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Board Committees' Independence and Intellectual Capital Efficiency in Corporate Nigeria

Authors: Musa Usman, Ph.D.; Onipe Adabenege Yahaya, Ph.D.;

Board Committees' Independence and Intellectual Capital Efficiency in Corporate Nigeria

Abstract

This paper examines the impact of board committees’ independence (audit committee independence, nomination committee independence, remuneration committee’ independence, and risk committee independence) on intellectual capital efficiency (Value Added Intellectual Capital) of 112 listed firms in Nigeria for the years 2013-2022. The paper applies descriptive, correlation and multiple linear regression analysis on the model. The findings show that audit committee independence has a positive and significant effect on intellectual capital efficiency. Also, the findings show that nomination committee independence has a positive and significant effect on intellectual capital efficiency. Similarly, the findings show that remuneration committee independence has a positive and significant effect on intellectual capital efficiency. Finally, the findings show that risk committee independence has a positive and significant effect on intellectual capital efficiency. Also, in terms of the control variables, leverage, listing age and firm size show positive and significant effects on ICE. This study, therefore, concludes that both audit, nomination, remuneration, risk committee independence, financial leverage, listing age and firm size are determinants of intellectual capital efficiency in Nigeria. These results have important implications for regulators, shareholders, and lenders in that they confirm that the effectiveness of board committees in intellectual capital efficiency is a function of independence. This study, therefore, recommends that regulators, shareholders and lenders pay extra attention to the level of intellectual capital of firms, as this can have long-term growth potentials and implications.

Keywords

Audit Committee Independence, Firm age, Firm size, Intellectual Capital Efficiency, Leverage, Nigeria, Nomination Committee Independence, Remuneration Committee Independence, Risk Committee Independence

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This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
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influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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