Intellectual Capital and Corporate Governance Mechanisms Impact on Firm Value: Evidence from Listed Non-Financial Firms in Nigeria

Abstract

This study examines the effect of intellectual capital and corporate governance on the firm value of listed non-financial companies in Nigeria over the period 2014–2023. Anchored on the Knowledge-Based View and Agency Theory, the study employs panel data from 56 firms listed on the Nigerian Exchange Group and applies fixed effects regression techniques to control for unobservable firm-specific heterogeneity. Intellectual capital is measured using the Value Added Intellectual Coefficient (VAIC) framework, decomposed into human capital efficiency, structural capital efficiency, and relational capital efficiency, while firm value is proxied by Tobin’s Q. Corporate governance mechanisms include board size, board independence, board meetings, board financial expertise, gender diversity, and ownership concentration. The results reveal that intellectual capital, particularly human capital efficiency, exerts a positive and statistically significant effect on firm value, underscoring the strategic importance of knowledge-based resources in emerging economies. Relational capital exhibits a weak positive effect, while structural capital is insignificant. Among governance mechanisms, board gender diversity is the only attribute with a positive and significant influence on firm value. The findings suggest that intellectual capital and inclusive governance structures play complementary roles in enhancing firm valuation. The study contributes to the limited Nigerian literature by providing long-term empirical evidence on the joint impact of intellectual capital and corporate governance on firm value and offers policy-relevant insights for regulators, managers, and investors.