Effect of Intellectual Capitals on Employee Productivity of Banks in Developing Economies: The Nigeria Experience

In recent times, a new high technology, information, and innovation based environment has gradually taken the centre stage in the global economy particularly in the banking sector. The Nigeria banking sector has responded appropriately to the introduction of these new technologies and innovations. Under this new dispensation, knowledge, ability, skills, experience and attitude of workers, assume greater significance even as organizations use intellectual capital as a critical resource to enhance their performances. Service firms as well as manufacturing organisations use intellectual capital with their physical assets to sharpen their competitive edge while organizations which have managed their intellectual capital better, are observed to have achieved stronger competitive advantage than the general enterprises. Following from above, it is expected that intellectual capital should have positive effect on Employee Productivity. Empirical records of studies on this effect in some developed nations showed divergent views. Unfortunately, no empirical records on the effect of intellectual capital and Employee Productivity in the Nigeria banking sector exist. This study therefore uses the Value Added Intellectual Coefficient (VAIC) model to investigate the effect of the Intellectual Capital indices (i.e. Human Capital Efficiency, Structural Capital Efficiency and the Capital Employed Efficiency) on the Employee Productivity of banks in Nigeria. The data were collected from the annual reports of six banks and analysis was conducted using longitudinal time series data generated from the annual reports and accounts of the selected banks in Nigeria spanning from year 2000 to 2011. The multiple regression analysis method was adopted for the test of the hypothesis. The SPSS statistical software (version 17.0) was used for the data analysis. The study showed that there was a positive and significant relationship between components of VAIC and employee productivity of the banks in Nigeria (VIAC coefficient = 1.186, R2c = 0.806, R2t = 0.49, P < 0.05). From the result stated above, it is thus established that indeed intellectual capital has positive and significant effect on Employee Productivity of banks in Nigeria. Keywords: Intellectual Capital, Human Capital, Structural Capital, Employee Productivity, Nigeria, VAIC

The Relationship between Intellectual Capitals and Growth in Revenue of Deposit Money Banks in Nigeria

In today’s business world, most organisations are established for the purposes of making profit and giving a high return on the investments of stakeholders. The extent an organisation can go in achieving this onerous objective depends on the amount of revenue such organisation is able to generate from its operations as there seem to be a direct relationship between the level of revenue generated and the amount of profit made by an organisation. There has been this belief that it is the amount of physical resources (assets and finance) invested in a firm that determines the amount of profit the firm makes. The use of high technology, information, and innovation based environment in recent times, has taken the centre stage in the global economy. Under this new technology, knowledge, ability, skills, experience and attitude of workers, assume greater significance even as organizations utilize their intellectual capital as a critical resource to enhance their performances. Organisations nowadays use their intellectual capital in combination with their physical assets to sharpen their competitive edge against their competitors. Organizations which have managed their intellectual capital better, are observed to have achieved stronger competitive advantage than the general enterprises. Following from above, it is expected that there should be a positive relationship between intellectual capital and growth in revenue of banks in Nigeria. Empirical records of studies on this relationship in some developed nations showed divergent opinions. Unfortunately, no empirical records on the relationship of intellectual capital and growth in revenue in the Nigeria Banking sector exist. This study had the broad objective of using the Value Added Intellectual Coefficient (VAIC) model to investigate if there is a positive and significant relationship between the Intellectual Capital indices (such as Human Capital Efficiency, Structural Capital Efficiency and the Capital Employed Efficiency) and growth in revenue of selected banks in Nigeria. The study adopted the ex-post facto research design. It was systematically conducted using longitudinal time series data generated and computed from the annual reports and accounts of the selected banks in Nigeria spanning from year 2000 to 2011. The hypotheses of the study were: (i) The performance of the human capital efficiency (HCE) of a bank, do not positively and significantly affect the Growth in Revenue (GR) of the Banks in Nigeria. (ii)  The performance of the structural capital efficiency (SCE) of a bank in Nigeria, do not positively and significantly affect the Growth in Revenue (GR) of the Banks in Nigeria. (iii) The performance of the capital employed efficiency (CEE) of a bank in Nigeria, do not positively and significantly affect the Growth in Revenue (GR) of the Banks in Nigeria. The dependent variables was Growth in Revenue, while the independent variables were the components of Value Added Intellectual Capital {Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE) and the Capital Employed Efficiency (CEE)}. The multiple regression analysis method was adopted for the test of all the hypotheses. The SPSS statistical software (version 17.0) was used for the data analysis. The results showed that there was positive and significant relationship between components of VAIC and the growth in revenue of the banks in Nigeria (VIAC coefficient = 14.160, R2c = 0.87, R2t = 0.49, P < 0.05). From the results stated above, it is thus established that indeed there is a positive and significant relationship between intellectual capital and growth in revenue of banks in Nigeria. Keywords: Intellectual Capital, Human Capital, Structural Capital, Growth in Revenue, Nigeria, VAIC.

