Relevance Of Intellectual Capital On Firms’ Revenue And Market Valuation Of Quoted Information & Communication Technology(Ict) Industry In Nigeria
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 3
Abstract
This paper assessed the effect of intellectual capital on revenue and market values of firms in information and communication technology firms in Nigeria. Human Capital , Structural Capital and Capital Employed were the proxies for Intellectual capital while Fims’s Gross Revenue and Markket Price per Share were bases for measuring earnings and market values respectively.The study adopted the ex post facto research design as data used were secondary. The data were sourced from annual reports and accounts of three firms selected from the industry under study. Data were analysed using the Ordinary Linear Regression. Data for the study covered the ten years spanning 2004-2013.The study shows that Intellectual capital as measured by Human Capital Efficiency, Structural Capital Efficiency(SCE) and Capital Employed Efficiency(CEE) has positive and insignificant relevance on revenue of ICT firms in Nigeria. However, Human Capital Efficiency has positive and insignificant relevance on share price of ICT firms in Nigeria but Structural Capital Efficiency(SCE) and Capital This outcome implies that any additional investment of the firms to increase HCE, SCE and CEE will increase revenue insignificantly. Again , increase investment in HCE suggest an insignificantly enhance share price of the industry while increase in SCE and CEE will lead to significant decrease in Share Price of the firms studied.. The paper thus recommends that firms in the industry enhances efficiency and productivity of human capital and capital employed to grow both revenue and share price while they moderate expenses on SC and CE to achieve optimal revenue and share price of the firms in Nigeria.
Authors and Affiliations
Ugwuanyi Uche Borniface Phd, Onyekwelu Uche Lucy Phd
Keywords
Related Articles
- EP ID EP414845
- DOI 10.9790/5933-0903030119.
- Views 228
- Downloads 0
Tax Amnesty Policy in Order to Achieve Awareness and Compliance of Taxpayer in Bali Province, Indonesia
One form of government efforts to boost tax receipts as well as to raise awareness and tax compliance in Indonesia, on July 1, 2016 to March 31, 2017 implemented a program called tax amnesty. Implementation of tax amnest...
Private Domestic Investment, Domestic Credit To The Private Sector And Economic Performance: Nigeria In Perspective.
This study examines the dynamic linkages between domestic investment, domestic credit to the private sector and gross domestic product (GDP) in Nigeria over the period of 1970 to 2015. The main objective of the study is...
The Effect of Cash Reserve Ratio and Reverse Repo Rate on Stock Market Performance - Empirical Evidence from India
A stock market is a place where shares of public listed companies are traded. Trade in stock markets means the transfer for money of a stock or security from a seller to a buyer. The stock market is often considered the...
Capital Structure of Moroccan Non-Financial Listed Companies: Dynamic Analysis on Panel Data
The question of choice of capital structure is one of the fundamental questions in the field of financial management. The purpose of this article is to study the factors determining the capital structure of Moroccan non-...
An Evaluation of Factors influencing Loan Default among Group Borrowers of Deposit Taking Microfinance Banks in Kenya
Microfinance is provision of small amount of institutional credit and saving to jointly liable low income people, who are unable to obtain loans from formal sector banks for lack of collateral. There has been a decrease...