Effect of Non-Current Assets on Shareholders’ Value of Information Communicationand Technology Firms in Nigeria

Abstract

This study investigated the effects of non-current assets on shareholders’ value of information and communication technology (ICT) firms in Nigeria. Non-current assets, proxied by property, plant and equipment (PPE), intangible assets (INTA), and investment property, served as the independent variables, while shareholders’ value was measured by share price. Using multiple regression analysis, the study examined the influence of PPE, INTA, and investment property on the share prices of ICT firms. The results revealed that property, plant and equipment exert a statistically significant negative effect on share price (p = 0.0183; coefficient = –0.644293), while intangible assets also show a statistically significant negative effect (p = 0.0006; coefficient = –0.760810). Conversely, investment property exhibits a statistically non-significant positive effect on share price (p = 0.7078; coefficient = 0.075715; t-statistic = 0.378575). The findings imply that ICT firms, being service-oriented, should exercise caution in investing heavily in non-current assets, particularly PPE and INTA, as they may negatively influence performance, share price, and ultimately shareholders’ value. The study recommends that ICT firms strategically evaluate PPE investments to ensure alignment with technological and operational objectives, develop robust strategies for the utilization and commercialization of intangible assets such as patents and trademarks, and ensure that investment properties are strategically managed to provide stable returns and enhance shareholder value.