Effect of Intellectual Capital on Financial Performance of Quoted Deposit Money Banks in Nigeria (2010-2015)

The objective of this study is to determine the effect of intellectual capital on the financial performance of quoted commercial banks in Nigeria. This study adopted panel data analysis of all the banks quoted on the Nigerian Stock Exchange as at 31st December 2015 for a period of six years (2010 – 2015). This allows for comparison of the performance of intellectual capital indices among the firms considered in this study. The population is made up of the 15 banks listed on the floor of the Nigerian Stock Exchange as at 31st December, 2015. This study made use ex-post facto research design. Data were gotten from secondary sources obtained from fact books, annual reports and accounts of the selected quoted commercial banks in Nigeria as at 31st December, 2015. The relevant data obtained were subjected to statistical analysis using Pearson coefficient of correlation, ordinary least square regression, heteroskedasticity test and Hausman test. The analysis of data was done using the Value Added Intellectual Coefficient (VAIC) made to measure the efficiency of value added of tangible and intangible assets used by a firm in its operation. The results of this study revealed that there is a positive and statistically significant relationship between Intellectual Capital and financial performance of deposit money banks in Nigeria at 5% level of significance. The researcher recommends the recognition of intellectual capital as an important business resource