Is intellectual capital a good predicator of stock market value? Evidence from the Nigerian banking sector

Abstract

This study investigated the practicability of using intellectual capitals as a primary business resource to explain the stock market performance of Nigerian banks. The study adopted the ex-post facto research design and applied the value added intellectual coefficient (VAIC) model. The analysis was conducted using time series data obtained from the Nigeria Stock Exchange and from annual reports and accounts of the selected banks from year 2000 to 2011. The multiple regression analysis method was adopted for test of the hypotheses using version 17.0 of SPSS statistical software. The results showed that there is positive and significant relationship between components of VAIC and the market value of the banks (VIAC coefficient = 0.722, R 2 c = 0.987, R 2 t = 0.49, P