INTELLECTUAL CAPITAL AND ECONOMIC VALUE ADDED IN NIGERIAN DEPOSIT MONEY BANKS: THE MODERATING ROLE OF BANK SIZE

Abstract

This paper examines the impact of intellectual capital on economic value added of listed deposit money banks in

Nigeria. To achieve this objective, human capital, structural capital and relational capital were used as proxies for

intellectual capital while economic value added was used to measure performance. Data were collected from

financial statements of the 14 deposit money banks listed by the Nigerian Exchange Group selected using Census

Sampling technique. The data collected were analysed using descriptive statistics, correlation analysis and the

dynamic GMM panel. The study findings revealed that human capital has significant positive impact on economic

value added with p-values of 0.0029, structural capital has negative and significant impact on EVA of listed DMBS

in Nigeria with p-values of 0.0001, while bank size as a moderating variable has positive and significant influence

on EVA. The study recommends that, DMBs in Nigeria should intensify investment in human capital by injecting

more resources for digital skills, and leadership training as well as knowledge refreshing strategies, and further

suggests for smaller banks to embrace collaboration with larger ones to benefit from the economies of scale. More

so, Nigerian DMBs should reassess their customer relations strategies with a view to ensuring that customer loyalty,

brand goodwill, as well as engagement with stakeholders are optimally translated to measurable economic benefits.