Intangible assets as possible indicators for the growth of the Hungarian firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Klára Katona
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Intangible Assets ◽  
Annual Reports ◽  
Labor Costs ◽  
Community Innovation Survey ◽  
Content Type ◽  
Explanatory Variables ◽  
Structural Capital ◽  
The Impact

Purpose Intellectual capital has become one of the most important factors in the knowledge economy. It is the combination of human capital and structural capital. The purpose of this paper is to examine the effect of intellectual capital, especially the effect of structural capital on the productivity of Hungarian firms between 2007 and 2017. Design/methodology/approach This paper analyzes the impact of intellectual capital on the output of the Hungarian firms in a fixed effect dynamic model, using the lagged dependent and explanatory variables method. This study is based on annual reports of Hungarian enterprises. Findings This study proved that intellectual capital was a relevant source of the effectiveness of the firms in Hungarian industry in the examined period, and structural capital had the strongest impact on productivity of the firms. Research limitations/implications The annual report as database nonetheless bears the specificity and the limitation of the model alike. Labor costs, the proxy for human capital can measure the level only indirectly. Intangible assets, the proxy for structural capital contain more items which are optional. Practical implications The results reflect that the internally developed knowledge became the most relevant source for Hungarian firms to increase their productivity, but externally generated innovation may offer further possible sources to boost their own efficiency. Originality/value Unlike the previous empirical research in Hungary the source of variables in this model is based on the data of annual reports. This database allows to examine a larger panel investigation for a longer period than those methods which collect data on a voluntary basis, e.g. Community Innovation Survey.

The impact of intellectual capital on SMEs’ performance in China

2019 ◽  
Vol 20 (4) ◽  
pp. 488-509 ◽  
Author(s):  
Jian Xu ◽  
Jingsuo Li
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Manufacturing Sector ◽  
Operating Efficiency ◽  
High Tech ◽  
Relational Capital ◽  
Content Type ◽  
Structural Capital ◽  
Capital Efficiency ◽  
The Impact

Purpose The purpose of this paper is to explore and compare the extent of intellectual capital (IC) and its four components in high-tech and non-high-tech small and medium-sized enterprises (SMEs) operating in China’s manufacturing sector, and to examine the relationship between IC and the performance of high-tech and non-high-tech SMEs. Design/methodology/approach The study uses the data of 116 high-tech SMEs and 380 non-high-tech SMEs listed on the Shenzhen stock exchanges during 2012–2016. The modified value added intellectual coefficient (MVAIC) model is used incorporating four components, namely, capital employed, human capital, structural capital and relational capital. Finally, multiple regression analysis is utilized to test the proposed research hypotheses. Findings The findings of this paper reveal that there is significant difference in MVAIC between high-tech and non-high-tech SMEs. The results further indicate a positive relationship between IC and financial performance of high-tech and non-high-tech SMEs. Specifically, IC is positively associated with firms’ earnings, profitability and operating efficiency. Additionally, capital employed efficiency, human capital efficiency and structural capital efficiency are found to be the most influential value drivers for the performance of two types of SMEs while relational capital efficiency possesses less importance. Practical implications This paper will provide a valuable framework for executives, managers and policy makers in managing IC within the Chinese context. Originality/value To the best knowledge of the authors, this is the first empirical study that has been conducted on high-tech and non-high-tech SMEs in the manufacturing sector in China.

Effect of intellectual capital disclosure on cost of equity capital: a study on Indian companies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amitava Mondal ◽  
Chiranjit Ghosh
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Research Work ◽  
Equity Capital ◽  
Negative Association ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Content Type ◽  
Structural Capital ◽  
The Impact

