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