INTELLECTUAL CAPITAL AND FINANCIAL PERFORMANCE OF LISTED OIL MARKETING COMPANIES IN NIGERIA

This study examined the impact of intellectual capital (IC) on financial performance of listed oil marketing companies in Nigeria covering the periods 2004 to 2013. Return on assets (ROA), return on equity (ROE), economic value added (EVA) and future growth value (FGV) were used as proxies for financial performance; while market to book value ratio (ICMB), calculated intangible value (ICCIV), monetary model of Tobin’s Q (ICMMQR), return model (ICRM), and value added intellectual coefficient (ICVAIC) were adopted to measure IC. Physical assets intensity and financial leverage were used as control variables. Ten years audited financial statements of six out of the ten companies listed on the floor of the Nigerian Stock Exchange as at 31 December, 2013 were used to generate the data for the study and analyzed using multiple regression via Stata version 12. Multiple regression results of the four models indicate mixed results. In model one, ICMB, ICRM and ICVAIC were found to be positively and significantly related with ROA; results from model two established that ICMB and ICRM are directly and significantly related with ROE, and ICVAIC is also directly but insignificantly related with the dependent variable, but for ICMMQR, the relationship is negative and insignificant. The IC measures (ICMB, ICCIV, ICMMQR, ICRM and ICVAIC) considered in model three, have direct and significant influence on EVA, except ICMMQR. However, in model four, only ICMB and ICMMQR affect FGV in positive direction while ICCIV, ICRM, and ICVAIC negatively and significantly impacted on FGV. The study recommends that Nigerian listed oil marketing companies should concentrate more on maximization of their total market valuation, maximization of IC return and increased investment in IC components with a view to enhancing their financial performance.