Abstract
The main focus of this research is to investigate the mediating link
between intellectual capital, capital Structure and financial
performance in banks listed on the Nigerian Stock Exchange. The study
used documented data drawn from the annual reports and accounts of the
sampled banks as well as NSE data for the period 2011- 2015. Structural
Equation Modelling (SEM) is applied to find the association between
latent constructs and to find their impact of financial performance of
listed Nigerian Banks. This study empirically shows that the capital
structure through intellectual capital efficiency has a significant
relationship with financial performance measures and weak link with
leverage level of the sampled banks as a whole. This empirical study
gives a new insight into intellectual capital, capital structure for
companies to enhance their financial performance through proper
investment in intellectual capital while maintaining focus on the level
of corporate leverage as it declines with IC efficiency. This study is
the first of its own kind that measures mediating impact of IC
efficiency relationship between capital structures and financial in the
Nigerian banking industry using the adopted methodology and analysis.
Further studies using alternate methodology and analysis while
maintaining the key study’s structure would further validate the current
outcome is suggested in order to further strengthen the discourse.
Keywords : Capital Structure, Financial Performance,
Intellectual Capital, Nigerian Banks