Effect of Intellectual Capital Development on Firm Value of Technology Firms in Nigeria

Abstract

Intellectual property as intangible assets includes patents, trademarks and copyrights, which can also be included in the traditional financial statement. Intellectual capital can be defined as the knowledge that is transformed into intellectual property or the end result of the process itself. The main objective of the study is to examine the effect of intellectual development on firm value of technology firms in Nigeria. Specifically, the study assesses the effect of human capital development, structural capital development, relational capital development and innovation capital development on firm value of technology firms in Nigeria. The study is anchored on the resource-based view (RBV) theory. The researcher adopted ex-post facto design in the study. The result of the study revealed that human capital development, structural capital development, relational capital development and innovation capital development has no significant effect on firm value of technology firms in Nigeria. The studies therefore conclude that intellectual capital development has positive and significant effect on firm value of technology firms in Nigeria. Amongst the recommendations is that management of the technology firms in Nigeria make more provisions for human capital development since this will enhance the firm value of technology firms in Nigeria. The management of the technology firms in Nigeria should make policies that will enable more structural capital development to improve technology firms in Nigeria. The management of the selected technology firms in Nigeria should also make more policies that will improve the relational capital development as a catalyst to improve firm value of technology firms in Nigeria. and the management of the selected technology firms in Nigeria should put in place effective and appropriate innovation capital development such that would enhance the firm value of technology firms in N