The moderating role of corporate governance on the relationship between intellectual capital efficiency and firm's performance: evidence from Saudi Arabia

2017 ◽  
Vol 14 (4) ◽  
pp. 295 ◽  
Author(s):  
Allam Mohammed Hamdan ◽  
Amina Mohammed Buallay ◽  
Bahaaeddin Ahmed Alareeni
Keyword(s):  
Corporate Governance ◽  
Saudi Arabia ◽  
Intellectual Capital ◽  
Capital Efficiency ◽  
The Relationship ◽  
Moderating Role

scholarly journals Intellectual Capital and Firm Performance of Listed Firms in Nigeria: Moderating Role of Corporate Governance

2021 ◽  
Vol 10 (1) ◽  
pp. 1-12
Author(s):  
Adesanmi Timothy Adegbayibi
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Investment Strategy ◽  
Governance Mechanism ◽  
Ex Post ◽  
And Performance ◽  
The Relationship ◽  
Moderating Role

The low performance of Nigerian firms despite investment in intellectual capital is a major concern. While studies have shown that corporate governance practices strengthens the subsisting relationship between investment in intellectual capital and performance in the  developed economies, this moderating effect in Nigeria is yet to be adequately explored as research focus is limited to possible effects of intellectual capital and performance. It is against this background, this study investigated the moderating role of corporate governance on the relationship between intellectual capital and performance of listed non-financial companies in Nigeria. The study adopted ex-post facto research design, and data were drawn from the audited annual reports of fifty (50) listed non-financial firms for a period of 2007 to 2017. Multiple regression techniques were employed to test the relationship among the variables. The results of the study revealed that both intellectual capital and corporate governance drive financial performance as the relationship is found significant in all components. The study concluded that corporate governance moderated the effect of investment in intellectual capital on financial performance. The study recommends that Board of directors should adopt measurable corporate governance mechanism which strengthens and helps in investment strategy that increases and improves performance. Also, there is need to entrench corporate governance as a control strategy and impetus towards attaining organization’s goals.

scholarly journals The moderating effect of internal audit on the relationship between corporate governance mechanisms and corporate performance among Saudi Arabia listed companies

2019 ◽  
Vol 64 (4) ◽  
pp. 143 ◽  
Author(s):  
Ebrahim Mohammed Al Matari ◽  
Mahfoudh Hussein Mgammal
Keyword(s):  
Corporate Governance ◽  
Saudi Arabia ◽  
Audit Committee ◽  
Corporate Performance ◽  
Internal Audit ◽  
Moderating Effects ◽  
Corporate Governance Mechanisms ◽  
The Relationship ◽  
Moderating Role

<p>This study primarily aimed to assess the internal audit function’s ability to detect and self-report fraud. The paper investigated the moderating role of internal audit on the relationship between corporate governance mechanisms and corporate performance (ROA) and the direct effect of corporate governance characteristics and internal audit characteristics on corporate governance of firms listed in the stock market of Saudi Arabia. one hundred and eighty-eight observations obtained from forty-seven Saudi financial firms were used in this study for the years 2014-2017. The study used the FGLS regression to test the variables relationships and to test the moderating effects of internal auditor on the corporate governance characteristics and corporate performance. The obtained empirical results supported a significant positive relationship between non-executive board, audit committee size, audit committee independence and internal audit profession, and corporate performance. Negative significant findings were also observed between the board size, internal audit size and internal audit education, and corporate performance. As for the moderating effects, the results supported a significant moderating role of internal audit size on the size of the board and its relationship with corporate performance. This study extends past studies dedicated to testing the agency theory and resource dependence theory as underpinning theories in examining the relationship between corporate governance and corporate performance. The study is expected to contribute to conceptual and theoretical studies by highlighting issues concerning corporate governance practice in Saudi listed firms. The study focused on the internal audit committee characteristics, corporate governance characteristics and the corporate governance best practices that practitioners can utilized when it comes to the role of internal audit committee.</p>

scholarly journals The Moderating Role of Intellectual Capital between Relationship of Bank Specific Factors and Credit Risk of Islamic Banks

