MODERATING EFFECT OF BOARD FINANCIAL EXPERTISE ON THE RELATIONSHIP BETWEEN INTELLECTUAL CAPITAL AND MARKET VALUE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
Keywords:
Intellectual capital, Human capital, Structural capital, Relational capital, Market valueAbstract
The global economic environment has witnessed a transformation from a traditional tangible to a new intangible economy due to globalization, and the exponential growth of technological changes. The new economy, which has been tagged as a knowledge-based economy, can improve the competitive advantage of organizations. Intellectual capital is knowledge assets which belong to an entity and most importantly capable of improving the competitive power of the entity by adding value to the corporate organization. It is based on this that the study examined moderating effect of board financial expertise on the relationship between intellectual capital and market value of listed deposit money banks in Nigeria from 2011-2020. The study adopts an ex-post facto research design and intellectual capital is measured by human capital, structural capital and relational capital efficiency while market value is measured by market value added. Panel multiple regression is used for the analysis. From the analysis, the study found that human capital efficiency has a positive but insignificant effect on market value added, structural capital efficiency has a positive significant effect on market value added, and; relational capital efficiency has a negative but insignificant effect on market value added. Furthermore, moderated human capital efficiency has a positive significant effect on market value added, moderated structural capital efficiency has a negative significant effect on market value added while moderated relational capital efficiency has a positive but insignificant effect on market value added. Based on the finding, the study recommends that banks should pay sufficient attention to human capital since it is considered the most significant asset to the company by implementing policies that will enhance and upgrade their employees' skills and competence in the area of training and development.
