INTELLECTUAL CAPITAL COSTS AND MARKET PERFORMANCE OF LISTED SERVICE COMPANIES IN NIGERIA

INTELLECTUAL CAPITAL
COSTS AND MARKET
PERFORMANCE OF LISTED
SERVICE COMPANIES IN
NIGERIA
Eke Onyekachi Abaa, Michael
Chidiebere Ekwe & Okeudo
Ogbenyealu Mercy
Department of Accounting
Michael Okpara University of
Agriculture, Umudike, Abia State,
Nigeria
ABSTRACT
The study examines the effect of
intellectual capital costs on market
performance of listed services firms in
Nigeria. Ex-post facto research design was
adopted. Data on capital employed
efficiency, human capital, structural
capital, dividend per share (DPS) and
earnings per share (EPS) were collected
from published annual reports of 24 listedBook of Abstract
services firms for a period of 10 years
(2009 to 2018). Unit root test, descriptive
statistics and panel regression were used
to analyze the data. Results reveal that
capital employed efficiency, human capital
and structural capital have positive but
insignificant effect on DPS of listed
services firms in Nigeria. However, capital
employed efficiency and human capital
were
found to have positive and
insignificant effect on EPS while structural
capital
showed a negative and
insignificant effect on EPS of listed service
firms in Nigeria. The study concludes that
identified components of intellectual
capital cost are important success factors
for enhancing market performance of
service companies and should be properly
handled for the attainment of corporate
goals. The study recommends among
others that listed service firms in Nigeria
should prioritize the welfare of its
workforce to position the companies for
improved performance in the long run.
Key words: Intellectual capital costs; capital
employed efficiency; human capital;
structural capital; dividend per share,
earnings per share.

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