The impact of intellectual capital efficiency on stock price: evidence from Ghana

Purpose The study examined how intellectual capital efficiency affects stock price, with specific reference to the context of Ghana. Design/methodology/approach To achieve the study objectives, data was manually extracted from the audited annual reports of the firms and market-based documents on the Ghana Stock Exchange (GSE) website for the period 2013–2023. Data spanned 28 firms while the empirical result was generated using panel corrected standard errors (PCSEs). Findings The results show that investors in Ghana’s capital market value intellectual capital efficiency in making investment decisions. In overall terms, the study specifically revealed that stock price responds positively to intellectual capital efficiency. Practical implications The importance of intellectual capital (i.e. intangible resources) is reechoed in this study by showing that listed firms in Ghana and, by extension, Africa, can improve their value through ensuring intellectual capital efficiency. Originality/value In a developing economy context like Ghana, this study for the first time provides empirical evidence that intellectual capital efficiency is value relevant as it is valued by equity investors for decision-making.