Intellectual Capital, Political Uncertainty and Firm Performance: Evidence from Pakistan

This research has examined the impact of Intellectual Capital (IC) on performance of the firms in Pakistan while considering political uncertainty as moderating variable. The research used secondary data of firms, related to manufacturing sectors, listed in Karachi Stock Exchange - KSE 100 Pakistan for a ten-year period of 2010-2019. Value Added Intellectual Coefficient (VAIC) model by Pulic (1998) has been used to calculate IC and its components and ROA is used to measure firm’s performance. Regression Model has been employed to investigate the hypothetical relationship between IC and firm performance. Results of this paper revealed that CEE and CCE have a positive relationship with the financial performance of firms in Pakistan whereas SCE has negative effect on the financial performance of the firms. Furthermore, the findings suggest political instability as a significant moderating variable on the relationship among intellectual capital, its components and firms’ performance. This research is the first attempt in investigating the relative importance of intellectual capital success of any firm under political uncertainty.

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Intellectual Capital, Innovation and Firm Performance of Pharmaceuticals: A Study of the London Stock Exchange

Journal of Information & Knowledge Management ◽

10.1142/s0219649217500174 ◽

2017 ◽

Vol 16 (02) ◽

pp. 1750017 ◽

Cited By ~ 9

Author(s):

Shahid Amin ◽

Shoaib Aslam

Keyword(s):

Financial Performance ◽

Intellectual Capital ◽

Structural Equation ◽

Stock Exchange ◽

Value Added ◽

Secondary Data ◽

Sem Analysis ◽

Annual Reports ◽

London Stock Exchange ◽

The Impact

The objective of this study is to explore the empirical structural links among intellectual capital (IC), innovation and firm’s financial performance, furthermore, the impact of IC and innovation on firm’s financial performance has also been measured. Value added intellectual coefficient model (VAIC) has been used for the measurement of IC. Innovation is measured through research and development (R&D), products development and products in pipeline, whereas, financial performance is measured through traditional financial measures such as return on assets (ROA), return on equity (ROE), earnings per share (EPS), assets turnover ratio (ATO) and market-to-book ratio (MB). The study was based on secondary data, and it has been collected from the published annual reports of listed pharmaceutical firms in London Stock Exchange. The research was carried for the three year period of 2012–2014 and our sample consists of 207 firm-year observations. Structural Equation Modelling (SEM) technique is used to address cause–effect relationships among endogenous and exogenous constructs. Empirical results of SEM analysis support that IC and its components have positive and significant impact on innovation and firms’ financial performance. Moreover, innovation also has significant impact on firms’ financial performance. The study is valuable for the manager, decision makers and policy makers to recognise the value of IC and its philosophy to obtain and sustain competitive advantage through innovation.

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The impact of intellectual capital on firm performance: a study of Indian firms listed in COSPI

Journal of Intellectual Capital ◽

10.1108/jic-11-2017-0156 ◽

2018 ◽

Vol 19 (5) ◽

pp. 935-964 ◽

Cited By ~ 34

Author(s):

Neha Smriti ◽

Niladri Das

Keyword(s):

Firm Performance ◽

Intellectual Capital ◽

Value Creation ◽

Generalized Method Of Moments ◽

Value Added ◽

Secondary Data ◽

Share Price ◽

Content Type ◽

Listed Firms ◽

The Impact

Purpose The purpose of this paper is to examine the effect of intellectual capital (IC) on financial performance (FP) for Indian companies listed on the Centre for Monitoring Indian Economy Overall Share Price Index (COSPI). Design/methodology/approach Hypotheses were developed according to theories and literature review. Secondary data were collected from Indian companies listed on the COSPI between 2001 and 2016, and the value-added intellectual coefficient (VAIC) of Pulic (2000) was used to measure IC and its components. A dynamic system generalized method of moments (SGMM) estimator was employed to identify the variables that significantly contribute to firm performance. Findings Indian listed firms appear to be performing well and efficiently utilizing their IC. Overall, human capital had a major impact on firm productivity during the study period. Furthermore, the empirical analysis showed that structural capital efficiency and capital employed efficiency were equally important contributors to firm’s sales growth and market value. The growing importance of the contribution of IC to value creation was consistently reflected in the FP of these Indian companies. Practical implications This study has robust theoretical grounds and employs a validated methodology. The present study extends knowledge of IC among academicians and managers and highlights its contribution to value creation. The findings may help stakeholders and policymakers in developing countries properly reallocate intellectual resources. Originality/value This study is the first study to evaluate IC and its relationship with traditional measures of firm performance among Indian listed firms using dynamic SGMM and VAIC models.

