Research Articles Open access

The Moderating Effect of Institutional Ownership on Intellectual Capital and Financial Performance of Listed Conglomerates

Authors

  • Isah Umar Kibiya (show author details)

    Isah Umar Kibiya

    Department of Accounting. Al-Qalam University, Katsina , Nigeria, Nigeria

    Corresponding author

  • Bilyaminu Shittu Aminu (show author details)

    Bilyaminu Shittu Aminu

    Jigawa State Polytechnic, Dutse, Jigawa State- Nigeria, Nigeria

  • Khadija Salihu Abubakar (show author details)

    Khadija Salihu Abubakar

    Department of Accounting, Al-Qalam University Katsina. Katsina- Nigeria, Nigeria

Cite

How to Cite

Kibiya, I. U., Aminu, B. S., & Abubakar, K. S. . (2019). The Moderating Effect of Institutional Ownership on Intellectual Capital and Financial Performance of Listed Conglomerates. SEISENSE Journal of Management, 2(5), 20-28. https://doi.org/10.33215/sjom.v2i5.151

More Citation Formats

Download Citation

Share

Share

  • 2,104views
  • 1,606downloads

Abstract

Purpose - The study aims to examine the moderating effect of institution on the relationship between intellectual capital on the financial performance of conglomerates in Nigeria

Design/Methodology - correlational research design which is based on historical data extracted from annual report and accounts of the sample firm on NSE. Firms were chosen based on censor sampling method. Eleven years of financial data were used.  Multiple regression analysis was employed to analyze the data extracted.

Findings - The results from pooled ordinary least square regression (OLS) and Fixed effect revealed that intellectual capital indexed by a value-added intellectual coefficient (VAIC) has a positive and significant impact on financial performance indexed by return on asset (ROA) of listed conglomerate firms in Nigeria. Furthermore, the interaction effect of institutional ownership was found to be positive and significant

Practical Implications - The study recommends that institutional shareholders should invest more in shares of listed conglomerate firms in Nigeria and that management should recognize the effort and understand the importance of intellectual capital toward improving firm performance.

Keywords

Categories

License

Copyright (c) 2019 Isah Umar Kibiya, Bilyaminu Shittu Aminu, Khadija Salihu Abubakar

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Published in

Vol. 2 No. 5 (2019): SEISENSE Journal of Management View Issue

Reads, last 12 months

2025-112026-10

Article history

  1. ReceivedApril 25, 2019
  2. AcceptedJuly 16, 2019
  3. Published August 10, 2019

References

Al-matari, E. M., Hanim, F., Fadzil, B., & Al-swidi, A. K. (2014). The Moderating Effect of Board Diversity on the Relationship Between Board of Directors Characteristics and Firm Performance in Oman : Empirical Study Middle-East Journal of Scientific Research, 21(5), 782–791. https://doi.org/10.5829/idosi.mejsr.2014.21.05.21605

Bontis, N. (1998). Intellectual capital: an exploratory study that develops measures and models. Management Decision, 36(2), 63–76. https://doi.org/10.1108/00251749810204142 DOI: https://doi.org/10.1108/00251749810204142 CrossrefGoogle Scholar

Chidiebere, M., & Ph, E. (2013). The Relationship between Intellectual Capitals and Growth in Revenue of Deposit Money Banks in Nigeria. 4(12), 55–65.

Choudhury, J. (2010). Performance Impact of Intellectual Capital: A Study of Indian it Sector. International Journal of Business and Management, 5(9), 72–80. https://doi.org/10.5539/ijbm.v5n9p72 DOI: https://doi.org/10.5539/ijbm.v5n9p72 CrossrefGoogle Scholar

Ermawati, Y., Noch, M. Y., Ikhsan, A., & Khaddafi, M. (2017). Reconstruction of Financial Performance to Manage Gap between Value Added Intellectual Coefficient ( V AICTM ) and Value of Company in Banking Company Listed in Indonesia Stock Exchange. International of Economics and Financial Issues. 7(4), 537–549.

Garko, J. S. (2015). Corporate Governance Mechanisms and Voluntary Disclosure : Evidence From Listed Industrial Goods Companies in Nigeria.. Being a Thesis Submitted To the School of Post Graduate Studies, Bayero University Kano-Nigeria.

Hayati, M., Yurniwati, & Putra, A. R. (2015). The Effect of Intellectual Capital to Value Relevance of Accounting Information Based on PSAK Convergence of IFRS (Manufacture Firms in Indonesia). Procedia - Social and Behavioral Sciences, 211(January), 999–1007. https://doi.org/10.1016/j.sbspro.2015.11.133 DOI: https://doi.org/10.1016/j.sbspro.2015.11.133 CrossrefGoogle Scholar

Karami, P., Moradi, A., & Rezaie, H. (2015). A comparative between the effect of physical capital and intellectual capital in improving university performance Introduction. International Journal of Business Management : 2(12), 54–63.

