Intellectual Capital Efficiency and Corporate Sustainability Growth: The Nigerian Evidence

Omaliko Emeka¹ , Mordi Kelvin² , Uzodimma Amara³

Section:Research Paper, Product Type: Journal-Paper
Vol.11 , Issue.3 , pp.35-41, Sep-2023

Online published on Sep 30, 2023

Copyright © Omaliko Emeka, Mordi Kelvin, Uzodimma Amara . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
The study examined the relationship which exists between intellectual capital efficiency and corporate sustainability growth. Intellectual capital efficiency was proxy using human capital efficiency, relational capital efficiency and structural capital efficiency while corporate sustainability growth was measured using corporate sustainability growth rate (CSGR). The study adopted Ex post facto design and data for this study was obtained from the annual accounts of the 45 manufacturing firms listed on the floors of Nigerian Exchange Group for the year ended 2015-2022. Also, panel least square model was employed for the data analysis. The findings of the study indicate a positive and significant association between human capital efficiency, relational capital efficiency, structural capital efficiency and sustainability growth of manufacturing firms in Nigeria at 1% -5% significant level. The study therefore concludes that intellectual capital efficiency ensures corporate sustainability growth. Thus, the study recommends that manufacturing firms in Nigeria should develop a means to improve their human capital efficiency as any negative changes in human capital efficiency will impact the sustainable growth of the firm. They should also invest heavily in relational and structural capital as it can improve their competitiveness, reputation and bottom line.

Key-Words / Index Term :
Relational Capital Efficiency; Human Capital Efficiency; Structural Capital Efficiency; Intellectual Capital Efficiency; Corporate Sustainability Growth

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