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Intellectual capital efficiency and market-based financial performance: Evidence from listed conglomerate companies

Corporate and Business Strategy Review ◽

10.22495/cbsrv2i2art4 ◽

2021 ◽

Vol 2 (2) ◽

pp. 31-42

Author(s):

Eniola Ayisat Sulaiman ◽

Abubakar Sadiq Kasum ◽

Wasiu Ajani Musa

Keyword(s):

Financial Performance ◽

Intellectual Capital ◽

Fixed Effects ◽

Value Added ◽

Secondary Data ◽

Lagrangian Multiplier ◽

Fixed Effects Model ◽

Analysis Technique ◽

Capital Efficiency ◽

The Impact

Having observed the rate at which dissimilarity occurs between market and book value, and management ignorance concerning the impact intellectual capital disclosure has on companies’ values spurred the interest to probe the association between the efficiency of value-added intellectual coefficient (VAIC) and market-based financial performance of listed Nigerian conglomerate companies. To accomplish the purpose of this study, secondary data were employed and extracted from annual audited reports of listed conglomerate companies in Nigeria from the period of 2010–2018. The data obtained were subjected to static panel data regression analysis technique. The random-effects model was adopted because the empirical result from Breusch and Pagan Lagrangian multiplier (BP-LM) and Hausman tests chose it over the fixed-effects model to produce better results. This study revealed that the value-added efficiency of capital employed (VACA), value-added efficiency of human capital (VAHU), and value-added efficiency of structural capital (STVA) are the drivers of intellectual capital in the conglomerate sector. This study concluded that elements of intellectual capital have a strong power on market-based financial performance. This study recommends that information on intellectual capital components should be reported in ways they deem fit by developing a model of intellectual capital disclosure that complies with the International Accounting Standard Board (IASB)

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The Influence of Intellectual Capital on Firm Value towards Manufacturing Performance in Indonesia

International Conference on Eurasian Economies 2015 ◽

10.36880/c06.01192 ◽

2015 ◽

Author(s):

Euphrasia Susy Suhendra

Keyword(s):

Firm Performance ◽

Intellectual Capital ◽

Firm Value ◽

Structural Equation ◽

Stock Exchange ◽

Value Added ◽

Secondary Data ◽

Market Valuation ◽

Annual Reports ◽

Manufacturing Companies

The aim of this study is to analyse the influence of intellectual capital on firm value through firm performance (profitability, productivity, market valuation and growth). Intellectual capital is measured by using a Value Added Intellectual Coefficient (VAIC™). Firm value is measured by Tobin's Q. The financial performance consists of Return on assets (ROA), Asset turn over (ATO), Market to Book Value (MB) and Earnings per Share (EPS). Data from this study was obtained from financial statements and annual reports of manufacturing companies that are taken from the Indonesia Stock Exchange. The sample of this study is manufacturing companies listed on the Indonesia Stock Exchange during the year of 2011-2013 for 37 companies. The types of data used are secondary data in the form of annual reports by the manufacturing companies. Empirical analysis is conducted by using Structural Equation Modelling (SEM). The results of this study indicate that Intellectual capital has a significant effect on profitability, market valuation and growth. Intellectual capital does not significantly affect productivity and firm value. Market valuation significantly affects the firm value. Profitability, productivity and growth do not significantly affect firm value. Furthermore, Intellectual capital which is intervened by the firm performance has a positive effect on firm value.

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MODAL INTELEKTUAL PADA PERUSAHAAN-PERUSAHAAN DI SEKTOR KEUANGAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2010-2014

JURNAL EKONOMI DAN KEBIJAKAN PEMBANGUNAN ◽

10.29244/jekp.6.1.2017.58-81 ◽

2018 ◽

Vol 6 (1) ◽

pp. 58-81

Author(s):

I K Marla Lusda ◽

Hari Wijayanto ◽

Dedi Budiman Hakim

Keyword(s):