Intellectual Capital and Financial Performance in an Emerging Economy: An Empirical Investigation of a Nigerian Bank

The general belief that employees of an organization are important assets to that organization has not been empirically proved as not many studies have investigated the relationship or association between the intellectual capital components and the organizational  performance indices

Is CAPM A Good Predictor Of Stock Return In The Nigerian Chemical And Paints Stocks?

This research is on testing the predictive power of Capital Asset Pricing Model (CAPM) as enunciated by Sharpe (1964) in the determination of the required rates of return of Nigerian chemical and paints stocks that coincides with the actual rates of return. As it were, there is no clear cut understanding on the belief with particular reference to Nigerian chemical and paints stocks. In the light of the above assertion, the objective of this study is to find out the required rate of return of Nigerian chemical and paints stocks from 2000-2012 and compare them with the actual rates of return in the corresponding periods to indentify the valuation status of the stocks. Being an empirical study, analytical research design was adopted. The data used were secondary data, which were collected from the financial statements of the firms, The Nigerian Stock Exchange publications, and Central banks of Nigeria publications. The findings show that the Capital Asset Pricing Model (CAPM) as enunciated by Sharpe (1964) did not give any appropriate forecast of the returns from the Chemical and Paints sector stocks throughout the thirteen-year period of study. The CAPM made thirty-one under-valuations and sixty-five overvaluations to make a total of ninety-six misappropriations in the thirteen years period of study. Therefore, the Capital Asset Pricing Model (CAPM) is not a good predictor of stock return in the Chemical and Paints sector of the Nigerian Stock Exchange. Keywords: historical equity market risk premium, historical equity beta, required rate of return to equity, actual market return, actual stock return

Does Corporate Social Responsibility Predicate Good Financial Performance? Evidence from the Nigeria Banking Sector

This research examines the cointegration, magnitude and strength of the relationship between corporate social responsibility and key financial performance indicators in Nigeria with a focus on the Nigeria banking sector. The ex post facto research design was adopted because the study made use of secondary data obtained from annual reports and accounts of the two market leaders in the sector- First Bank Plc and Zenith Bank Plc. The study covered from the year 1988-2011 for the First Bank of Nigeria and from 2002–2011 for Zenith Bank Plc. The research made use of the ordinary least square (simple linear regression) for the analysis of collected data in order to evaluate the magnitude of association of the variables. Findings from the analysis show that the two banks invested less than ten percent (10%) of their annual profit in Corporate Social Responsibility (CSR) initiatives. The co-efficient of determination of the result obtained show that the explanatory variables account for changes or variations in the key financial performance indicators of the selected banks. Performance in their profit before taxes and the gross annual revenues were caused by changes in investment Corporate Social Responsibility (CSR) while no linear relationships could be established between the price for the shares and amount invested in CSR. The study therefore recommends that laws and regulations to obligate firms to invest a percentage of their annual profit to CSR be enacted by relevant government agencies. Keywords: Corporate Social Responsibility, Corporate Accounting, Financial Reporting, Financial Performance

Effect of Corporate Governance Structure and Financial Reporting Quality of Quoted Pharmaceutical Companies in Nigeria

