Intangible Asset Investment and Business Sustainability of Deposit Money Banks in Nigeria

Abstract

In recent years, research has shown that companies have steadily increased their investment in intangible assets relative to tangible assets, and many scholars have studied the impact of these investments on firm’s profit and performance. However, there have been very few studies examining the impact of these investments on the sustainable growth of firms in Nigeria. This study investigated the impact of intangible asset investment on the business viability of Nigerian deposit money institutions. The investigation employed an ex-post facto design with a sample size of twelve deposit money institutions. The analysis utilised secondary data obtained from the Nigerian Exchange Group. The random effect regression analysis technique was used to analyse the data, and the results indicated that goodwill intensity has a significant positive effect on sustainable growth rate, whereas asset intangibility intensity has a significant negative effect on the sustainable growth rate of deposit money banks in Nigeria. Therefore, the study concludes that investment in intangible assets has a significant impact on the business sustainability of Nigerian deposit money banks. For sustained business growth, the study recommends that deposit money institutions invest more in intangible assets.