Effect of Intangible Assets on Performance of Quoted Companies in Nigeria

Abstract

this work examined the effect of intangible assets on performance of quoted companies in Nigeria using time series data from 2008 to 2017. Relevant conceptual, theoretical and empirical literatures were examined. The study is anchored on signaling theory and agency theory. Ex post facto research design was employed. Five firms from different sectors of the economy were sampled. The data used in this study were sourced from annual reports and statement of accounts of the selected firms. Employee benefit expenses, research and development cost and goodwill were employed as the independent variable while return on capital employed was employed as the dependent variable. Descriptive statistics, correlation analysis and ordinary least Square regression were employed in analyzing the data. The study also found that employee benefit expenses has no significant effect on return on capital employed of quoted companies in Nigeria. The study further found that research and development cost has a significant effect on return on capital employed of quoted companies in Nigeria. Finally the study revealed that goodwill has a significant effect on return on capital employed of quoted companies in Nigeria. Based on the foregoing, the study concludes that intangible assets have significant effect on performance of quoted companies in Nigeria. The study recommends that management should have positive disposition towards intangible assets disclosure in order to project the real value of intangible assets in their organization.