An Analysis of Performance of Real Estate Investments in Onitsha Metropolis and Investments in Bank Shares in Nigeria

Real estate investments in most urban towns of Nigeria are done mostly by the informal sectors (ie private individuals). These group of investors together with formal sectors investors such as banks, insurance companies, corporate bodies  are putting considerable sums of money into real estate investment annually. Also recently the awareness of the need for the investment in securities has made a host of investors especially from the south-eastern part of Nigeria to begin to invest in equities such as bank shares. However these investments are made without knowledge and understanding of the performances of these sectors. This paper therefore focused on the analysis of the performance of real estate investments in Onitsha Metropolis and investments in bank shares in Nigeria for the period 2000-2010. The data on rental value and capital values were sourced from the estates surveying and valuation firms in Onitsha metropolis while data on the bank shares and divided per share were sourced from the commercial banks and the Nigeria stock exchange. Data collected were analyzed, using Arithmetic mean return (AMRR), geometric mean return (RG), standard deviation and coefficient of variation. The result showed the residential properties having arithmetic mean return (AMR) of 9.59%, geometric mean return (GMR) of 9.54%, standard deviation of 3.35% and coefficient of variation of 0.34, while the bank shares have an arithmetic mean return (AMR) of 16.64%, Geometric mean return (GMR( of 9.1%, standard deviation of 38.86% and coefficient of variation of 2.34. The performance indicators as shown by these parameters indicate that property investment is more secure than investment in bank shares. Keywords: comparative Analysis, performance measurement, Residential properties, Onitsha Metropolis, bank shares

The Application of Partial Least Square Regression to Develop a Model for Reliable Investment Valuation Estimates in South-East Nigeria

Against the increasing criticism of the reliability of the conventional investment method of property valuation practice in Nigeria, this study examine the ability of the Estate Surveyors and Valuers to estimate accurately the selling prices of residential properties in South-East Geopolitical Zone of the country with a view to formulate a model for reliable value estimates. Questionnaires were administered in a sample of randomly selected forty (40) Estate Surveyors and Valuers in the four selected towns of (Aba, Enugu, Onitsha and Owerri) in the South-East Geopolitical Zone. From the analysis of variance, the total of degree of freedom is seventeen, while the sum of square is 2682.44 and P-value in the table is 0.00, meaning that there is a statistically significant relationship between the Prices and Valuer estimates. The study further used the application of partial least square (PLS) regression model to develop model for perfect reliable price estimates. The model is thus: P=2.250.13v10.23v20.08v30.17v40.17v5+0.1v60.03v70.25v8+0.14v90.02v10+0.07v11+0.26v12+0.37v13+0.07v14+0.07v15+0.09v16+0.1v17+0.06v18+0.08v19+0.2v20+0.2v21. The model developed has the highest independent (X) variance, lowest level of the predicted error and highest coefficient of determination (R-square) between the value estimates and market prices and gives optimal and reliable result. Keywords: Partial least square, regression analysis, investment method of valuation, Valuation reliability, South-East Zone of Nigeria

Intellectual Capital and Corporate Performance of Listed Consumer Goods Firms in Nigeria Stock Exchange

DOI: 10.7176/EJBM/15-6-07 Publication date:March 31st 2023 1.0    Introduction Over the years, business organizations have recognized that resources are pivotal drivers of business success and performance. Resources such as financial, physical and intangible assets of the firm ought to be optimally managed and utilized in order to ensure that the firm achieves its financial objectives of wealth maximization. Intellectual capital is the most innovative feature for firms to act on according to the environmental changes through their knowledge, experience, and capabilities, which is applied to improve the organizational efficiency (Egolum, 2021). It is now a growing need amongst firm to strategize ways by which their resources could be best maximized for optimal financial returns, hence, the particular attention paid to intellectual capital which is popularly believed to contribute towards the value-added of the firm. (Alfiero, Brescia & Bert, 2021; Ovechkin, Romashkina & Davydenko, 2021). Intellectual capital refers to the various intangible assets which can be converted into profits or value but are not reflected in the financial statements of the firm (Ngoc & Duc, 2020). Extant literature classified intellectual capital into three, namely, human capital, structural capital and capital employed efficiency. Human capital refers to the skills, competencies and experience of the employees which altogether enable them contribute value to the course of the firm. While structural capital is the sum of methods, processes and brands that are owned by the firm, capital employed efficiency (CEE) refers to the economic term that reflects the level of exploitation and use of capital of a firm in production and business activities with the view to creating maximum value at the barest or minimum cost. Corporate performance, which ordinarily measures or indicates the extent to which a firm achieves its financial objectives, is all about how to create knowledge and transform that same knowledge into value. Therefore, in total disagreement with the submission of Kasoga (2020) that there is a debate on the empirical nexus between intellectual capital and the corporate performance of firms, the researcher underscores that the significant contribution of intellectual capital towards the enhancement of the corporate performance of firms is undebatable, it is indubitable. This is because almost all corporate researchers in this line have a consensus that ownership of knowledge, applied experience, organization innovation, customer relationship, and professional competencies, experience and skills essentially facilitate value creation amongst firms. However, intellectual capital is often not accounted for properly in the financial reports, and some firms still have low investment in intellectual capital. And so, the corporate performance of such firms with demonstrated inadequacies in their intellectual capital continues to be eroded