the effect of physical capital and intellectual capital in improving university performance Introduction. International Journal of Business Management : 2(12), 54–63.
Mohammad, H., Bujang, I., & Hakim, T. (2018). The Impact of Intellectual Capital on Financial Performance of Malaysian Construction Firms. International Journal of Academic Research in Business and Social Sciences, 8(5), 173–186. https://doi.org/10.6007/IJARBSS/v8-i5/4093 DOI: https://doi.org/10.6007/IJARBSS/v8-i5/4093
Nassar, S. (2018). The Impact of Intellectual Capital on Firm Performance of the Turkish Real Estate Companies Before and After the Crisis. European Scientific Journal, ESJ, 14(1), 29. https://doi.org/10.19044/esj.2018.v14n1p29 DOI: https://doi.org/10.19044/esj.2018.v14n1p29
Noradiva, H., Parastou, A., & Azlina, A. (2015). The Effects of Managerial Ownership on the Relationship between Intellectual Capital Performance and Firm Value. International Journal of Social Science and Humanity, 6(7), 514–518. https://doi.org/10.7763/ijssh.2016.v6.702 DOI: https://doi.org/10.7763/IJSSH.2016.V6.702
Nuryaman. (2015). The Influence of Intellectual Capital on The Firm’s Value with The Financial Performance as Intervening Variable. Procedia - Social and Behavioral Sciences, 211(January), 292–298. https://doi.org/10.1016/j.sbspro.2015.11.037 DOI: https://doi.org/10.1016/j.sbspro.2015.11.037
Ofurum, C. O., & Aliyu, A. S. (2018). Intellectual Capital Component and Financial Performance of Quoted Banks in Nigeria. International Journal of Advanced Academic Research and Financial Management 4(2), 24–46.
Olayiwola, J. A. (2016). Human Capital Accounting Information and Firms’ Value: An Analysis of Selected Quoted Manufacturing Companies in Nigeria (2007-2014). International Journal of Economics, Commerce and Management, IV(5), 14–27. Retrieved from http://ijecm.co.uk/
Onyekwelu, Uche, L., Okoh, Johnson, I., & Iyidiobi. (2017). Effect of Intellectual Capital on Financial Performance of Banks in Nigeria. European Journal of Accounting, Auditing and Finance Research, 5(2), 28–57. Retrieved from www.eajournals.org
Ozkan, N., Cakan, S., & Kayacan, M. (2017). Intellectual capital and financial performance: A study of the Turkish Banking Sector. Borsa Istanbul Review, 17(3), 190–198. https://doi.org/10.1016/j.bir.2016.03.001 DOI: https://doi.org/10.1016/j.bir.2016.03.001
Purwaningsih, E. (2018). The Influence of Value Added Intellectual Capital to Financial Performance with Ownership Structure as Moderating Variable. 8(3), 277–290. https://doi.org/10.6007/IJARAFMS/v8-i3/4836 DOI: https://doi.org/10.6007/IJARAFMS/v8-i3/4836
Saifullah, M. A., Mohammed, A., & Usman, S. H. (2015). Ownership Diversity and Corporate Performance: Evidence from Nigerian Conglomerates Firms. Journal of Basic and Applied Research, 1(1), 89–101.
Salman, R. T., & Dandago, K. I. (2013). Intellectual Capital Disclosure in Financial Reports of Nigerian Companies. 1–17.
Sani, A. A. (2016). The Impact Of Ownership Structure and Cash Flow On Dividend Policy in the Nigerian Oil and Gas Industry. Being a Dissertation Submitted To the School of Post Graduate Studies, Bayero University Kano-Nigeria.
Shafi’u, A. K., Noraza, M. U., & Saleh, M. B. (2018). The impact of intellectual capital on the financial performance of listed Nigerian food products companies. Journal of Accounting and Taxation, 9(11), 147–160. https://doi.org/10.5897/jat2017.0246 DOI: https://doi.org/10.5897/JAT2017.0246
Uzoma, C., & Rita, N. (2017). Intellectual Capital Management and Organizational Performance in Selected Food and Beverage Companies in Nigeria. International Journal of Advanced Scientific Research and Management, 2(1), 47–58.