PurposeThe impact of the intellectual capital disclosure (ICD) on the cost of equity capital (COEC) is not well established in the aspect of the Indian scenario. So the objective of this paper is to examine not only the overall effect of ICD but also the individual effect of human capital disclosure (HCD), relational capital disclosure (RCD) and structural capital disclosure (SCD) on COEC.Design/methodology/approachThis research work is conducted by regressing COEC, firm size, leverage, industry type and disclosure index. The disclosure index is prepared based on content analysis of disclosure made in the annual reports of a sample of 50 companies listed in the Nifty 50 index for the year 2018–2019. But in this paper 20 companies are eliminated due to their negative COEC and rest 30 companies are used as the sample companies for this study.FindingsThe outcome of this study indicates a negative association between the disclosure of intellectual capital (IC) as a whole and the COEC. But a negative association only for two components (human capital and structural capital) with the COEC is found only when the association of COEC with the categories of ICD is considered.Originality/valueThis is the first study that examines the nexus between the level of ICD and its impact on the COEC in India context.

4.0 digital transition and human capital: evidence from the Italian Fintech market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Filomena Izzo ◽  
Viktoriia Tomnyuk ◽  
Rosaria Lombardo
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Regression Models ◽  
Principal Component ◽  
Critical Factor ◽  
Future Research ◽  
Content Type ◽  
Digital Era ◽  
Structural Capital ◽  
The Impact

PurposeIn the intellectual capital literature, no studies have examined the causal relationship between Italian Fintech companies' performance and intellectual capital, especially the impact of digital industrialization on human capital. This paper aims to fill this gap in measuring human capital efficiency in the Italian Fintech market.Design/methodology/approachThe authors adopt Pulic's model and define the intellectual capital through three components (human capital, structural capital and capital employed) and perform an exploratory analysis of the Italian Fintech companies by using principal component analysis. Then the authors investigate the effects of the intellectual capital and its components on the Italian Fintech companies' performance by using parametric and nonparametric regression models.FindingsResults of regression models reveal that human capital and employed capital are positively related to the companies' performance, except for the structural capital.Research limitations/implicationsThe study focuses on the Italian level, and future research could be extended to different European countries or to the global Fintech market. Moreover, it is advised to explore more components that contribute to intellectual capital measurement inside the companies operating in the 4.0 industrial revolution, such as the innovative capital and the relational capital.Practical implicationsThis study proposes a new vision for managerial procedures to find which features are critical for achieving profitability in this digital era. The study offers interesting reflections on the management decisions for both companies and public decision-makers. Results suggest that, among intellectual capital components, human capital plays a strategic role for the knowledge-intensive companies that are interested in potentiating their performance and competitiveness. Furthermore, this study finds that human capital is critical factor for achieving profitability in this digital era.Social implicationsThe Fintech sector is one that most benefited from the Digital Revolution, and if it is adequately managed, it can bring great benefits in terms of major employment, especially for the young population, and bring major financial inclusiveness all over the world.Originality/valueThis is the first study that examines the Italian Fintech market and analyzes the dependence relationship between companies' performance and intellectual capital components, identifying the role of human capital in a new completely digital sector. The analysis findings are strategic for the business decisions-making process.

scholarly journals Intellectual Capital in light of Creativity and Competitiveness: Overview of Organizations’ Intangible Assets.

2019 ◽  
pp. 1135-1143
Author(s):  
Ahmad Yousef Areiqat
Keyword(s):  
Human Capital ◽  
Intellectual Property ◽  
Intellectual Capital ◽  
Intangible Assets ◽  
Market Value ◽  
Book Value ◽  
Structural Capital ◽  
Property Assessment ◽  
To Come ◽  
The Impact

