Intellectual Capital and Financial Performance of Listed Oil & Gas Companies in Nigeria
DOI:
https://doi.org/10.12775/CJFA.2024.019Keywords
intellectual capital, human capital, structural capital, VAIC, oil and gas firmsAbstract
Intellectual capital is a driving force to performance of many organizations worldwide. This study examines intellectual capital and the corresponding performance of listed oil and gas companies in the Nigeria. The specific objectives are to: (i) examine the influence of Human Capital Efficiency (HCE) on financial performance (Price Earning) (PE) among oil and gas companies in Nigeria; (ii) evaluate the influence of Structural Capital Efficiency (SCE) on Price Earning (PE) among oil and gas companies in Nigeria and (iii) assess the influence of Capital Employed Efficiency (CEE) on Price Earning (PE) among oil and gas companies in Nigeria. This study used a longitudinal research design; and annual reports of sampled twelve oil and gas firms for five years (2018-2022) were collected for analysis. A panel regression was used to analyze the obtained data. The result revealed that Capital Employed Efficiency (CEE) has positive and significant influence on financial performance of listed sampled oil and gas companies in Nigeria. Human Capital Efficiency (HCE) and Structural Capital Efficiency (SCE) do not have any influence on financial performance of the sampled listed oil and gas firms. The study concluded that intellectual capital and financial performance of oil and gas firms in Nigeria are interrelated. Thereby, recommended that oil and gas firms should invest more in physical asset (CEE) as it has capacity in enhancing the financial performances of the sampled firms.
References
Acuna-Opazo, C., & Gonzalez, O.C. (2021). The impact of intellectual capital on financial performance and value-added of the production evidence from Chile, Journal of Economics, Finance and Administrative Science, 26(51), 127-142. https://doi.org/10.1108/JEFAS-08-2019-0178.
Agbi, E.S., Popoola, A., & Edem, D.P. (2020). Human capital efficiency and profitability of listed oil and gas firms in Nigeria. International Journal of Accounting and Finance, 9(1), 47-68.
Ahmad, M. (2011). The impact of corporate governance and intellectual capital on firm's performance and corporate social responsibility disclosure. Pakistan Journal of Commerce and Social Sciences, 12(1), 283-308.
Akben-Selcuk, E. (2016). Factors affecting firm competitiveness: Evidence from an emerging market. International Journal of Financial Studies, 4(9), 1-10. https://doi.org/10.3390/ijfs4020009.
Anyanwu, F.K., Ezu, G.K., Osadume, R.C., & Ananwude, A.C. (2017). Oil and gas industries financing and financial performance in Nigeria: The case of intelligent capital led model. International Journal of Commerce and Management Research, 3(12), 63-73.
Asare, N., Laryea, M.M., Onumah, J.M., & Asamoah, M.E. (2021). Intellectual capital and asset quality in an emerging banking market. Asian Journal of Accounting Research, 6(1), 55-68. https://doi.org/10.1108/AJAR-05-2020-0034.
Beshkooh, M., Maham, K., & Heidarzadeh, S. (2013). Effects of intellectual capital on financial performance with regard to life cycle and the company size. Journal of Basic and Applied Scientific Research, 3(2), 209-217.
Duho, K.C.T., & Agomor, P.E. (2021). Intellectual Capital and Performance among Listed Non- Financial Firms in West Africa. Working Paper. https://doi.org/10.2139/ssrn.3803094.
Grant, R.M. (1996). Towards a knowledge-based theory of a firm. Strategic Management Journal, 17, 109-122. https://doi.org/10.1002/smj.4250171110.
Inyada, S.J. (2018). Intellectual capital and bank performance in Nigeria: An empirical analysis using pragmatic models. American International Journal of Contemporary Research, 8(2), 61-68. https://doi.org/10.30845/aijcr.v8n2p7.