2019 ◽  
Vol 2 (4) ◽  
pp. 79-87
Author(s):  
Muhammad Nawaz ◽  
Alias Mat Nor ◽  
Habibah Tolos
Keyword(s):  
Credit Risk ◽  
Intellectual Capital ◽  
Management Policy ◽  
Annual Reports ◽  
Future Research ◽  
Islamic Banks ◽  
Relationship Of ◽  
The Relationship ◽  
Moderating Role

Purpose-The Objective of this study is to investigate the moderating role of Intellectual Capital between the relationship of Bank internal factor and Credit Risk in Islamic banks of Pakistan. Design/Methodology-Panel data are obtained from annual reports of 4 Islamic banks of Pakistan from the period 2006 to 2017. These are analyzed using hierarchical regression techniques, via Eviews 9 software. Findings-The results showed that intellectual capital significantly moderates the relationship of bank internal variable and credit risk in Islamic banks in Pakistan. Practical Implications-The study found that Intellectual Capital is a very important driver for credit risk. The investment in Intellectual Capital may lower the credit risk which will further help in the growth and sustainability of the bank and hence the growth in the economy. The results of the study will be useful for bank management, policy maker, and regulator and academia for future research.

The relationship between corporate governance and intellectual capital

2019 ◽  
Vol 61 (2) ◽  
pp. 384-401 ◽  
Author(s):  
Amina Buallay ◽  
Allam Hamdan
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Intellectual Capital ◽  
Content Type ◽  
Listed Firms ◽  
Pooled Data ◽  
Structural Capital ◽  
Capital Efficiency ◽  
High Level ◽  
The Relationship

Purpose The purpose of this study is to examine the moderating role of firm size on the relationship between corporate governance (CG) and intellectual capital (IC) efficiency. Design/methodology/approach The methodology was a pooled data for three years (2012-2014) for 171 listed firms, resulting in 489 observations. Findings The findings revealed that the inclusion of firm size as a moderating variable has influenced positively only the relationship between CG principles and capital employed efficiency (CEE). Further, the finding showed that the two IC components namely, human capital efficiency and structural capital efficiency, tend to be higher with firms that high level of CG adoption. However, CEE tends to be higher with firms that have lower level of CG adoption. Other finding shows that CG index was significant with the three IC components. Originality/value Such information will help the stakeholders, investors, decision-makers, regulators, policymakers and scholars to improve their knowledge about IC. Furthermore, it will be useful for firms to place their priorities regarding the internal system and financial plans for effective and efficient use of CG and IC.

How does intellectual capital efficiency affect firm performance? The moderating role of family management

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yolanda Ramírez ◽  
Julio Dieguez-Soto ◽  
Montserrat Manzaneque
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Family Management ◽  
Content Type ◽  
Intangible Resources ◽  
Structural Capital ◽  
Capital Efficiency ◽  
The Impact ◽  
Moderating Role

PurposeThe purpose of this paper is twofold: to know whether those firms that achieve greater efficiency from their intangible resources (intellectual capital) also obtain greater performance; and to analyze the moderating role of family management on that relationship in small to medium-sized enterprises (SMEs).Design/methodology/approachThis paper conducts an empirical study with different econometric models using a panel data sample of 6,132 paired firm-year observations from Spanish manufacturing SMEs in the period 2000–2013.FindingsThe findings suggest that intellectual capital efficiency is a key factor that allows the firm to achieve and maintain competitive advantages, obtaining greater performance. Additionally, this research also shows that the moderating role of family management can be a double-edged sword depending on the type of intangible resources.Practical implicationsThis paper may give managers an insight in how to better utilize and manage intangible resources available in their firms to improve competitive advantage and ultimately firm performance. Additionally, on the basis of the Socioemotional Wealth perspective (SEW), this article argues that family-managed firms that focus on SEW preservation can enhance the impact of structural capital efficiency on performance.Originality/valueThis paper extends the prior literature by studying the joint effects of intellectual capital efficiency, distinguishing between human capital and structural capital efficiency, and family management on performance in the context of SMEs.