This research paper addresses several issues related to intellectual capital including a historical overview, the interest in elusive and intangible assets, and the impact of latest technological progress associated with the information technology developments. Ralph Stayer, CEO of Johnsonville Foods Company was the first to use the term “intellectual property” to refer to the organization’s intangible assets. This paper also identifies the concept of intellectual property being a set of all knowledge capacities of the organizations that help them achieve their goals. The intellectual property includes ideas, inventions, technology, general knowledge, computer soft wares and programs, designs, data skills, processes, creativity and applications in all organizations. The intellectual capital is knowledge that can be converted into profits. The components of this concept were identified as follows: Structural capital, human capital, social capital and the psychological capital. The paper also discusses various definitions provided by several researchers relating to intellectual capital, amongst them: Edvinsson & Malone, K. E. Svieby, Y. Malhorta, T. Stewart, Despres & Channvel, and Mckenzie & Winkelen. Moreover, the researcher tackled different measures used in intellectual property assessment and classified them in the following clusters: (1) descriptive measures/scales that describe some traits and characteristics and are based on exploring views related to identify the impact of the intellectual capital on organizations’ business (2) scales and models correlated to the intellectual capital and the intellectual property, which measure the intellectual capital components (3) market value scales and models which focus on the book value of knowledge assets and their market value (4) scales and models of knowledge revenues which are based on calculating returns on assets (ROA). The paper concluded stating that specific issues relating to companies and the nature of the market made it impossible to come up with certain results that can be generalized when making comparison among modern administrative trends or attitudes which defined the intellectual capital as intangible assets. Thus, the researcher urged researchers and parties interested in building up and upgrading companies’ capacities to exert intensive efforts to boost investment in human capital for its key and influential role in accomplishing excellence and enhance the position of these companies.

Intellectual capital vs the book-value of assets

2014 ◽  
Vol 15 (1) ◽  
pp. 65-82 ◽  
Author(s):  
Sang Ho Kim ◽  
Dennis Taylor
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Value Relevance ◽  
Share Price ◽  
Annual Reports ◽  
Content Type ◽  
Book Value ◽  
Listed Firms ◽  
Structural Capital ◽  
Tangible Assets

Purpose – The purpose of this paper is to provide new evidence, made possible by human capital data that became available after IFRS adoption, on the productivity of intellectual capital and its components. These productivity measures are modelled to determine their value-relevance in the share market, and the modelling is extended to comparative productivity measures for the book-value of assets. Design/methodology/approach – Financial data are sourced from financial databases and company annual reports on a sample of 160 Australian listed firms over a five-year period. Panel regression analysis is used to test five models built from Riahi-Belkaoui's (1999) general price model of the value-relevance of accounting numbers. Findings – The results show that the productivity of human capital, structural capital and intellectual capital are each significantly positively related to share price (i.e. have value-relevance), whereas the productivity of total assets at book-value is non-significant and tangible assets is inversely significant. Originality/value – This study constructs a new improved method of computing the amount of structural capital, and uses recently available financial statement data to provide first-time evidence on human capital and its inclusion in the determination of the amount of intellectual capital. These new models and data enable a direct comparison to be made between the value-relevance of intellectual and the book-value of assets.

Factors affecting performance of co-operatives in Malaysia

2016 ◽  
Vol 65 (5) ◽  
pp. 641-671 ◽  
Author(s):  
Hafizah Hammad Ahmad Khan ◽  
Mahazril 'Aini Yaacob ◽  
Hussin Abdullah ◽  
Siti Hajar Abu Bakar Ah
Keyword(s):  
Regression Analysis ◽  
Multiple Regression Analysis ◽  
Multiple Regression ◽  
Intellectual Capital ◽  
Intangible Assets ◽  
Pearson Correlation ◽  
Content Type ◽  
Factors Affecting ◽  
Structural Capital ◽  
The Impact

Purpose – The purpose of this paper is to investigate the factors affecting co-operatives performance by focussing on the roles of its intangible assets which are in the form of intellectual capital and members’ participation. Design/methodology/approach – Questionnaires have been distributed among co-operatives board of members of the 100 best co-operatives in Malaysia. This study used Pearson correlation and multiple regression analysis to examine the impact of intellectual capital and members’ participation on the co-operatives performance and determine the most influencing factors that affect the performance. Findings – Results showed that there is a positive relationship between structural capital, relational capital and members’ participation with the co-operatives performance while human capital has been found to have a negative relationship. This is further supported by the findings based on the multiple regression analysis whereby all the independent variables were found to be significant expect for structural capital. Based on the findings, this study proposed a model for co-operatives’ performance which is based on its intangible assets. Practical implications – Findings of this study would provide guidance for the co-operatives sector to improve its performance and indirectly help the government in realizing the nation economic goals. Originality/value – This study provided a better understanding on the performance of the co-operatives by focussing on the roles of its intangible assets. Apparently, there are very limited studies on intellectual capital which is based on co-operative framework and thereby this present study would fill in the gap. In addition, due to the objective of the co-operatives which differs from other types of organization, findings of this study might provide significant contribution on the study of intellectual capital.

