Intellectual capital and market value added of listed insurance companies in Nigeria

This study ascertained the effect of Intellectual Capital (IC) on Market Value Added (MVA) of listed Insurance companies in Nigeria for the period of ten years covering from 2012-2021.  This research relies on an empirical model using Value Added Intellectual Coefficient (VAIC™) to measure IC performance through predictive analysis.  VAIC™ has three major components Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE) and Capital Employed Efficiency (CEE). Using data drawn from the sample size of fifteen (15) listed insurance companies annual reports and accounts, this study employed inferential statistics using Pearson Correlation coefficient and Panel Least Square (PLS) regression models to examine the relationship between Intellectual Capital and firms’ Market Value Added via E-Views 10.0 statistical software. Ex-Post facto research design was adopted. The empirical results revealed that Human Capital Efficiency (HCE) has a significant positive relationship with Market Value Added at (P <0.05), Structural Capital Efficiency (SCE) exhibited a significant positive relationship with Market Value Added at (P<0.05) and Capital Employed Efficiency (CEE) exhibited a significant positive relationship with Market Value Added at (P<0.05). It was suggested inter alia that firms should always consider human capital as the key factors in the successful implementation of business strategies, since it plays an important role in enhancing productivity and efficiency.