TY  - JOUR
AB  - Purpose This paper aims to examine empirically the behaviour of the impact of intellectual capital (IC) on firm performance during financial crises, having observed that there was no prior research carried out to examine whether the theoretically expected sustainable firm performance created by IC holds during a financially unstable situation in the economy.Design/methodology/approach The Pulic’s value-added intellectual coefficient method is used to measure IC. Firm performance is measured through productivity, profitability and revenue growth. Structural stability tests and dynamic regression models for panel data are used for the data of 191 banking firms listed on the New York Stock Exchange during 2000-2011.Findings The paper reveals, contrary to theoretical expectations, that the impact of IC on firm performance is inconsistent during financial crises. This behaviour emerges mainly because of the incapability of human capital, the main component of IC, to create value for the sample firms during financial crises.Research limitations/implications The findings of the study are confined to financial crises that existed in the US economy during the period 2000-2011. The findings provide evidence that heterogeneity in the resource base of a firm plays a very minor role in the value creation process during turbulent economic situations. The findings also question the practicality of investing in intangible assets, including IC, during periods of financial crises.Originality/value This paper could be the first attempt to evident empirically that the heterogeneity in the resource base of the firm has a very minor role to play in the value creation process when instability exists in the macroeconomic environment.
VL  - 20
IS  - 3
SN  - 1368-3047
DO  - 10.1108/MBE-08-2015-0043
UR  - https://doi.org/10.1108/MBE-08-2015-0043
AU  - Kehelwalatenna Sampath
PY  - 2016
Y1  - 2016/01/01
TI  - Intellectual capital performance during financial crises
T2  - Measuring Business Excellence
PB  - Emerald Group Publishing Limited
SP  - 55
EP  - 78
Y2  - 2024/05/10
ER  -