Financial Performance ◽

Intellectual Capital ◽

Stock Exchange ◽

Sample Selection ◽

Value Added ◽

Secondary Data ◽

Financial Sector ◽

Exchange Measurement ◽

Productivity Variable ◽

Capital Value

This study aimed to analyze the company's intellectual capital in the financial sector. The financial sector companies listed in the Indonesian Stock Exchange (BEI) 2010-2014 was used as the sample. The sample selection using purposive sampling method. The data used in this study were secondary data from company annual report obtained from the official website of Indonesia Stock Exchange. Measurement of intellectual capital in this study using a model of Value Added Intellectual Coefficients (VAIC) and measurement of financial performance using ratio analysis with ROA as profitability variable, ATO as productivity variable, and GR as variable growth. The results showed that the overall financial performance of the financial sector in the period of observation were top performers and common performers. Based on the value of company’s intellectual capital, the intellectual capital components contributed most was human capital. Keywords: Finance, Intellectual capital, Value added intellectual coefficient, VAIC

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The Impact Of Psak 72 Implementation On Financial Performance In The Pandemic Time Covid-19 (Empirical Study On Real Estate Companies Registered In Indonesia Stock Exchange)

SENTRALISASI ◽

10.33506/sl.v10i1.1157 ◽

2021 ◽

Vol 10 (1) ◽

pp. 12

Author(s):

Duwi Rahayu Rahayu ◽

Imelda Dian Rahmawati ◽

Dina Dwi Oktavia Rini

Keyword(s):

Real Estate ◽

Empirical Study ◽

Financial Performance ◽

Negative Impact ◽

Stock Exchange ◽

Secondary Data ◽

Significant Negative Effect ◽

Negative Effect ◽

Real Estate Company ◽

The Impact

The purpose of this study is to examine the impact of the implementation of PSAK 72 on financial performance during the Covid-19 pandemic (empirical study of real estate companies listed on the Indonesian stock exchange). This research is a quantitative research, where the data used are secondary data in the form of financial statements of real estate companies. The sample of this study is a real estate company that provides periodic financial reports on the Indonesia Stock Exchange in 2019 and the second quarter of 2020 with a total of 46 sample companies. The results of the study indicate that PSAK 72 has a significant negative effect on the liquidity ratio, profitability ratio, activity ratio, and market ratio, while the implementation of PSAK 72 has no significant effect on the solvency ratio. This show, although the implementation of PSAK 72 has had a significant negative effect, companies have started to prepare for the implementation of PSAK 72 by conducting evaluations, adaptations and training for employees before actually implementing PSAK 72. The meaning of not fully implementing PSAK 72 has a negative impact on real estate company earnings, because the implementation of these standards was also followed by the Covid-19 pandemic which also resulted in a decrease in income for companies.

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MODAL INTELEKTUAL PADA PERUSAHAAN-PERUSAHAAN DI SEKTOR KEUANGAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2010-2014

JURNAL EKONOMI DAN KEBIJAKAN PEMBANGUNAN ◽

10.29244/jekp.6.1.58-81 ◽

2018 ◽

Vol 6 (1) ◽

pp. 58-81

Author(s):

I K Marla Lusda ◽

Hari Wijayanto ◽

Dedi Budiman Hakim

Keyword(s):

Financial Performance ◽

Intellectual Capital ◽

Stock Exchange ◽

Sample Selection ◽

Value Added ◽

Secondary Data ◽

Financial Sector ◽

Exchange Measurement ◽

Productivity Variable ◽

Capital Value

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THE EFFECTS OF INTELLECTUAL CAPITAL ON FIRM PERFORMANCE OF INDUSTRIAL SECTOR IN JORDAN

Humanities & Social Sciences Reviews ◽

10.18510/hssr.2020.8222 ◽

2020 ◽

Vol 8 (2) ◽

pp. 184-192 ◽

Cited By ~ 1

Author(s):

Kamelia Moh’d Khier Al Momani ◽

Nurasyikin Jamaludin ◽

Wan Zalani @ Wan Zanani Wan Abdullah ◽

Abdul-Naser Ibrahim Nour

Keyword(s):

