Crowdfunded and then? The role of intellectual capital in the growth of equity-crowdfunded companies

2020 ◽  
Vol 24 (4) ◽  
pp. 475-494
Author(s):  
Ciro Troise ◽  
Diego Matricano ◽  
Elena Candelo ◽  
Mario Sorrentino
Keyword(s):  
Intellectual Capital ◽  
Product Innovation ◽  
Employment Growth ◽  
Positive Impact ◽  
Research Field ◽  
Relational Capital ◽  
Quantitative Methodology ◽  
Content Type ◽  
The Impact ◽  
Industry Experience

Purpose This paper aims to investigate whether and to what extent equity crowdfunding (ECF) is able to build enduring businesses. This research explores the post-campaign growth of equity-crowdfunded companies and analyses the impact of intellectual capital (IC) on their growth. To achieve the above aim, we provide a theoretical framework that includes the three well-known dimensions of IC – i.e. human, structural and relational capital – as independent variables and company growth, meant as sales and employment growth, as dependent variable. Design/methodology/approach This research uses a quantitative methodology based on two regression analyses. The authors use hand-collected data on 51 successful equity-crowdfunded projects listed on seven Italian platforms. Findings The authors find that three variables, namely prior industry experience (human-capital), product innovation (structural-capital) and equity offered (relational-capital) are significant and positively related to the growth of equity-crowdfunded companies. In particular, prior industry experience positively influences sales growth; product innovation positively influences employment growth. Equity offered, instead, has a strong positive impact on both sales and employment growth. Companies that offer a larger percentage of equity during the campaign disclose higher probabilities of growth. Practical implications The study has useful implications for several stakeholders, in particular, founders, platform managers, crowdfunders, policy makers and authorities. Originality/value The results shed some light on the nascent research field related to post-campaign scenarios of equity-crowdfunded companies. This paper is the first to explore the impact of IC on the growth of companies funded through ECF.

The impact of intellectual capital and related party transactions on contractual costs

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahdi Salehi ◽  
Samira Ahmadzadeh ◽  
Fahimeh Irvani Qale Sorkh
Keyword(s):  
Intellectual Capital ◽  
Positive Impact ◽  
Stock Exchange ◽  
Relational Capital ◽  
Statistical Population ◽  
Content Type ◽  
Structural Capital ◽  
Cash Compensation ◽  
Negative Effect ◽  
The Impact

PurposeThe present study aims to assess the potential effects of intellectual capital (IC) and disclosure of firms' affiliate transactions on contractual costs (CC).Design/methodology/approachThe statistical population of the study includes 768 firm-year observations listed on the Tehran Stock Exchange during 2012–2017. According to Pulic's model, the authors divide IC into three components, such as human capital (HC), relational capital and structural capital (SC). CC is also measured by utilising two variables of board cash compensation and unexpected reward of managers.FindingsThe results show that there is a negative and significant relationship between HC and CC. In contrast, the authors find that relational capital and SC have a positive impact on CC. The authors’ further analyses also demonstrate that disclosure of transactions with affiliates has a negative effect on unexpected rewards of managers.Originality/valueSince there is no conducted study, which discusses the relationship between IC and contractual cost, this paper might be considered the primary studies conducted in this line of literature, specifically in emerging markets. Moreover, to the best of the authors' knowledge, this is the first study investigating the potential impact of disclosure of selling and purchasing transactions, separately, on the director's unexpected reward.

Intellectual capital and environmental concern in subsistence small businesses

2017 ◽  
Vol 28 (2) ◽  
pp. 214-230 ◽  
Author(s):  
Carlos Maria Jardon ◽  
Amandio Dasilva
Keyword(s):  
Intellectual Capital ◽  
Small Businesses ◽  
Environmental Concern ◽  
Partial Least Square ◽  
Least Square ◽  
Relational Capital ◽  
Content Type ◽  
Sustained Development ◽  
Structural Capital ◽  
The Impact

