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Article
Publication date: 13 July 2015

Sirinuch Nimtrakoon

The purpose of this paper is to explore and compare the extent of intellectual capital (IC) and its four components among ASEAN countries, and examine the relationship…

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Abstract

Purpose

The purpose of this paper is to explore and compare the extent of intellectual capital (IC) and its four components among ASEAN countries, and examine the relationship between firms’ IC, market value, and financial performance.

Design/methodology/approach

The study uses the data of 213 technology firms listed on five ASEAN stock exchanges. Pulic’s Value Added Intellectual Coefficient model is modified by adding an extra component, namely, relational capital efficiency (RCE). The Kruskal-Wallis one-way ANOVA and multiple regression analysis have been utilized to test the hypotheses.

Findings

The results reveal that there is no significant difference in Modified Value Added Intellectual Coefficient (MVAIC) across five ASEAN countries; however, firms in each country tend to place a different degree of emphasis on components of MVAIC to generate corporate value. The results further indicate a positive relationship between IC and market value, confirming that firms with greater IC tend to have greater market value. Likewise, a positive relationship between IC and financial performance measures is confirmed. Specifically, IC is found to be positively associated with margin ratio and return on assets. Capital employed efficiency and human capital efficiency are found to be the most influential value drivers for both market value and financial performance while structural capital efficiency and relational capital efficiency possess less importance.

Originality/value

This study contributes to the IC literature by expanding our knowledge of IC in the emerging economies, and providing a national comparative IC research when such research is limited.

Details

Journal of Intellectual Capital, vol. 16 no. 3
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 8 July 2014

Cristina Maria Morariu

The purpose of this paper is to identify the intellectual capital (IC) performance of the Romanian companies, to empirically examine the association between IC performance…

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Abstract

Purpose

The purpose of this paper is to identify the intellectual capital (IC) performance of the Romanian companies, to empirically examine the association between IC performance and traditional corporate performance and to analyse the relative importance of various components of IC on the company's performance.

Design/methodology/approach

Value Added Intellectual Coefficient model (VAICTM) is applied to measure IC performance. Traditional corporate performance is measured through profitability, productivity and market value. In total, 12 null hypotheses are tested using multiple regression analysis where another two control variables (firm size and industry type) are generally included.

Findings

Entities creating value from their intellectual, physical and financial resources are penalized by the capital market. Capital employed has an insignificant role in both value creation and in reducing company's production costs. Market value is not necessarily improved by a properly managed structural capital but is influenced by company size. Human capital plays a major role in productivity variation.

Research limitations/implications

Results related to the impact of control factors are mixed and sometimes not significant. Additional research could introduce other control factors, may investigate paper's hypotheses across time, revisit some of the basic assumptions of the VAICM and assess their potential consequences for the validity of empirical testing and results.

Originality/value

This is the first study that replicates VAICTM in the case of Romanian companies. It provides valuable insights about corporate performance in an emerging economy and into the association between IC and traditional corporate performance. It enriches both IC and management literature with new empirical evidence and provides a basis for comparison with other studies.

Details

Journal of Intellectual Capital, vol. 15 no. 3
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 1 October 2006

G.E. Swartz, N‐P. Swartz and S. Firer

The debate on the determinants of firm value is ongoing; and the increasing gap in the book‐to‐market ratio (Lev & Sougiannis 1999) has yet to be explained in the…

Abstract

The debate on the determinants of firm value is ongoing; and the increasing gap in the book‐to‐market ratio (Lev & Sougiannis 1999) has yet to be explained in the financial literature. This article contributes to the debate by examining whether intellectual capital measured using the value added intellectual coefficient (VAICTM) (Pulic 1998) contributes to the explanation of the book‐to‐market ratio. This study used Ohlson’s 1995 valuation model and JSE Securities Exchange (SA) (JSE) data in an attempt to identify whether the book value of assets, accounting (accrual) earnings and VAICTM explain the behaviour of South African share prices. The panel data least squares model results indicate a significant relationship between share prices three months after year end, and abnormal earnings, abnormal cash dividends, book value of assets, the capital employed coefficient, and the human capital coefficient.

Open Access
Article
Publication date: 8 June 2021

Christian Acuña-Opazo and Oscar Contreras González

The purpose of this paper is to analyse the direct impacts on financial performance and the added value of production in family businesses, considering the efficiency of…

1886

Abstract

Purpose

The purpose of this paper is to analyse the direct impacts on financial performance and the added value of production in family businesses, considering the efficiency of intellectual capital as determining variables.

Design/methodology/approach

A comparative analysis between family businesses (FB) and non-family businesses (NFB) is proposed to explore significant differences in the impacts on financial performance and added value of companies, through multivariate techniques. It contributes to the literature on the family business, and its performance from an analytical framework that incorporates the theory of intellectual capital and the measurement of its impact.