Kpolode, O.P., Edoumiekumo, A.R., & Alfred, A.D. (2020). 11 Plc Formally Mobil Oil Nigeria Plc: A Pre and Post Analysis of Capital Structure and Performance. International Journal of Academic Research in Economics & Management Sciences, 9(2), 81-88. https://doi.org/10.6007/IJAREMS/v9-i2/7545.
Lu, Y., Zengrui, T., Guillermo, A.B., Shuiwen, G., Yuanjun, Z., & Shuan, Z. (2021). Intellectual Capital and Firm Performance in the Context of Venture-Capital Syndication Background in China. Economic and Financial Net. https://doi.org/10.1155/2021/3425725.
Maji, S.G., & Goswami, M. (2017). Intellectual capital and firm performance in India: A comparative study between original and modified value added intellectual coefficient mode, International Journal of Learning and Intellectual Capital, 14(1), 76-89. https://doi.org/10.1504/IJLIC.2017.080645.
Moradi, M., Saeedi, M., Hajizadeh, H., & Mohammadi, M. (2013). The influence of intellectual capital on the improvement of companies’ financial performance. International Journal of Economics, Business and Finance, 1(5), 120-139.
Nonaka, I. & Takeuchi, H. (1995). The knowledge-creating company: How Japanese companies create the dynamics of innovation. New York: Oxford University Press.
Ousama, A.A., Hammami, H., & Abdulkarim, M. (2020). The association between intellectual capital and financial performance in the Islamic banking industry: An analysis of the GCC banks. International Journal of Islamic and Middle Eastern Finance and Management, 13(1), 75-93. https://doi.org/10.1108/IMEFM-05-2016-0073.
Oyedokun, G.E., & Saidu, B. (2018). Impact of Intellectual Capital on Financial Performance of Listed Nigerian Oil Marketing Companies. Information and Knowledge Management, 8(9), 13– 27.
Pulic, A. (1998). Measuring the performance of intellectual potential in knowledge economy. Paper presented at the 2nd World Congress of Measuring and Managing Intellectual Capital, Mc Master University, Hamilton. https://www.bib.irb.hr/35384. (accessed: 02.06.2024)
Salman, R.T. (2022). Intellectual capital on financial performance of Nigerian companies. Jurnal Administrasi Bisnis. 11(2), 13-24. https://doi.org/10.14710/jab.v11i2.44989.
Salman, R.T., & Abogun, S. (2023). Intellectual capital and market performance of Nigerian companies. Copernican Journal of Finance and Accounting, 12(2), 59-78. https://doi.org/10.12775/CJFA.2023.011.
Salman, R.T., Ibrahim., F.A. & Abdulkadir, R.I. (2015). Intellectual capital performance: an empirical investigation of Nigerian banks. Abuja Journal of Banking and Finance, 4(2), 58-66.
Salman, R.T., Olaniyi, T.A., Kasum, A.S., & Fagbemi, T.O. (2014). The Influence of Intellectual Capital Efficiency on Companies’ Financial Performance. Al-Hikmah Journal Management Sciences, 3(1), 47-61.
Shafi’u, A.K., Noraza, M.U., & Saleh, M.B. (2017). 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.
Stam, H. (2007). Theoretical Psychology. In K. Pawlik, M. Rosenzweig (Eds.). The International Handbook of Psychology. London: Sage Publications.
Stewart, T.A. (1997). The wealth of knowledge: Intellectual capital and the twenty-first century organization. Doubleday.
Uwuigbe U., & Uadiale, O.M. (2011). Intellectual capital and business performance: Evidence from Nigeria. Interdisciplinary Journal of Research in Business, 10(1), 49 - 56.
Yousaff, M. (2022). Intellectual capital and firm performance: evidence from certified firms from EFQM excellence model. Total Quality Management and Business Excellence, 33(13-14). https://doi.org/10.1080/14783363.2021.1972800.
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Ramat Titilayo Salman, Aisha Abdulsalam-Gambari
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Stats
Number of views and downloads: 0
Number of citations: 0
