Intellectual capital efficiency on corporate value creations: evidence from quoted industrial and consumer goods manufacturing firms in Nigeria

This study empirically examined the effect of intellectual capital efficiency on the corporate value created by listed Nigerian industrial and consumer goods manufacturing firms. A correlational longitudinal panel research design was employed by the study. Intellectual capital efficiency was proxied by structural capital efficiency, human capital efficiency, and capital employed efficiency. While corporate value creation was proxied by the market to book value of the firm. Twenty-six (26) of the thirty-four (34) quoted industrial and consumer goods manufacturing companies were selected by means of a purposive sample technique. A panel data regression technique was used to analyse the data taken from the sampled companies' annual reports between the period 2013 to 2022. The results found that structural capital, human capital efficiency, capital employed efficiency and firm size have positive insignificant effect on the market to book value of the sampled firms. Thus, indicates that intellectual capital efficiency has no significant relationship with corporate value of quoted industrial and consumers goods manufacturing companies in Nigeria. The study findings guide corporate managers not to ignore investment in intellectual capital as it may equally have positive effect in order areas in the firm which could in turn affect cost reduction, sales, profitability, and eventually create long-term corporate value. Such areas include customer satisfaction, corporate image, unique skills, process improvement, waste control and competitive advantage. The study unveils the likely significance of intellectual capital management strategies, encompassing practices, policies, and methodologies, on the corporate value created by listed businesses operating in Nigeria’s industrial and consumer goods manufacturing sectors.