Intellectual Capital and Bank Performance in Nigeria: An Empirical Analysis Using Pragmatic Models
S. J. Inyada, PhD

Abstract
There have been some conflicting results on the importance and relationship between intellectual capital and organizational performance especially in Nigeria. While some scholars agree that intellectual capital relates positively and significantly with organizational financial performance and as such accord organizations competitive edge over others, others believe that there are no relationships between intellectual capital and organizational performance and that physical assets still maintain the key determinants of organizational financial performance. Intellectual capital as the knowledge based equity of organizations has attracted a significant amount of practical interest. Although the importance of intellectual capital is constantly increasing, many organizations face the problems of its management, mostly due to measurement difficulties. This study therefore succinctly examines salient issues on the impact of intellectual capital on the financial performance of corporate establishments in Nigeria. Secondary sources of data collection were employed with the help of the Nigerian Stock Exchange Fact Book. The timeframe for this study was five (5) years and five (5) quoted banks out of the listed banks in Nigeria were used based on purposive sampling. It was discovered that intellectual capital positively and significantly impacted on the financial performance of establishments. Also, physical and structural capitals have positive relationship with the financial performance of the organizations studied. It is therefore advanced that a vibrant and robust training and retraining programmes be put in place to ensure the availability of human resources in the right quantity and quality. Physical and structural capitals’ economic and technical capacities should be enhanced to boost the contributions of the human assets .Strategic human resources policies must also be carefully formulated and properly implemented to x-ray the possibility of including human assets in the balance sheet of corporate entities and to promote intellectual capital reporting.

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