INTANGIBLE ASSETS ANDPERFORMANCE OF QUOTED PHARMACEUTICAL FIRMS IN NIGERIA

INTANGIBLE ASSETS ANDPERFORMANCE OF QUOTED PHARMACEUTICAL FIRMS IN NIGERIA

Abstract:

Conventional physical assets were initially presumed to be the main sources of value to corporate entities. Following the rapid growth and expansion of science, technology and globalization, particularly in the technological and chemical industries, both tangible and intangible assets are now accepted as potential strategic assets. This study which is underpinned by the Resource Base View Theory examines the impact of intangible asset on the performance of quoted pharmaceutical firms in Nigeria. The study employed correlation research design in a sample of six (6) quoted pharmaceutical firms for a period of ten (10) years. The study used Secondary data and Seemingly Unrelated Regression technique of data analysis was employed in the analysis of the data collected. The study found that intangible assets have significantly impacted on the financial performance of quoted pharmaceutical firms in Nigerian during the period covered by the study. This was as a result of adequate investment in the intangible assets and its proper management. Particularly, the study after controlling for physical capital intensity and assets turnover, found that capital employed efficiency has a significant negative impact on the performance of listed pharmaceutical firms in Nigeria; human capital efficiency has a significant positive effect on the performance of listed pharmaceutical firms in Nigeria; and, structural capital efficiency has a significant positive impact on the performance of listed pharmaceutical firms in Nigeria. The study recommends inter alia that, the management of pharmaceutical firms in Nigeria should emphasize investments in intangible assets as they pose great potentials of helping organizations to earn economic rent as posited by the Resource Base View theory. This can be done by setting aside a certain percentage of the firms’ annual profit for intangible assets improvement.It is also recommended that, the management of pharmaceutical firms in Nigeria should strive hard to develop their human resources by way of training and retraining as well as professional and competency development of the employees in their various areas of specialisations. This can be done through Mandatory Continuing Professional Development (MCPD) seminar, workshops and attending short time course.

INTANGIBLE ASSETS ANDPERFORMANCE OF QUOTED PHARMACEUTICAL FIRMS IN NIGERIA

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