INFLUENCE OF NIGERIA-LISTED CONSUMER GOODS FIRMS INTELLECTUAL CAPITAL COMPONENTS ON PROFITABILITY

Abstract

The main objective of any firm worldwide is to make a profit for its shareholders through the effective utilization of intellectual capital. The purpose of this study is to investigate the influence of Nigeria-listed consumer goods firms' intellectual capital components on Profitability for the period of 2009 - 2022. The study's population consisted of 21 CGFs in Nigeria as of December 31, 2021, 13 sample sizes were selected using a purposive sampling technique. The relationship between profitability and intellectual capital efficiency was examined using multiple regression analysis through STATA 13. The study found a positive and significant effect of human capital efficiency (HCE) and capital-employed efficiency (CEE) on return on equity (ROE). However, structural capital efficiency (SCE) has an insignificant effect on roe. This study concludes that increasing human capital and using resources more effectively could result in higher profitability for CGFs in Nigeria. This study recommends that to increase their profitability, Nigerian CGFs should prioritize investing in the development of their human capital and capital usage optimization