Firm Performance ◽

Intellectual Capital ◽

Stock Exchange ◽

Value Added ◽

Industrial Sector ◽

New Employees ◽

Industrial Companies ◽

New Findings ◽

Amman Stock Exchange ◽

The Impact

Purpose of the study: This paper aims to examine whether intellectual capital (IC), measured through the value-added intellectual coefficient (VAICTM) affects the firm performance of the industrial sector in the Amman Stock Exchange (ASE). Methodology: The sample comprised 50 industrial companies listed in ASE over the period 2008-2017. The methodology included estimating the impact of IC, measured through VAICTM and its components on the market to book ratio (M/B) and earning per share (EPS). Research hypotheses were tested through the display of descriptive statistics, multicollinearity, normality tests, correlation matrix, and multiple regression models. Main Findings: The results indicate a positive relationship between VAICTM with the M/B ratio and EPS. As for the M/B ratio, the result is a positive significant relationship for the CEE but not for the SCE, and HCE. However, the results are counterproductive for EPS and found HCE, and SCE has a significant impact on the EPS but CEE not significant. Applications: The results suggest that industrial companies in Jordan must hold practical and knowledge experiences because it is vital for their competitive advantage, and must reduce unemployment rates by employing new employees with expertise and skills. The present study integrates previous methodologies in order to investigate the relationships between IC and firm performance of industrial companies listed on the ASE. Novelty/Originality of this study: This study extends previous studies on intellectual capital and firm performance in Jordan by incorporating more samples and the latest period of study. In addition, it also shed some new findings on the effect of intellectual capital on the M/B ratio and EPS.

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PENGARUH INTELLECTUAL CAPITAL, KEPEMILIKAN ASING, DAN STRUKTUR MODAL TERHADAP PROFITABILITAS

JURNAL INFORMASI, PERPAJAKAN, AKUNTANSI, DAN KEUANGAN PUBLIK ◽

10.25105/jipak.v16i2.9418 ◽

2021 ◽

Vol 16 (2) ◽

pp. 283

Author(s):

Syiva Widichesty ◽

Abubakar Arief

Keyword(s):

Capital Structure ◽

Financial Performance ◽

Intellectual Capital ◽

Financial Services ◽

Stock Exchange ◽

Secondary Data ◽

Foreign Ownership ◽

Analysis Technique ◽

Negative Effect ◽

Equity Ratio

At this time, as desired by stakeholders, the company's profitability is not only influenced by financial performance, but also other non-financial performance which can be measured through intellectual capital. Thus study aims to analyze the effect of intellectual capital, foreign ownership, and capital structure on profitability. In this study, capital structure was measured in debt to equity ratio (DER) and profitability as a return on assets (ROA). The study used a sample of non-financial services companies listed in the Indonesian Stock Exchange for 2015-2019. Data samples were determined by using a purposive sampling method. The study conduct 95 observation of 19 samples of the companies. The type of data used is the secondary data with the analysis technique using the regression data panel on eviews 9. The result showed partially that intellectual capital has a significant positive effect on ROA, while foreign ownership has a significant negative effect on Profitability but capital structure has no effect on profitability.

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IMPACT OF INTELLECTUAL CAPITAL ON FINANCIAL PERFORMANCE

JOURNAL OF APPLIED MANAGERIAL ACCOUNTING ◽

10.30871/jama.v1i1.1239 ◽

2019 ◽

Vol 1 (1) ◽

pp. 45-50

Author(s):

Hendra Gunawan ◽

Rica Tartila

Keyword(s):

Financial Performance ◽

Intellectual Capital ◽

Regression Models ◽

Manufacturing Industry ◽

Stock Exchange ◽

Value Added ◽

Structural Capital ◽

Financial Performance Measures ◽

The Impact ◽

Capital Value

Science and emerging technology in the manufacturing industry made the importance of implementing knowladge based industries, it has focused the importance of the using intellectual capital in this industry. This study aims to analyze the impact of intellectual capital on the financial performance. The empirical data were drawn from panel consisting of 51 companies manufacturing in Indonesia Stock Exchange (IDX) from 2010-2014. Various regression models were examined in order to test the hypothesis included in the proposed conceptual framework. The result showed value added intellectual capital (VAIC), value added human capital (VAHU), structural capital value added (STVA) have significant effect with four financial performance measures ROA, ROE, GR, EVA. Meanwhile, value added capital employed (VACA) have significant effect with two dependent variable ROA,ROE and no significant effect on GR, EVA. The results of the overall analysis regression only VACA which had no effect with GR and EVA.the lack of available data for the appropriate analysis be the main limitations of this study. The result of this study can explained the role and importance of intellectual capital to improve financial performance for companies and the result of this study study also can be used by shareholders and investors.

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