Intellectual Capital, Institutional Ownership and Financial Performance of Listed Consumer Goods Companies in Nigeria

This study examined the moderating effect of institutional ownership on the relationship between intellectual capital and financial performance of listed consumer goods companies in Nigeria. Using a correlational research design with longitudinal panel data from 2015 to 2025, a sample of 14 listed consumer goods companies with complete data yielded 154 firm-year observations. Secondary data were extracted from audited annual reports. Intellectual capital components were measured using the Modified Value-Added Intellectual Coefficient (MVAIC) framework, where human capital efficiency (HCE), structural capital efficiency (SCE), and relational capital efficiency (RCE). Institutional ownership (IO) was measured as institutional shareholding percentage. Financial performance was measured using Return on Assets (ROA) and Return on Equity (ROE). Data were analyzed using fixed effects panel regression with robust standard errors. The findings revealed that HCE had a significant positive effect on ROA (β = 0.0189, p = 0.003) and ROE (β = 0.0452, p = 0.018). SCE had no significant effect on ROA (p = 0.128) or ROE (p = 0.183). RCE had a significant negative effect on ROA (β = −0.0456, p = 0.023) and ROE (β = −0.2318, p = 0.020). IO had a significant positive effect on ROA (β = 0.0012, p = 0.018) but no effect on ROE (p = 0.108). The interaction term HCE×IO was negative and significant for ROA (β = −0.0006, p = 0.047), indicating that institutional ownership weakens the positive effect of human capital efficiency on asset returns. Leverage significantly reduced by ROA (β = −0.0873, p = 0.000) and ROE (β = −0.3145, p = 0.001). The study concludes that human capital efficiency is the strongest driver of financial performance, relational capital investments show diminishing returns, structural capital does not significantly affect performance, and institutional ownership plays a limited moderating role. The study recommends that management prioritize human capital development over excessive marketing spending, institutional investors adopt longer-term engagement perspectives, and policymakers consider mandatory human capital disclosure requirements.