Intellectual Capital and Performance of Financial Institutions Quoted in the Nigerian Stock Exchange

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Published: 2024-03-18

Page: 101-114

Ofierohor Ufuoma Earnest *

Department of Economics, University of Port Harcourt, Nigeria.

Emeka Okereke

University of Port Harcourt Business School, Nigeria.

Ayeni Elizabeth Oluwadamilola

University of Port Harcourt Business School, Nigeria.

*Author to whom correspondence should be addressed.


This study investigated the influence of various dimensions of intellectual capital on financial institutions’ performance measured by their profit after tax over the study period of 2010 to 2023. The study employed the stationarity test, the panel regression test in its pooled, random, and fixed effects variants, followed by the co-integration test, error correction model, and stacked Granger Causality model. It was discovered that Human Capital and Green Intellectual Capital Expenditures have a positive and significant influence on Profit after selecting financial institutions. However, an inverse but insignificant influence of Structural capital expenditure on Profit after Tax in the selected financial institutions was found. The study also found a negative and significant influence of Relational capital on Profit after Tax in the selected financial institutions. It is recommended that financial institutions should re-evaluate their provisions on structural capital and relational capital which have not fared well in this study. Consequently, the need to formulate an appropriate investment policy on intellectual capital that would cover the identified components becomes not only important but urgent. Judicious application of the provisions to the various components should not only be pursued vigorously but seen as very fundamental to the profitability of financial institutions.

Keywords: Intellectual capital, profit after tax, human capital expenditure, structural capital expenditure, relational capital expenditure & green Intellectual capital

How to Cite

Earnest, O. U., Okereke, E., & Oluwadamilola, A. E. (2024). Intellectual Capital and Performance of Financial Institutions Quoted in the Nigerian Stock Exchange. Asian Journal of Economics, Finance and Management, 6(1), 101–114. Retrieved from


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