NON-CURRENT ASSETS AND LABOUR EFFICIENCY OF INFORMATION AND COMMUNICATION TECHNOLOGY FIRMS IN NIGERIA
Abstract
This study examined the effect of non-current asset on the labour efficiency of Information and Communication Technology (ICT) firms in Nigeria. The specific objectives are to evaluate the effect of property, plant and equipment, investment property and intangible assets on profit per employee. The study anchored on resource-based view theory. Ex-post facto research design was adopted wherein secondary data sourced from audited financial statements of three (3) chosen ICT firms listed on Nigerian Exchange Group. A period of 10 years (2013–2022) was used for the analysis. The results of the panel data regression analysis revealed that the predictor variables of property, plant and equipment had negative (-0.003287) and significant (0.0224) effect on profit per employee; investment property had a negative (-0.001419) and nonsignificant (0.3871) effect on profit per employee; while intangible assets had a positive (0.006589) and significant (0.0061) effect on profit per employee of ICT firms in Nigeria. The implications of the findings are that property, plant and equipment should be regularly maintained since rapid technological advancements and technological obsolescence can affect profitability. Intangible assets such as propriety software, brand reputation, research and development, improve service quality must be treated with care in a bid to remain profitable. The study concluded that among the explanatory variables examined only the intangible assets had a statistically significant positive effect on the profit per employee in Nigeria. The adjusted R-squared (R2) of the study 0.833 indicated that approximately 83% of the variations in profit per employee in Nigerian ICT firms can be explained by the individual variables. The study recommended amongst other things that ICT firms should regularly evaluate the utilization and maintenance of their assets to ensure that they are optimally utilized and thereby avoiding obsolescence. They should also prioritize strategies that foster innovation, culture of creativity and protection of intellectual property rights.
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