This study assessed the effect of intellectual capital on the profitability of Nigerian deposit money banks. The specific objectives are: To ascertain the effect of Structural Capital Efficiency (SCE) on the profitability of Nigerian deposit money banks; to determine the effect of Human Capital Efficiency Coefficient (HCE) on the profitability of Nigerian deposit money banks and to examine the effect of Capital Employed Efficiency Coefficient (CEE) on the profitability in Nigerian deposit money banks. The study adopted Ex post-Facto research design. The study used sample of fifteen (15) Nigerian deposit money banks quoted on the Nigerian Stock Exchange from 2010 to 2018 The data for the study was collected from annual reports and accounts of the deposit money banks quoted on the Nigerian Stock Exchange. Regression analysis was employed to test the formulated hypotheses with the aid of e-view version 9.0. The study revealed that Structural Capital Efficiency (SCE) has positive significant effect on the profitability of Nigerian deposit money banks. The study also revealed that Human Capital Efficiency Coefficient (HCE) has positive effect on the profitability of Nigerian deposit money banks, but is not statistically significant. In addition, Capital Employed Efficiency Coefficient (CEE) has positive effect on the profitability of Nigerian deposit money banks, but is not statistically significant. The study therefore recommended among others that Banks in Nigeria especially the Deposit Money Banks should adopt an intellectual capital strategy. This can be done by banks adding the position of Chief Intellectual Capital Management Officer (CICMO) on their organizational chart to help in structuring relevant strategies and policies on how to obtain and best utilize the required resources underlying IC.
Structural Capital Efficiency, Human Capital Efficiency Coefficient, Capital Employed Efficiency Coefficient and profitability
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