International Journal of Innovative Research and Knowledge


Volume-4 Issue-7, July 2019




Title: IMPACT OF INTELLECTUAL CAPITAL ON THE FINANCIAL PERFORMANCE OF MICROFINANCE IN YAOUNDE – CAMEROON

Author: NKENGANYI Marcellus FONKEM

ABSTRACT

Successful financial institutions are those that continually innovate, while relying on new technologies, emphasizing on skills, and knowledge of their employees rather than assets. Knowledge being the key to new engine of microfinance institutions has become one of the most important aspects in recent years and the value it generates are intangible and are not always in the financial statement of these institutions. Forward-looking financial institutions have realized that Intellectual Capital (IC) is an integral part of understanding the financial performance of microfinance institutions. This study therefore tries to investigate the impact of intellectual capital and the financial performance (profitability and productivity) in the microfinance in Yaoundé, Cameroon. The results were based on data collected by the governments statistic office from 64 microfinance for the year 2007-2008 and it was found that microfinance do not totally rely on intellectual capital but investors baseless of their interest on the assets of the companies. Correlation and regression models were used to examine the relationship between intellectual capital and financial performance that is profitability and productivity. The findings from this study show that microfinance still depend very much on physical capital intensity and individually, each component of the VAIC commands different values as compared to the aggregate measure, which implies that investors place different value on the three VAIC components. The results indicate that physical capital intensity and human capital efficiency as well as capital employed efficiency are the most significant variables which are related to productivity. This study concludes that VAIC can explain productivity as well as profitability.


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IJIRK DESCRIPTION

ISSN: 2213-1356

Publisher: Scholar Touch Publishers

Area/Scope: Business, Economics & Management; Social Science, Literature, Arts & Humanities; Engineering & Technology; Life Science & Physical Science, Health & Medical Science

Frequency: Monthly

Format: Online & Print

Language: English

Review Process: Double Blinded

Access: Open Access