scholarly journals The impact of intellectual capital on firm’s financial performance: empirical evidence from Bahrain

2020 ◽  
Vol 17 (4) ◽  
pp. 189-201
Author(s):  
Abdelmohsen M. Desoky ◽  
Gehan Abdel-Hady Mousa
Keyword(s):  
Human Capital ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Labor Costs ◽  
Return On Equity ◽  
Structural Capital ◽  
Customer Capital ◽  
Research Findings ◽  
Positive Correlations ◽  
The Impact

This study contributes to the intellectual capital (IC) area of literature by investigating the impact of IC on the firm’s financial performance of two main sectors in the Bahrain Bourse, financial and service sectors, during five years, 2013–2017. The study employs canonical correlation analysis as a unique statistical method to analyze data gathered from 29 sampled companies, representing 145 firm-year observations over the five years. Two groups of variables are employed. The first represents the firm’s financial performance with two variables (return on equity – ROE and return on assets – ROA), while the second includes three intellectual capital components, namely human, customer, and structural capital. Findings related to the financial sector reveal that all IC components (human capital, customer capital, and structural capital) have positive correlations with firm performance except for the labor costs variable (the sub-variable of human capital), which has a negative correlation with firm’s performance. Human capital is also found to be the most significant component of the IC, while structural capital is reported as the lowest effect on the firm’s performance, consistent with some previous research findings. Furthermore, the services sector results revealed that IC is significantly associated with the firm’s performance. Moreover, two sub-variables of human capital (number of Bahraini employees and labor costs) have the most significant impact on the firm’s performance.

The effect of intangible assets on sustainable growth and firm value – Evidence on intellectual capital investment in companies listed on Bucharest Stock Exchange

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Catalin Ionita ◽  
Elena Dinu
Keyword(s):  
Growth Rate ◽  
Intellectual Capital ◽  
Firm Value ◽  
Intangible Assets ◽  
Stock Exchange ◽  
Listed Companies ◽  
Sustainable Growth ◽  
Content Type ◽  
Sustainable Growth Rate ◽  
The Impact

PurposeThe present study investigates the connection between company investments in intellectual capital (IC) and how they translate into financial value. The aim is to test the impact of intangible assets on the firm value and its sustainable growth.Design/methodology/approachThe research employs computation models to determine the sustainable growth rate (SGR) and the firm value (FV), and by using the ordinary least squares (OLS) model through a linear regression assesses the relationship between the dependent variables and expenditures on intangibles like R&D, IT programs and patents. A sample of 42 companies has been selected out of the 78 listed at Bucharest Stock Exchange (BSE), based on the appropriateness of the information disclosed in the financial reports for the period 2016–2019.FindingsThe results show that intangibles classified as innovative competences (R&D and Patents) do not have a positive impact on SGR and FV in listed companies from Romania. Moreover, R&D has a negative and significant effect on FV, while IT Programs have a positive and significant impact on FV, but not on the SGR. Variables categorised as economic competencies (Brands, Shares held in associates and jointly controlled entities) and firm structure-specific variables (Leverage, Firm Performance) seem to have a significant effect on SGR and FV. Shares held in associates and jointly controlled entities is the variable that can have the biggest impact when it comes to FV for companies listed at BSE.Research limitations/implicationsDue to non-disclosure of specific information by some companies, or lack of investments in intangibles the sample had to be reduced and does not cover all listed companies.Practical implicationsCompanies listed on the Regulated Market from the Bucharest Stock Exchange should maintain their scale of liabilities at a reasonable level when financing intangible assets in order to ensure corporate long-term and sustainable development. Also, these companies should maintain awareness about the importance of intangible assets and invest more in specific sub-components, in order to sustain competitive advantage. Recognizing the roles of intangibles, managers need to develop strategies to invest in profitable intangibles by reasonably allocating their limited resources, in order to achieve sustainable growth and increase company success.Originality/valueStudies concerning the relation between investments in intangibles and sustainable growth rate and firm value of listed Romanian companies are very scarce. This paper reveals new research, never before undertaken, concerning expenditures on intangibles by Romanian companies and the valuation of such investments on Bucharest Stock Exchange.

