The nexus between structural capital efficiency and agency costs: evidence from listed non-financial firms in Nigeria

PurposeIn developed countries, banks are perceived to accumulate a higher level of intellectual capital than firms in other sectors. However, this perception has not been considered or tested in the context of an emerging market such as Vietnam, which has one of the most dynamic economies in the Asian region. This study estimates and compares the level of accumulation of intellectual capital and its four components by financial and nonfinancial firms in Vietnam. Furthermore, this study examines the relationship between intellectual capital and its components and the performance of financial and nonfinancial firms.Design/methodology/approachThis study uses data collected from the annual reports of 75 financial and 75 nonfinancial firms in Vietnam from 2011 to 2018. A modified value-added intellectual coefficient model is adopted to measure the level of intellectual capital at firms. Various aspects of intellectual capital are considered, including the efficiency of human capital, structural capital, capital employed and relational capital. In addition, the generalized method of moments is used to ensure the robustness of the findings.FindingsFindings in this study indicate that financial firms in Vietnam have accumulated a higher level of intellectual capital than nonfinancial firms. In addition, intellectual capital contributes positively to financial firms' performance. Three components of intellectual capital – structural capital efficiency, capital employed efficiency and relational capital efficiency – positively affect performance by financial firms.Research limitations/implicationsThis study is limited to financial and nonfinancial firms in Vietnam. Empirical studies in the future should incorporate the efficiency aspects of these types of firms because different industries might have different characteristics, in particular, their current efficiency level, which might cause differences in relation to the accumulation of intellectual capital.Practical implicationsThe findings of this study provide valuable evidence and implications for executives and policymakers in creating, managing and enhancing intellectual capital within the Vietnamese context, in particular in the financial sector.Originality/valueTo the best of our knowledge, this is the first empirical study conducted in the context of Vietnam, with the following two objectives: (1) to measure and compare the level of accumulation of intellectual capital by financial and nonfinancial firms in Vietnam; and (2) to examine the contribution of intellectual capital and its components to the performance by financial and nonfinancial firms in Vietnam.

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Intellectual Capital and Firm Performance across Pakistani Industries

Business and Economic Research ◽

10.5296/ber.v11i4.19132 ◽

2021 ◽

Vol 11 (4) ◽

pp. 56

Author(s):

Muhammad Ahmad ◽

Rohani Mohd Rus

Keyword(s):

Firm Performance ◽

Intellectual Capital ◽

Value Added ◽

Service Industries ◽

Financial Firms ◽

Generalized Methods Of Moments ◽

Capital Efficiency ◽

And Performance ◽

Methods Of Moments ◽

The Relationship

This study sheds light on the differences in intellectual capital (IC) efficiencies across non-financial sectors in Pakistan and determines the relationship between IC and firm performance. The study used sample of 155 non-financial firms from the manufacturing and service industries of Pakistan for the period 2009-2018. This study contributes to IC research by applying modified value-added intellectual capital (MVAIC) model with relationship to firm performance (return on assets and Tobin’s Q) of Pakistani non-financial firms which was overlooked by the previous researchers. In addition, to deal with endogeneity, the dynamic panel generalized methods of moments regression is applied to test the relationship between IC and performance. Findings provide evidence that different sectors in non-financial industries manage IC components differently. IC increases both market-based performance and accounting-based performance of Pakistani firms. Among all IC components, human capital efficiency is an important determinant of firm performance. The implication can provide help managers and investors to understand the IC to increase the firm performance.

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The relationship between corporate governance and intellectual capital

International Journal of Law and Management ◽

10.1108/ijlma-02-2018-0033 ◽

2019 ◽

Vol 61 (2) ◽

pp. 384-401 ◽

Cited By ~ 6

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.