Findings

The findings show that the value-added coefficient of intellectual capital (VAICTM) is a determining factor in the financial performance of companies and, to a greater extent, in the FB than in their NFB counterparts. It is also verified that the efficiency of intellectual capital in the FB has a direct and greater relationship with the value added of production (VAEmp), with respect to non-family businesses, being an important factor in predicting the performance of companies.

Practical implications

The findings allow us to conclude the importance of efficient management of intangible factors in companies, such as intellectual capital, becoming a competitive advantage factor.

Originality/value

The document explores the relationship and impact of VAICTM in family businesses that belong to an emerging economy and demonstrates the existence of differences between FB and NFB, at the level of intangible factors under a comparative analysis.

Details

Journal of Economics, Finance and Administrative Science, vol. 26 no. 51
Type: Research Article
ISSN: 2077-1886

Keywords

Article
Publication date: 2 February 2021

Qian Long Kweh, Wen-Min Lu, Kaoru Tone and Mohammad Nourani

The purpose of this study is twofold. First, this research estimates banks' efficiencies from the perspectives of resource utilization and investment after incorporating…

Abstract

Purpose

The purpose of this study is twofold. First, this research estimates banks' efficiencies from the perspectives of resource utilization and investment after incorporating risk measures as an exogenous input in the investment-efficiency stage. Second, the current study examines the relationship between intellectual capital (IC) and banks' efficiencies.

Design/methodology/approach

First, this study uses a dynamic network data envelopment analysis approach in investigating the efficiencies of 24 Taiwanese banks in 2007–2018 from two perspectives. Second, this research utilizes various regression techniques, namely, ordinary least squares (OLS), robust least squares and truncated regression, to gauge the impact of IC on banks' efficiencies. Typically, IC is determined based on a monetary value-based measure and value-added intellectual coefficient (VAICTM).

Findings

Resource-utilization (investment) efficiencies were observed as 0.941 (0.964), thereby contributing to the mean overall efficiency of the sample banks at 0.952. However, the related efficiency changes decline over the sample period, thereby suggesting that the average banks' efficiencies hardly increase. Regression analyses show a significantly positive relationship between IC and banks' overall resource-utilization and investment efficiencies.

Research limitations/implications

Overall, this study suggests that researchers should consider risks when estimating banks' efficiencies owing to their connection to banks' investment performance. From banks' dynamic two-stage efficiencies, this study demonstrated that investments in IC will bring improved future economic benefits.

Originality/value

Different from prior studies, this study improves banks' efficiency evaluation models by incorporating risk measures and assuming weighted periods for the 2007–2008 global financial crisis. Moreover, the use of monetary value-based measure of IC provides consistent results as the commonly-used VAICTM does.

Details

Journal of Intellectual Capital, vol. 23 no. 3
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 1 October 2005

N‐P. Swartz and S. Firer

This article examines the relationship between board structure and the intellectual capital performance of South African publicly listed companies. Board composition was…

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Abstract

This article examines the relationship between board structure and the intellectual capital performance of South African publicly listed companies. Board composition was analysed in terms of gender and ethnic diversity, using cross‐sectional multiple regressions. The population of the study included all South African companies listed on the JSE Securities Exchange during 2003. The final sample, after the transformation of the data, consisted of 117 companies. The empirical results indicated a positive significant relationship between the percentage of ethnic members on the companies’ boards of directors and intellectual capital performance. Based on the results of this study, it is argued that South African publicly listed companies may be able to enhance their intellectual capital performance by using an ethnically diverse board of directors.

Details

Meditari Accountancy Research, vol. 13 no. 2
Type: Research Article
ISSN: 1022-2529

Keywords

Article
Publication date: 11 March 2014

Domenico Celenza and Fabrizio Rossi

The aim of this paper is to investigate the relationship between corporate performance and Value Added Intellectual Coefficient (VAICTM) on the one hand, and the

1110

Abstract

Purpose

The aim of this paper is to investigate the relationship between corporate performance and Value Added Intellectual Coefficient (VAICTM) on the one hand, and the relationship between the variations in market value and the variations in VAIC on the other hand.

Design/methodology/approach

Starting from the VAIC model, 23 Italian listed companies were examined with the aim of investigating the relationship between VAIC and the performance of the firms in the sample. The analysis was divided into two stages. In the first stage, eight models of linear regression were estimated to verify the presence of a positive and statistically significant relationship between M/BV and VAIC and between accounting performance indicators (ROE, ROI, ROS) and the VAIC. In the second stage, six other models were tested, considering as an independent variable the variations in VAIC and the variations in profitability indicators.

Findings

The outcomes of the application stress the importance of VAIC in the explanation of the variations in MV and its role as “additional coefficient” in the analysis of equity performance.

