Intellectual Capital Efficiency and Financial Performance of Financial Service Firms in Nigeria.

As the Nigerian financial services industry continues to experience rapid technological transformation, firms are becoming more dependent on intangible assets such as employee expertise, organizational systems, innovation and technological capabilities rather than traditional physical assets. Based on this, the study examines how the efficiency of intellectual capital is connected to the financial performance of financial service companies in Nigeria, using an ex-post facto research approach. The population constitutes all 42 listed financial institutions currently listed on the NSE while 25 of them are randomly sampled based on the availability of their annual reports and accounts between 2015 and 2024. Findings revealed that while HCE and SIZE exert significantly positive influence on the financial performance, SCE exerted no significant influence. The study reinforces the view that the future competitiveness and sustainability of financial service firms in Nigeria depend on the successful management of human capital. Managers should therefore focus on strengthening human resource capabilities, improving organizational systems and processes and fostering a culture of continuous innovation. Likewise, regulators and policymakers should continue to promote frameworks that encourage transparency, accountability and the development of intellectual resources.

Human Capital Efficiency; Structural Capital Efficiency; Firm Size; Nigerian Stock Exchange

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