EFFECT OF INTELECTUAL CAPITAL ON RETURN ON ASSETS OF INSURANCE FIRMS IN NIGERIA

Intellectual Capital (IC) needs to be measured by insurance entities. The inability of firms to measure and quantify intellectual capital has posed fundamental problems overtime in the value measurement of firms. This study evaluates the effect of HC and IC on the value creation of insurance firms in Nigeria using their ROA. Ex-post facto research design was adopted using primary and secondary data. The target population consisted of 150 workers in the 3 strategic departments of human resources, accounts and marketing of 18 insurance companies using purposive sampling technique. 150 questionnaires were distributed and a response rate of 74% was recorded. Face validity, content validity and pilot test were used to validate the instruments. The Cronbach’s Alpha reliability test gave a result of (r=0.806) and (r=0.800) respectively. Regression was used for data analyses at 5% level of significance. Results obtained from the primary data revealed that structural capital had significant positive effect on ROA at (P