Purpose Small businesses created as a subsistence activity (subsistence small businesses (SSBs)), often are oriented towards the short term. The environmental performance, by contrast, is an indicator of long-term strategies. The purpsoe of this paper is to analyse how intellectual capital (IC) dimensions affect environmental concern, preparing SSBs to have a proper environmental behaviour in the future. Design/methodology/approach A method based on the partial least square technique is suggested to select the model and estimate the parameters. A sample of 113 small businesses in the timber industry in a region of Argentina was selected for this study. Findings The results indicate that IC promotes environmental concern. Relational capital directly affects environmental concern, human capital and structural capital and these, in turn, indirectly affect the environmental concern through relational capital in SSBs. Research limitations/implications The sample used is a cross-section. IC is subjectively measured. This paper only studies small businesses in the timber sector in a region of Latin America. Practical implications This paper enables practitioners and scholars to understand and make legitimate decisions and conclusions that can foster SSB growth in environmental concern. The paper suggests a combination of strategies in order to achieve a sustained development. Originality/value The authors tested the impact of dimensions of IC on environmental concern in SSB of developing countries, showing the importance of IC in sustained strategies in these companies.

scholarly journals The association between intellectual capital and financial performance in the Islamic banking industry

2019 ◽  
Vol 13 (1) ◽  
pp. 75-93 ◽  
Author(s):  
A.A. Ousama ◽  
Helmi Hammami ◽  
Mustafa Abdulkarim
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Positive Impact ◽  
Value Added ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Gcc Countries ◽  
The Impact

Purpose The purpose of this study is to empirically investigate the impact of intellectual capital (IC) on the financial performance of Islamic banks operating in the Gulf Cooperation Council (GCC) countries. Design/methodology/approach The study measures IC by the value added intellectual coefficient model. A regression analysis was used to assess the impact of IC on financial performance. The research sample consisted of Islamic banks operating in the GCC countries during the years 2011, 2012 and 2013. Data originated from the annual reports of Islamic banks. Findings The results support the thesis that IC has a positive impact on the financial performance of Islamic banks. Even though the average IC is lower than that reported in other studies, the positive effect on financial performance is obvious. The findings also show that human capital (HC) is higher than capital employed (CE) and structural capital (SC). The study reveals that SC has an insignificant impact on the financial performance of the Islamic banks compared to CE and HC. Practical implications The findings provide empirical evidence that IC affects the Islamic banks’ financial performance. It helps Islamic banks in the GCC countries to understand how to use their IC efficiently, especially SC as it is yet to be used efficiently. Also, the findings benefit the relevant authorities (e.g. legislators and central banks) who could use them to emphasise strategic policy reforms whenever required. Originality/value The current research adds to the empirical studies in the GCC countries as it views the region as a collective as opposed to individual countries. It also extends the IC and performance measurement literature of Islamic banks in the GCC countries. Moreover, the current study enriches the limited literature on IC in the context of Islamic banking.

Intellectual capital and dividend policy: the effect of CEO characteristics

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Enrico Battisti ◽  
Niccolò Nirino ◽  
Michael Christofi ◽  
Demetris Vrontis
Keyword(s):  
Intellectual Capital ◽  
Fixed Effects ◽  
Dividend Policy ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Chief Executive ◽  
Moderator Effect ◽  
Content Type ◽  
The Impact ◽  
Ceo Characteristics

PurposeThe paper aims to empirically test the impact of intellectual capital (IC) on a firm's dividend policy. Further, the authors investigate the moderator effect of Chief Executive Officer's (CEO) characteristics (gender, age and education) on this relationship.Design/methodology/approachThe research was carried out on the main Chinese listed companies reported on the CSI 100 Index from 2016 to 2018. To assess the impact of IC on the dividend policy and then the moderating effect of the characteristics of the CEOs, the authors used a fixed effects panel data analysis.FindingsThe results suggest a positive impact of IC on dividend policies. In addition, this relationship is enhanced when the CEO is a woman, and the lower the age the higher the effect is.Originality/valueTo the best of the authors' knowledge, this is the first empirical study that explores the effect of IC on a firm's dividend policy in an emerging country. Specifically, this paper demonstrates the impact that IC has on the creation of shareholder value. Furthermore, considering the characteristics of the CEOs, this study tests new moderating effects in the relationship between IC and value creation and highlights how IC, dividends and CEO characteristics can be useful in aligning interests between ownership and management, enriching the debate on agency theory.