Originality/value

This methodology highlights some very interesting aspects. In particular, whereas the relationship between M/BV and VAIC and between profitability indicators (ROI, ROE, ROS) and VAIC is statistically insignificant, the subsequent analysis highlights the importance of VAIC as a variable capable of increasing the explanatory power of the regression in a cross-sectional perspective.

Details

Measuring Business Excellence, vol. 18 no. 1
Type: Research Article
ISSN: 1368-3047

Keywords

Article
Publication date: 5 May 2015

Ranjith Appuhami and Mohammed Bhuyan

– The purpose of this paper is to examine the influence of corporate governance on intellectual capital (IC) in top service firms in Australia.

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Abstract

Purpose

The purpose of this paper is to examine the influence of corporate governance on intellectual capital (IC) in top service firms in Australia.

Design/methodology/approach

Drawing on the agency theory, the paper develops hypotheses about relationships between corporate governance mechanisms (chief executive officer [CEO] duality, board size, board composition and subcommittee composition) and IC. The study uses a multiple regression analysis on data collected from corporate annual reports of 300 firm-year observations.

Findings

The findings of the regression analysis indicate that CEO duality, board composition and remuneration committee composition are significantly associated with IC. In contrast, there is no evidence that board size and audit committee composition have an effect on IC. The study contributes to agency theory in general and the literature on IC and corporate governance more specifically.

Practical implications

The findings of the study might be of interest to regulators, investment analysts, shareholders, company directors and managers in Australia, as well as academics, in designing corporate governance mechanisms to develop IC.

Originality/value

Corporate governance is country-specific and, hence, its impact on managerial decisions leading to IC is different from country to country. This study provides empirical evidence on the relationship between corporate governance and IC in top service firms in Australia.

Details

Managerial Auditing Journal, vol. 30 no. 4/5
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 1 May 2005

Dimitrios G. Mavridis and Pantelis Kyrmizoglou

The field for Intellectual Capital (IC) and the related philosophy of Knowledge Management (KM) has arisen recently to an interesting research object worldwide…

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Abstract

The field for Intellectual Capital (IC) and the related philosophy of Knowledge Management (KM) has arisen recently to an interesting research object worldwide. Researchers round the globe presented interesting realistic contributions to the “intellectual” matter like Tobin’s “q”, Intangible Assets Monitor ‐IAM or “Skandia Navigator”. Increasingly the metrication of the intellectual intangibility, the visualization of the invisible intellectual brain power or the calculation of the intellectual potentiality provoked many “serious” researchers to fight like the hero of La Mancha “again wind, light and sound”. A. Pulic “VAIC™ – Value Added Intellectual Capital Method” is one way to bridge the distance from “tacit to ex plicit” because it helps to understand the metrics of intangibility. In the present research the data (published balance sheet and profit/loss account information) of seventeen main Greek banks for the period 1996 to 1999 is analyzed. The focus is put on the used human capital (HC) and physical capital (CA) of the Greek banking sector and their impact on firms’ value added (VA) based performance is discussed. The predictive (regression analysis) impact on the “intellectual” value added (VA) based performance confirms the existence of value added (VA) based performance differences among the various banks – always due to their potential of intellectual and physical capital.

Details

Management Research News, vol. 28 no. 5
Type: Research Article
ISSN: 0140-9174

Keywords

Open Access
Article
Publication date: 11 March 2022

Md. Anhar Sharif Mollah and Md. Abdur Rouf

Intellectual capital (IC) and financial performance is now a very contemporary issue in the banking sector. The purpose of this study is to investigate empirically the…

Abstract

Purpose

Intellectual capital (IC) and financial performance is now a very contemporary issue in the banking sector. The purpose of this study is to investigate empirically the impact of IC on financial performance of all the listed commercial banks of Bangladesh.

Design/methodology/approach

Bangladesh Bank database and financial statement of the listed commercial banks of Bangladesh for the period of 2014–2018 have been used to collect data. Value added intellectual coefficient (VAICTM) methods have been used for measuring the performance of banks. VAICTM determined IC and its three major components like structural, human and capital employed.

Findings

The results suggest that human capital efficiency (HCE) and capital employed efficiency (CEE) have statistically significant relationships with bank performance, but when VAICTM is divided then structural capital efficiency (SCE) does not have a significant relationship with bank performance.

Research limitations/implications

The study uses only listed banks, but it does not include all the commercial banks specially nationalized commercial banks.

Practical implications

The findings allowed banks to focus more on human capital (HC) and structural capital, because in the present world, HC is considered one of the key factors for the success in business. This study also provides an awareness on how good IC of the banking companies will bring more assistance to a better life of a society.

Originality/value

This is one of the very few studies which examine the impact of IC on bank financial performance in Bangladesh.

Details

Journal of Money and Business, vol. 2 no. 1
Type: Research Article
ISSN: 2634-2596

Keywords

1 – 10 of 49