The study investigated the Effect of Corporate Governance Structure and Financial reporting quality of quoted Pharmaceutical companies in Nigeria. A total of ten Pharmaceutical companies were used from 2006-2019. Data were extracted from the annual report and accounts of the Pharmaceutical companies in Nigeria. Financial reporting quality was calculated using Dechow and Dicher’s (2002) model. The Housman test of multiple regression analysis was employed to test the hypotheses. The result found that Board independence has a positive effect on the financial reporting quality, Board compositions have a positive and significant effect on financial reporting quality, Board meeting has negative association on the financial reporting quality of pharmaceutical companies in Nigeria. The ownership structure also reflects the positive and significant financial reporting quality of the selected companies. The number of times the risk management committee meets yearly as an indicator of corporate governance structure yield a positive influence on the financial reporting quality of selected pharmaceutical companies. The result for a ratio of female members in the board, i.e. gender composition and numerical strength of Audit committee members each, is yielding positive and significant effect on financial reporting quality. The r-squared outcome of 55% implies the ability of the selected pharmaceutical companies in Nigeria. The regression model is also supported by the outcome of Durbin-Watson statistics which is close to 2, indicating the possible absence of autocorrelated in the regression model. It, therefore, recommends that quoted firms should adhere to the guidelines given by CBN and SEC on the code of corporate governance as it affects their financial reporting quality. Regular and spontaneous supervising functions/checks by the different regulating agencies are also recommended

Effect of Shareholders’ Fund on the Investment and Performance of Deposit Money Banks in Nigeria

The bank recapitalization of 2005 brought about a substantial increase in the shareholders’ fund of deposit money banks in Nigeria. This necessitated the study on the effect of shareholders’ fund on the investment and performance of deposit money banks. Ex post facto research design was used and time series data were extracted from the annual reports and accounts of first bank of Nigeria which was the case study. The simple regression data analysis technique which was done with SPSS Version 21 revealed that the coefficient of the independent variable of the models were all positively signed, which implies that an increase in shareholders’ fund will bring about an increase in investment, gross earning and profit after tax of banks. The R2 depicts that shareholders’ fund was responsible for 42.5%, 66.4% and 45.7% changes in investment; gross earnings and profit after tax of deposit money banks respectively. Evidence from the study revealed that shareholders’ fund has a significant positive effect on the dependent variables with p-values which were all significant at 5%. The study therefore recommends that directors and board members should advise shareholders to increase their level of equity investment to enable banks have a large shareholders’ fund that it can trade with to generate increasing revenue. Keywords: Shareholders’ funds, investment, gross earning, profit after tax, deposit money bank

Challenges of Tax Auditors and Investigators in Abia State, Nigeria

The intention to undertake this study was to analyze the challenges of tax auditors and investigators in Abia State , Nigeria. The researcher conducted this academic work by using a scaled questionnaire. He took a sample of forty respondents with a population of 400 people that was based on judgmental sampling technique which comprised of chartered accountants, tax consultants and tax officials in public and private sectors in Umuahia, Abia State. The collected data was analyzed qualitatively. Whereupon, the study concludes that the following are the challenges faced by tax auditors and investigators ; poor record keeping by tax payers, lack of cooperation by taxpayers and agents , lack of technical manpower, bribery and corruption, obsolete tax laws, low funding of the tax authority, lack of data base etc. The study recommends modernization and automation of tax system, recruitment of qualified professionals who are well versed in tax and accounting among others

67 RELIANCE ON PUBLISHED FINANCIAL STATEMENTS AND INVESTMENT DECISION MAKING IN THE NIGERIA BANKING SECTOR

ABSTRACT: Financial Reporting Standards and Practices have in the recen

Impact of Training and Development on Organizational Effectiveness: Evidence from Selected Public Sector Organizations in Nigeria

This study is on impact of training and development on organizational effectiveness in public sector in Nigeria. The study sought to determine the nature of the relationship between training/development and   organizational effectiveness; to highlight the benefits of training and development in Nigeria public sector and to ascertain the impact of training/development on organizational performances. Sixty six (66) copies of the questionnaire were administered. 55 were duly completed and returned while 11 were not returned. The data generated from the field were presented and analyzed with descriptive statistic while the corresponding hypotheses were tested with the chi-square, Pearson’s Correlation and linear regression. The finding indicated that: There is positive relationship between training/development and organizational effectiveness. The increase in job satisfaction and reduce employee turnover are the benefit of training and development in public sector. Inter-personal and teamwork are the effect of training/development on organizational performance. The study concluded that effective training is an investment in the human resources of an organization, with both immediate and long –range returns. However mere investment is not enough; organizations need to manage training programs more effectively so that they can get the highest returns from their investment. The study recommends that organizations should make training and development of their employees a regular activity. Training has to involve more than just basic skill development. That is, to use training to gain a competitive advantage, organizations should view training broadly as a way to create intellectual capital. Keywords: Training, Development, Organizational Effectiveness and Organizational Performance, Nigeri