Exploring the impact of intellectual capital on company reputation and performance

2018 ◽  
Vol 19 (5) ◽  
pp. 915-934 ◽  
Author(s):  
Gianluca Ginesti ◽  
Adele Caldarelli ◽  
Annamaria Zampella
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Corporate Reputation ◽  
Intangible Asset ◽  
Competition Authority ◽  
Data Set ◽  
Content Type ◽  
Capital Efficiency ◽  
And Performance ◽  
The Impact

Purpose The purpose of this paper is to analyse the impact of intellectual capital (IC) on the reputation and performance of Italian companies. Design/methodology/approach The paper exploits a unique data set of 452 non-listed companies that obtained a reputational assessment from the Italian Competition Authority (ICA). To test the hypotheses, this study implemented several regression analyses. Findings Results support the argument that human capital efficiency is a key driver of corporate reputation. Findings also reveal that companies, which obtained reputational rating under ICA scrutiny, show a positive relationship between IC elements and various measures of financial performance. Research limitations/implications The study focuses on a single country; it is not free from the imprecisions of Pulic’s VAIC model. Practical implications This paper recommends companies that are interested to achieve a robust reputation should consider the human capital as a strategic intangible asset. Second, the results suggest that companies with an ICA reputational rating are able to leverage their intangibles to potentiate performance and competitiveness. Originality/value This is the first empirical investigation on the contribution of IC in generating value for corporate reputation. Additionally, the study contributes to the literature on the link between IC and performance by examining a sample of firms not yet explored in prior research.

The impact of intellectual capital and knowledge flows on incremental and radical innovation

2018 ◽  
Vol 10 (2/3) ◽  
pp. 149-170 ◽  
Author(s):  
Duy Quoc Nguyen
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Intellectual Capital ◽  
Radical Innovation ◽  
Knowledge Flows ◽  
Innovation Performance ◽  
Incremental Innovation ◽  
Content Type ◽  
Radical Innovations ◽  
The Impact

PurposeThe purpose of this paper is to develop a theoretical and empirical exploration of link between organization intellectual capital and knowledge flows with its incremental and radical innovation performance.Design/methodology/approachThis paper adopts relevant literature of social capital and organizational learning to examine the impact of intellectual capital and knowledge flows on incremental and radical innovation based on surveying 95 firms. To test the research hypotheses, regression analysis is used.FindingsResults of the study show that human capital and top-down knowledge flows significantly and positively influence both incremental and radical innovations. Social capital and bottom-up knowledge flows do not have any significant impact on incremental or/and radical innovation. Organizational capital has a positive impact on incremental innovation as expected.Practical implicationsThe results offer several practical implications for business managers to harvest its knowledge bases resident in the firm’s different forms appropriately to make innovation successful. Particularly, knowledge resident in human capital and organizational capital is useful for making incremental innovation. Especially, new knowledge, new skills and new perspectives resident in human capital are crucial important for making radical innovation. Both incremental and radical innovations are positively influenced by dynamic managerial capabilities.Originality/valueThis study contributes to literature by providing new evidence linking organization intellectual capital and knowledge flows with its innovation performance. Especially, the missing link between top-down knowledge flows and radical innovation is empirically examined. Value of this study is that social capital and bottom-up knowledge flows are not universally beneficial for enhancing innovation and their impacts on innovation performance are context dependent and more sophisticated than it is recognized in the literature.

Sign in / Sign up

Export Citation Format

Share Document