Assessing the Relationship between Corporate Governance and Intellectual Capital in Nigeria:

Firm Size as the Moderating Role

Abstract

This study aims to examine the moderating role of firm size on the relationship between corporate governance and intellectual capital efficiency in Nigeria. The methodology was pooled data for three years (2021-2013) for 120 listed companies. The findings revealed that the inclusion of firm size as a moderating variable has influenced positively only the relationship between corporate governance principles and capital employed efficiency (CEE). Further, the finding showed that the two intellectual capital components, namely, human capital efficiency and structural capital efficiency, tend to be higher in companies with high corporate governance adoption. However, CEE tends to be higher in companies with lower corporate governance adoption levels. Other findings show that the corporate governance index was significant regarding the three intellectual capital components. Such information will help stakeholders, investors, decision-makers, regulators, policymakers, and scholars improve their intellectual capital knowledge. Furthermore, it will be helpful for companies to place their priorities regarding the internal system and financial plans for effective and efficient use of corporate governance and intellectual capital.