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