The Moderating Effect of Institutional Ownership on Intellectual Capital and Financial Performance of Listed Conglomerates

  • Isah Umar Kibiya
      Department of Accounting. Al-Qalam University, Katsina , Nigeria
    • Bilyaminu Shittu Aminu
        Jigawa State Polytechnic, Dutse, Jigawa State- Nigeria
      • Khadija Salihu Abubakar
          Department of Accounting, Al-Qalam University Katsina. Katsina- Nigeria

        Abstract

        This study examines the moderating effect of Institutional ownership on the relationship between   influence of intellectual capital and financial performance of listed conglomerate firms in Nigeria. The study utilized five out of six listed conglomerates firms in Nigeria. The study adopted correlational research design; using secondary data extracted from annual reports and account of the sampled firms within the period of the study of 2007-2017. The results from pooled ordinary least square regression (OLS) and Fixed effect revealed that intellectual capital indexed by value added intellectual coefficient (VAIC) has positive and significant impact on financial performance indexed by return on asset (ROA) of listed conglomerate firms in Nigeria. Furthermore, the interaction effect of institutional ownership was found to be positive and significant. It is therefore recommended institutional shareholders should invest more in shares of listed conglomerate firms in Nigeria and that management should recognize the effort and understand the importance of intellectual capital toward improving firm performance.

         

         

        Keywords:
        Intellectual Capital Institutional Ownership Return on Assets

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        Article History
        Received: 2019-04-25
        Published: 2019-08-10
        How to Cite
        Kibiya, I. U., Aminu, B. S., & Abubakar, K. S. (2019). The Moderating Effect of Institutional Ownership on Intellectual Capital and Financial Performance of Listed Conglomerates. SEISENSE Journal of Management, 2(5), 20-28. https://doi.org/10.33215/sjom.v2i5.151