INTELLECTUAL CAPITAL, ASSETS MANAGEMENT AND FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA

Abstract

Financial performance is very important for the success of any profit making organization. It is one of the element that attracts the attention of investors, hence, the need to be maximize. Despite the attention gain in finance theory, the results of the studies on the relationship between assets management and financial performance remain inconsistent and inconclusive. Thus, this study examined the moderating effect of intellectual capital on the relationship between assets management and financial performance of listed consumer goods companies in Nigeria.  Adopting correlation research design and agency theory, the data collected from annual reports and accounts of the sampled companies for the period of five (5) years (2016-2020) were analyzed using both descriptive and inferential statistics. The study revealed that fixed assets turnover and inventory turnover have positive and significant effect on return on assets of the companies, while account receivables turnover has negative but significant influence on return on assets. Furthermore, intellectual capital was found to have positively and significantly moderated the relationship between assets management and financial performance of the companies. This implies that, listed consumer goods companies that invest high in human and structural capital perform financially better than its counterpart through effective and efficient utilization of companies’ assets and minimization of agency cost. Hence, the study recommended that, for the listed consumer goods companies in Nigeria to improve their financial performance, they should improve investment in both human and structural capital.