The impact of strategic competitive innovation on the financial performance of SMEs during COVID-19 pandemic period

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hani El Chaarani ◽  
Prof. Demetris Vrontis ◽  
Sam El Nemar ◽  
Zouhour El Abiad
Keyword(s):  
Financial Performance ◽  
Product Innovation ◽  
Organizational Innovation ◽  
Positive Impact ◽  
Multiple Regression Model ◽  
Analysis Model ◽  
Content Type ◽  
Essential Condition ◽  
Marketing Innovation ◽  
The Impact

Purpose The purpose of this paper is to reveal the impact of strategic competitive innovation types on the financial performance of SMEs during a very critical period: the COVID-19 pandemic. Four strategic competitive innovation types are considered in this study: marketing innovation, organizational innovation, product innovation and processes innovation. Design/methodology/approach To examine empirically the relationship between strategic competitiveness and financial performance, data were collected from a sample of 426 Lebanese SMEs belonging to seven different sectors. Findings The empirical findings of principle component analysis model (PCA) and multiple regression model (MR) reveal that the ability to innovate is essential to an SME’s survival during a crisis. The results of this study confirm the existence of a positive impact of marketing innovation and processes innovation on the financial performance of SMEs during the COVID-19 pandemic. Practical implications Moreover, results suggest that, in Lebanese SMEs, product innovation and organizational innovation do not have any impact on the financial performance during the pandemic period. Originality/value This research focused on strategic competitive innovation as a broadly considered essential condition for the survival of SMEs during the COVID-19 crises.

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.

Customer involvement and NPD cost performance: the moderating role of product innovation novelty

2019 ◽  
Vol 34 (4) ◽  
pp. 711-722 ◽  
Author(s):  
Yi Li ◽  
Gang Li ◽  
Taiwen Feng ◽  
Jinpeng Xu
Keyword(s):  
Product Innovation ◽  
Positive Impact ◽  
Cost Performance ◽  
Content Type ◽  
Customer Involvement ◽  
Positive Effects ◽  
The Impact ◽  
Innovation Novelty ◽  
The Relationship

Purpose The purpose of this study is to examine the influence of product innovation novelty on the relationship between customer involvement and new product development (NPD) cost performance. Design/methodology/approach The authors use organizational information processing theory and adopt hierarchical regression and slope difference test to assess the relationships between constructs and test the hypotheses. Findings The authors evaluate the concept of product innovation novelty from the perspectives of suppliers and customers and infer that these two types of product innovation novelty exert a moderate effect on the relationship between customer involvement and NPD cost performance. First, product innovation novelty for customers strengthens the positive effects of customer involvement on the NPD cost performance. Second, product innovation novelty for suppliers weakens the positive impact of customer involvement on the NPD cost performance. The authors also find that the interaction between product innovation novelty for suppliers and product innovation novelty for customers weakens the positive impact of customer involvement on NPD cost performance. Originality/value The findings of this study explain the reasons for the controversies surrounding the impact of customer involvement on cost performance and discuss the role of product innovation novelty in customer involvement in NPD process. The results of this study can be used to establish whether customer involvement improves or weakens NPD cost performance and identify the role of product innovation novelty in NPD. The conclusions derived from this study can provide theoretical knowledge and managerial insights for both academicians and corporate professionals.

Value-added intellectual capital and financial performance: evidence from Mauritian companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Reena Bhattu-Babajee ◽  
Boopen Seetanah
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Positive Impact ◽  
Value Added ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Content Type ◽  
Data Framework ◽  
Long Run ◽  
The Impact

PurposeThe purpose of this paper is to empirically assess the impact of value-added intellectual capital (VAIC) on the financial performance (FP) of companies in Mauritius.Design/methodology/approachThe research uses a dynamic panel vector error correction model (PVECM) which simultaneously allows for endogeneity and causality issues among the variables used.FindingsThe results show that VAIC enhances corporate FP, with a reported lower effect in the short run as compared to the long run. Other important determinants of firm’s performance are asset turnover, capital turnover and firm’s size. Leverage, on the other hand, is observed to be performance reducing in nature. FP of the companies is also a significant determinant of VAIC, implying reverse causal effects exist between the two variables of interest, namely, VAIC and FP.Research limitations/implicationsThe study can be enhanced by doing an industry-specific comparison of the impact of VAIC on FP for more insights.Practical implicationsIt is recommended that managers pay more attention to the role of firms’ stock of tangible and intangible assets, as this has a positive impact on firms’ FP. Also, the results may help to increase awareness of the importance of effective intellectual capital (IC) management within an organization. More so, as demonstrated by Ståhle et al. (2011), VAIC indicates the efficiency of the company’s labor and capital investments within firms in Mauritius. This study may, therefore, enable Mauritian firms to measure their IC efficiency and develop policies to promote and improve upon their intellectual potential to enhance firm’s performance.Originality/valueThe main theoretical contribution of this paper relates to the assessment and conceptualization of the bi-directional relationship between VAIC and FP. It confirmed that there are self-reinforcing feedback effects between VAIC and FP. Methodologically speaking, this paper investigates the VAIC–FP nexus in a dynamic setting using a dynamic panel data framework, namely, a PVECM which also allows for additional insights into the short- and long-run effects.

