Effect of Human Capital Efficiency on Listed Non-Financial Firm Value in Nigeria; Moderating Role of Board Members Continuous Education

The study examines the effect of human capital efficiency moderated by Board members customers on value of non-financial firms in Nigeria quoted in the Nigeria Exchange Group for the period of 2020 to 2024. A total of eighty-six (86) firms were used after meeting up with the filtering criteria used for the study. Longitudinal research design was employed for the study. The study employs secondary data extracted from the Annual Reports and Accounts of the sampled companies. Diagnostic tests were carried out on the statistical procedure used in evaluating the validity and reliability of the analysis. Data were analyzed using Generalized Method of Moments; test for multicollinearity conducted using Variance Inflation Factors and heteroskedasticity test was conducted to ensure the validity and reliability of the research finding and ensure reliable and efficient estimates of the correlation coefficient. While the hypotheses were tested using regression model, the results shows that human capital efficiency moderated by board members continuous education does not positively and significantly moderate the effect of human capital efficiency of non- financial firms for the period under review. The study recommends that non- financial firms should engage in strong human capital investment by encouraging every staff to improve in their capacity either collectively or as individual. Managers of Nigerian non- financial firms should ensure capital development by linking training budgets to value creation metrics and embedding HCE in executive performance appriuisal.

Human Capital, Human capital efficiency, Board members continuous education and firm value.

1. Chen, M. H., & Chang, Y. Y. (2013). The impacts of human capital in enhancing new venture's performance: Competence, motivation and creativity. Journal of Knowledge-based Innovation in China, 5(2), 146–168. [Google Scholar] [Crossref]

2. Chen, M. C., Cheng, S. J., & Hwang, Y. (2005). An empirical investigation of the relationship between intellectual capital and firms market value and financial performance. Journal of Intellectual Capital, 6(2), 159–176. [Google Scholar] [Crossref]

3. Cam, I., & Ozer, G. (2022). Intellectual capital and firm value: An investigation of Turkish manufacturing companies. Istanbul Business Research, 51(1), 257–277. [Google Scholar] [Crossref]

4. Costa, G., & Camuffo, A. (2014). The evolution of human resource management in Italy: A historical-institutional perspective. In The Development of Human Resource Management Across Nations, 269–299. [Google Scholar] [Crossref]

5. Clarke, M., Seng, D., & Whiting, R. H. (2011). Intellectual capital and firm performance in Australia. Journal of Intellectual Capital, 12(4), 505–530. [Google Scholar] [Crossref]

6. Dumay, J. (2016). A critical reflection on the future of intellectual capital: from reporting to disclosure. Journal of Intellectual Capital, 17(1), 168–184. [Google Scholar] [Crossref]

7. Edvinsson, L., & Malone, M. (1997). Intellectual Capital: Realizing Your Company’s True Value by Finding Its Hidden Brain Power. HarperCollins. [Google Scholar] [Crossref]

8. Emekezimerh, F. A., & Opuofoni, C. A. (2024). Capital market and economic growth in Nigeria. Asian Journal of Economics, Banking and Accounting, 24(25), 297–309. [Google Scholar] [Crossref]

9. Fernando, W. H. M., Yusoff, S. K. M., Khatibi, A., & Azam, S. F. (2020). Human capital impact on organizational performance: Special reference to the banks in Sri Lanka. European Journal of Social Sciences Studies. [Google Scholar] [Crossref]

10. Jamal, W., & Saif, M. I. (2011). Impact of human capital management on organizational performance. European Journal of Economics, Finance and Administrative Sciences, 5(34), 13309–13315. [Google Scholar] [Crossref]

11. Khanna, P., Jones, C. D., & Boivie, S. (2014). Director human capital, information processing demands, and board effectiveness. Journal of Management, 40(2), 557–585. [Google Scholar] [Crossref]

12. Lestan, D. E., & Suryani, W. A. (2020). Firm’s value exploration: The impact of intellectual capital and networking capital. Journal Dinamika Akuntansi, 12(2), 152–164. [Google Scholar] [Crossref]

13. Liu, Z., Chi, G. D., & Han, L. (2019). Board human capital and enterprise growth: A perspective of ambidextrous innovation. Sustainability, 11(14), 3993. [Google Scholar] [Crossref]

14. Nagyyen, H. A., & Doan, T. D. (2020). The impact of intellectual capital on firm value: Empirical evidence from Vietnam. International Journal of Financial Research, 11(4), 74–85. [Google Scholar] [Crossref]

15. Nadeem, M., Ganc, & Nguyenic. (2017). Does intellectual capital efficiency improve firm performance in BRICS economies? Measuring Business Excellence, 21(1), 65–85. [Google Scholar] [Crossref]

16. Oliveira, M., Curado, C., Balle, A. R., & Kianto, A. (2020). Knowledge sharing, intellectual capital and organizational results in SMEs: Are they related? Journal of Intellectual Capital, 22(4), 645–670. [Google Scholar] [Crossref]

17. Ramirez, Z. Y., Dieguez-Soto, J., & Manzaneque, M. (2020). How does intellectual capital efficiency affect firm performance? The moderating role of family management. International Journal of Productivity and Performance Management, 70(2), 297–324. [Google Scholar] [Crossref]

18. Romero, F. T., Ponce, Á. T., Córcoles, Y. R., & Pérez, M. D. M. L. (2023). Board leadership structure and human capital disclosure: Role of independent directors. European Research on Management and Business Economics, 29(3), 26–37. [Google Scholar] [Crossref]

19. Shairi, B. A. S., Mohammed, S. H., & Tuyon, J. (2021). Intellectual capital and firm performance: Evidence from technology sector in Malaysia. International Journal of Academic Research in Economics and Management Sciences, 10(1), 244–258. [Google Scholar] [Crossref]

20. Smriti, N., & Das, N. (2018). The impact of intellectual capital on firm performance: A study of Indian firms listed in COSPI. Journal of Intellectual Capital, 19(5), 935–964. [Google Scholar] [Crossref]

21. Tan, H. P., Plowman, D., & Hancock, P. (2007). Intellectual capital and financial returns of companies. Journal of Intellectual Capital, 8(1), 76–97. [Google Scholar] [Crossref]

• The Role of Value and Growth Stocks in Portfolio Returns: Insights From the Nigerian Stock Market
• The Impact of Environmental, Social, Governance (ESG) and Profitability on Firm Value Moderated by Firm Size
• Assessment of the Impact of Environmental Operating Costs on Return on Assets: Evidence from Listed Breweries in Nigeria
• Mobile Money and Digital Financial Services Ecosystem in Adamawa State
• A Quantitative Approach of Professional Skepticism and Fraud Detection among Malaysian Internal Auditors