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Intellectual Capital and Corporate Performance: Evidence From Banking Industry of Bangladesh

International Journal of Human Resource Studies ◽

10.5296/ijhrs.v10i1.16146 ◽

2020 ◽

Vol 10 (1) ◽

pp. 234

Author(s):

Md Nur Nabi ◽

Qijie Gao ◽

Md Takibur Rahman ◽

Shaun O. Britton ◽

Mohammad Muzahidul Islam

Keyword(s):

Organizational Development ◽

Intellectual Capital ◽

Significant Relationship ◽

Banking Industry ◽

Corporate Performance ◽

Value Added ◽

Economic Life ◽

Structural Capital ◽

Capital Efficiency ◽

High Degree

Intellectual capital (IC) is about the greatest competitive weapon for an organizational development. It becomes the most significant factor in the organization’s economic life. Therefore, the purpose of this paper is to examine the relationship between intellectual capital (IC) and corporate performance of the banking industry. This study used econometric models against five years of panel data from 2012 to 2016 of commercial banks in Bangladesh. The empirical study revealed a positive and significant relationship between value added intellectual capital (VAIC) and banks’ performances. Further, only capital employed efficiency (CEE) as a component of VAIC has a significant relationship with banks’ performance. In addition, structural capital efficiency (SCE) has a very high degree of moderating power on CEE which can be transformed into corporate performance. This study enriches the existing literature of IC and corporate performance and it may be beneficial for the sustainable economic performances of banking industry of Bangladesh.

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

International Journal of Productivity and Performance Management ◽

10.1108/ijppm-03-2019-0119 ◽

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.

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Intellectual Capital and Financial Performance: Comparison With Financial and Pharmaceutical Industries in Vietnam

Frontiers in Psychology ◽

10.3389/fpsyg.2021.595615 ◽

2021 ◽

Vol 12 ◽

Author(s):

Xiao-Bing Zhang ◽

Tran Phuong Duc ◽

Eugene Burgos Mutuc ◽

Fu-Sheng Tsai

Keyword(s):

Pharmaceutical Industry ◽

Financial Performance ◽

Intellectual Capital ◽

Value Added ◽

Financial Industry ◽

Pharmaceutical Firms ◽

Financial Firms ◽

Positive Effects ◽

Capital Efficiency ◽

Pharmaceutical Industries

This study investigates the impacts of intellectual capital through Value-Added Intellectual Capital (VAIC) and its components: human capital efficiency (HCE) and structural capital efficiency (SCE) on financial performance in terms of return on assets (ROA) and return on equity (ROE). In addition, this study compares the effects between firms from financial and pharmaceutical industries. A total of 149 Vietnamese firms comprising of 108 financial firms and 41 pharmaceutical firms were examined. Based on the findings, VAIC and HCE show beneficial impacts on both financial performance measures, ROA, and ROE. However, SCE shows adverse and beneficial implications on ROA and ROE, respectively. In terms of industry comparison, VAIC has positive effects on ROA and ROE among the firms from financial industry, whereas it has no effect in the firms from pharmaceutical industry. The effect of HCE on ROA is stronger in the firms from financial industry than firms from pharmaceutical industry while the effect of HCE on ROE is stronger in the firms from pharmaceutical industry than firms from financial industry. The effect of SCE on ROA is stronger in the pharmaceutical firms than financial firms while the effect of SCE on ROE is stronger in the financial firms than pharmaceutical firms. Lastly, the implications of the importance of knowledge-based resources on value creation were elaborated.

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ANALISIS PENGARUH STRUCTURAL CAPITAL EFFICIENCY DAN CAPITAL EMPLOYED EFFICIENCY TERHADAP KINERJA KEUANGAN PADA SEKTOR PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2016 - 2018

Jurnal Akuntansi dan Bisnis Krisnadwipayana ◽

10.35137/jabk.v8i2.536 ◽

2021 ◽

Vol 8 (2) ◽

Author(s):

Esti Damayanti, SE., M.Si.

Keyword(s):

Structural Capital ◽

Capital Efficiency

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THE EFFECT OF INTELLECTUAL CAPITAL ON FINANCIAL PERFORMANCE IN THE ASEAN TELECOMMUNICATIONS SECTOR

JOURNAL OF ACCOUNTING, ENTREPRENEURSHIP AND FINANCIAL TECHNOLOGY (JAEF) ◽

10.37715/jaef.v2i1.1862 ◽

2021 ◽

Vol 2 (1) ◽

pp. 21-38

Author(s):

Christandy Adriel

Keyword(s):