scholarly journals Corporate Governance Application, Audit Quality and Audit Report Lag: The Moderating Role of Law Compliance

2019 ◽  
Vol 10 (4) ◽  
pp. 164
Author(s):  
Yenny Dwi Handayani ◽  
Ewing Yuvisa Ibrani
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Audit Quality ◽  
Manufacturing Companies ◽  
Audit Report ◽  
The Relationship ◽  
Moderating Role

This study aims to examine the effect of corporate governance application and audit quality on audit report lag. Special attention is paid to investigate the moderating role of law compliance in the relationships. 180 manufacturing companies are observed during the three years of observation (2013-2015). Data are analyzed using moderated regression analysis (MRA). The results show that corporate governance application and audit quality have no effect on audit report lag. While law compliance moderates the relationship between corporate governance application and audit report lag.

scholarly journals Impact of Intellectual Capital Efficiency on Profitability (A Case Study of LSE25 Companies)

2008 ◽  
Vol 13 (2) ◽  
pp. 81-98 ◽  
Author(s):  
Muhammad Abdul Majid Makki ◽  
Suleman Aziz Lodhi
Keyword(s):  
Intellectual Capital ◽  
Regression Models ◽  
Value Added ◽  
Net Profit ◽  
The World ◽  
Capital Efficiency ◽  
Successful Business ◽  
The Relationship

The aim of this study is to examine the relationship between intellectual capital efficiency and the firm's profitability. The importance of intellectual capital (IC) and the related philosophy of the knowledge economy have captured the attention of researchers and business enterprises in the World Trade Organization (WTO) era. IC is widely recognized as a tool that is critical to running a successful business in a highly competitive environment. Various models have been introduced to measure the numerous facets of IC, including the Skandia navigator, Tobin's Q, and value added intellectual coefficient (VAIC). This article examines the role of IC efficiency in the firm’s net profit using the VAIC developed by Ante Pulic (1998). It also investigates its correlation with the firm’s profitability, using regression models.

scholarly journals The Effect of Intellectual Capital and Good Corporate Governance on Company Value Mediated by Competitive Advantage

2021 ◽  
Vol 22 (2) ◽  
Author(s):  
Selvia Roos Ana ◽  
Agung Budi Sulistiyo ◽  
Whedy Prasetyo
Keyword(s):  
Corporate Governance ◽  
Competitive Advantage ◽  
Intellectual Capital ◽  
Firm Value ◽  
Capital Good ◽  
Company Value ◽  
Good Corporate Governance ◽  
The Relationship ◽  
A Company

Abstract:  This study examines the effect of the relationship between intellectual capital, good corporate governance, and firm value by using competitive advantage as mediation. Design/methodology/approach :  This study uses a sample of companies registered in CGPI during the 2014-2018 period. Data analysis using regression and path analysis.Research findings :  The research results show that the creation of a competitive advantage is inseparable from the role of intellectual capital and good corporate governance. In addition, competitive advantage is able to increase firm value but unfortunately it is not able to mediate company value.Theoretical contribution/ Originality :  This study uses M-VAIC to measure intellectual capital where in this measurement there is additional relational capital, and the use of competitive advantage as a mediating variable.Practitioner/Policy implication : This study proves the resourced-based theory which states that a company can win the competition by having a competitive advantage so that in the end it can increase firm value.Research limitation/Implication:  This study only includes CGPI listed companies as the research sample. In addition, the independent variables used are limited to intellectual capital and good corporate governance. Keywords:  intellectual capital, good corporate governance, competitive advantage, company value

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