The impact of intellectual capital on innovation generation and adoption

2016 ◽  
Vol 17 (4) ◽  
pp. 675-695 ◽  
Author(s):  
Mir Dost ◽  
Yuosre F. Badir ◽  
Zeeshan Ali ◽  
Adeel Tariq
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Competitive Advantage ◽  
Intellectual Capital ◽  
Positive Impact ◽  
Innovation Adoption ◽  
Organizational Capital ◽  
Content Type ◽  
The Impact ◽  
Innovation Generation

Purpose The purpose of this paper is to measure the separate and interrelated effects of three aspects of intellectual capital (human, social and organizational capital) on innovation generation and adoption. Design/methodology/approach Data were collected from 318 respondents’ of chemical firms. This study used multiple regression analysis to analyze the influence of human, organizational and social capital on innovation generation and adoption. Findings Results suggest that organizational capital exerts significantly positive impact on innovation adoption. In the same vein, social capital exerts significantly positive impact on both innovation generation and adoption. Moreover, interaction of social capital further strengthens the influence of organizational capital on innovation adoption. Contrary to hypotheses, human capital does not exert significant influence on innovation generation. However, interaction of social capital further strengthens the impact of human capital on innovation generation. Practical implications Findings offer implications for modern managers to utilize the knowledge that resides in firm’s different locations. It also enhances managerial ability to identify and apply these knowledge resources to expedite innovation generation and adoption. Originality/value Innovation generation and adoption plays a critical role in firm’s acquiring success and competitive advantage, yet the influence of intellectual capital on innovation generation and adoption mostly remains as unexplained puzzle. This study contributes to knowledge-innovation literature by examining the missing link between different types of knowledge and innovation generation and adoption. It also helps to comprehend the enabling factors through which firms capitalize upon, and obtain, a sustainable competitive advantage.

Students' perceptions regarding classroom attendance and its impact on their academic performance: evidence from a developing country

2020 ◽  
Vol 62 (6) ◽  
pp. 693-706
Author(s):  
Abdullah Almutawa ◽  
Mishiel Said Suwaidan
Keyword(s):  
Academic Performance ◽  
Positive Impact ◽  
Developed Countries ◽  
Research Field ◽  
Accounting Students ◽  
Public Higher Education ◽  
Chi Square ◽  
Content Type ◽  
Chi Square Test ◽  
The Impact

PurposeThe purposes of this study are to identify the reasons that prevent students from attending lectures, to examine the impact of absenteeism on their academic performance and to explore the role of gender in their attendance.Design/methodology/approachA questionnaire survey made up of statements was distributed to accounting students. Descriptive measures, a five-point Likert scale, Pearson's chi-square test and phi test were employed to achieve the study's objectives.FindingsThe study shows that most of the accounting students surveyed are aware of the importance of attending lectures, since they believe that attendance will have a positive impact on their understanding of course material and on their academic performance. The study indicates that overall academic performance and student attendance are related. It also indicates that there is a statistically significant association between the overall academic performance of accounting students and their gender.Practical implicationsTo gain greater insight into educators, academic institutes, researchers and parents concerning the reasons that lie behind students not attending accounting lectures in public higher education institutions in Kuwait and the effect of attendance on academic performance.Originality/valueMost prior studies have been conducted in developed countries and Western contexts. Especially, with the potential perceived differences in cultures and norms, this empirical study is expected to contribute to fill the gap in this research field.

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