Mohammad, H., Bujang, I., & Hakim, T. (2018). The Impact of Intellectual Capital on Financial Performance of Malaysian Construction Firms. International Journal of Academic Research in Business and Social Sciences, 8(5), 173–186. https://doi.org/10.6007/IJARBSS/v8-i5/4093 DOI: https://doi.org/10.6007/IJARBSS/v8-i5/4093 CrossrefGoogle Scholar

Nassar, S. (2018). The Impact of Intellectual Capital on Firm Performance of the Turkish Real Estate Companies Before and After the Crisis. European Scientific Journal, ESJ, 14(1), 29. https://doi.org/10.19044/esj.2018.v14n1p29 DOI: https://doi.org/10.19044/esj.2018.v14n1p29 CrossrefGoogle Scholar

Noradiva, H., Parastou, A., & Azlina, A. (2015). The Effects of Managerial Ownership on the Relationship between Intellectual Capital Performance and Firm Value. International Journal of Social Science and Humanity, 6(7), 514–518. https://doi.org/10.7763/ijssh.2016.v6.702 DOI: https://doi.org/10.7763/IJSSH.2016.V6.702 CrossrefGoogle Scholar

Nuryaman. (2015). The Influence of Intellectual Capital on The Firm’s Value with The Financial Performance as Intervening Variable. Procedia - Social and Behavioral Sciences, 211(January), 292–298. https://doi.org/10.1016/j.sbspro.2015.11.037 DOI: https://doi.org/10.1016/j.sbspro.2015.11.037 CrossrefGoogle Scholar

Ofurum, C. O., & Aliyu, A. S. (2018). Intellectual Capital Component and Financial Performance of Quoted Banks in Nigeria. International Journal of Advanced Academic Research and Financial Management 4(2), 24–46.

Olayiwola, J. A. (2016). Human Capital Accounting Information and Firms’ Value: An Analysis of Selected Quoted Manufacturing Companies in Nigeria (2007-2014). International Journal of Economics, Commerce and Management, IV(5), 14–27. Retrieved from http://ijecm.co.uk/

Onyekwelu, Uche, L., Okoh, Johnson, I., & Iyidiobi. (2017). Effect of Intellectual Capital on Financial Performance of Banks in Nigeria. European Journal of Accounting, Auditing and Finance Research, 5(2), 28–57. Retrieved from www.eajournals.org

Ozkan, N., Cakan, S., & Kayacan, M. (2017). Intellectual capital and financial performance: A study of the Turkish Banking Sector. Borsa Istanbul Review, 17(3), 190–198. https://doi.org/10.1016/j.bir.2016.03.001 DOI: https://doi.org/10.1016/j.bir.2016.03.001 CrossrefGoogle Scholar

Purwaningsih, E. (2018). The Influence of Value Added Intellectual Capital to Financial Performance with Ownership Structure as Moderating Variable. 8(3), 277–290. https://doi.org/10.6007/IJARAFMS/v8-i3/4836 DOI: https://doi.org/10.6007/IJARAFMS/v8-i3/4836

Saifullah, M. A., Mohammed, A., & Usman, S. H. (2015). Ownership Diversity and Corporate Performance: Evidence from Nigerian Conglomerates Firms. Journal of Basic and Applied Research, 1(1), 89–101.

Salman, R. T., & Dandago, K. I. (2013). Intellectual Capital Disclosure in Financial Reports of Nigerian Companies. 1–17.

Sani, A. A. (2016). The Impact Of Ownership Structure and Cash Flow On Dividend Policy in the Nigerian Oil and Gas Industry. Being a Dissertation Submitted To the School of Post Graduate Studies, Bayero University Kano-Nigeria.

Shafi’u, A. K., Noraza, M. U., & Saleh, M. B. (2018). The impact of intellectual capital on the financial performance of listed Nigerian food products companies. Journal of Accounting and Taxation, 9(11), 147–160. https://doi.org/10.5897/jat2017.0246 DOI: https://doi.org/10.5897/JAT2017.0246 CrossrefGoogle Scholar

Uzoma, C., & Rita, N. (2017). Intellectual Capital Management and Organizational Performance in Selected Food and Beverage Companies in Nigeria. International Journal of Advanced Scientific Research and Management, 2(1), 47–58.

Similar articles

Chosen by the keywords and the section they share with this article.