Financial Performance ◽

Intellectual Capital ◽

Financial Statements ◽

Relational Capital ◽

Return On Assets ◽

Telecommunication Sector ◽

Independent Variables ◽

Structural Capital ◽

Negative Effect ◽

Capital Efficiency

Telecommunication sector plays an important role in people’s life, but its service in ASEAN nations are not as good as other nations. Currently, ASEANs telecommunication sector of financial performance (FP) is on a poor level and needs to be improved. Intellectual capital (IC) can increase FP. Every IC's component affects the FP, and this was tested on this research to see which component of IC is good to be invested to increase company’s FP. Independent variables used on this research are Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE), Relational Capital Efficiency (RCE), and Capital Employed Efficiency (CEE). The dependent variable is Return on Assets (ROA). This research used pooling data method from financial statements of ASEAN telecommunication company in the period of 2011 to 2018. The number of samples which fulfills the criteria were 273 samples. SPSS 20th version was used to analyses the data. The results indicate that FP is affected positively and significantly by HCE and CEE. However, SCE has a negative effect on FP significantly, while RCE does not affect FP. Keywords: Intellectual Capital, Financial Performance, E-VAIC, ASEAN Telecommunication.

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Intellectual Capital Terhadap Nilai Pasar Dan Kinerja Keuangan Perusahaan Dengan Value Added Intellectual Capital (Studi Pada Perusahaan Manufaktur di Bursa Efek Indonesia Tahun 2008-2011)

JURNAL INFORMASI, PERPAJAKAN, AKUNTANSI, DAN KEUANGAN PUBLIK ◽

10.25105/jipak.v7i2.4499 ◽

2019 ◽

Vol 7 (2) ◽

pp. 43

Author(s):

Sofie Sofie ◽

Ari Prihartini ◽

Rinda Liana

Keyword(s):

Human Capital ◽

Intellectual Capital ◽

Firm Value ◽

Statistical Tests ◽

Value Added ◽

Market Value ◽

Manufacturing Companies ◽

Structural Capital ◽

Capital Efficiency ◽

And Performance

This study aims to ident6 and analyze the effect of intellectual capital as one of the company's intangible assets to market value and financial performance.of the company-manufacturing companies using the Value Added Intellectual Capital (VAIC m). The analysis method used is multiple panels because the structure of the data used in this research is the data panel. The results of the hypothesis theory shows that the intellectual capital has significant effect on the market value and performance of the company. The three components of intellectual capital, as the physical capital efficiency, human capital and structural capital efficiency, have a positive effect on firm value and performance of companies that dproksi by ROA, ATO, ROE and OI / S. So do the results of statistical tests, except for the efficiency of the human capital and structural capital efficiency ROE against Of / S. The results show that intellectual capital is a factor that is very important and significant effect on the quality of the company which in turn directly affects firm value andfinancial performance of the company.

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Measuring intellectual capital efficiency: A case of football clubs in the UEFA Champion League

Corporate Governance and Organizational Behavior Review ◽

10.22495/cgobrv4i1p3 ◽

2020 ◽

Vol 4 (1) ◽

pp. 30-40

Author(s):

Md. Jahidur Rahman ◽

Siyan Ding

Keyword(s):

Human Capital ◽

Intellectual Capital ◽

Positive Impact ◽

Value Added ◽

Sports Industry ◽

Structural Capital ◽

Football Clubs ◽

Capital Efficiency ◽

Almost All ◽

Football Industry

The purpose of this study is to examine the intellectual capital efficiency of football clubs in the UEFA Champion League between 2010 and 2019. We measure the intellectual capital efficiency of each football club through Value Added Intellectual Coefficient (VAIC) method developed by Pulic (1998, 2004), Ghosh and Mondal (2009), Yalama (2013), Ozkan, Cakan, and Kayacan (2017). Using a sample of 10 football clubs from 7 countries, we find that almost all clubs use their intellectual capital efficiently with great coefficients. We also document that human capital, as the core of intellectual capital, has a positive impact on structural capital. Our finding is significant for sports managers to make strategic management of intellectual sources to create value in the football industry. It suggests that football clubs should pay more attention to intellectual capital like fan loyalty and talented players. Meanwhile, it helps the sports industry to play a great role of human capital in intellectual capital and to increase the competitive advantage of the enterprise.

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