scholarly journals IMPACT OF INTELLECTUAL CAPITAL ON CORPORATE FINANCIAL PERFORMANCE: AN EMPIRICAL EVIDENCE FROM PHARMACEUTICAL SECTOR OF PAKISTAN

2015 ◽  
Vol 54 (2) ◽  
pp. 91-109
Author(s):  
Amber Qadar ◽  
Muhammad Abdul Majid Makki ◽  
Muhammad Athar Hussain
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Value Added ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Corporate Financial Performance ◽  
Pharmaceutical Sector ◽  
Pharmaceutical Industries ◽  
The Impact

The basic purpose of this study is to analyze the impact of intellectual capital on corporate financial performance. This study is conducted on pharmaceutical sector listed in Pakistan Stock Exchange. Data for this study was collected from audited annual financial statements of selected business organizations over period of ten year i.e. from 2005-2014. Value Added Intellectual Coefficient (VAIC) methodology is employed, in order to measure IC (Intellectual Capital) and its different components. The firm’s financial performance is measured by using profitability measures including ROE (Return on Equity) and ROA (Return on Assets), market to book value and asset turnover. In order to analyze the collected data, the Partial Least Square (PLS), a SEM (structural equation modeling) technique. These approaches are used to assess the measurement and structural models. The results of analysis have supported the proposed hypothesis i.e. there is significant positive impact of intellectual capital on firm’s financial performance among pharmaceutical industries of Pakistan.

scholarly journals PengaruhIntellectual Capital Terhadap Kinerja Keuangan Perusahaan Publik (Non Keuangan) di Indonesia

2012 ◽  
Vol 2 (1) ◽  
pp. 181
Author(s):  
Luluk Muhimatul Ifada ◽  
Hairida Hapsari
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Value Added ◽  
Partial Least Square ◽  
Least Square ◽  
Corporate Financial Performance ◽  
Average Growth ◽  
Business World ◽  
The Future ◽  
Positive Effect

uBusinesses began to realize that the ability to compete not only in the ownership of industrial machines, but more on innovation, information systems, organizational management and human resource knowledge he had. An attempt will be able to compete when using competitive advantage gained through creative innovations produced by the intellectual capital of the company. Therefore, the Intellectual Capital (IC) has become a very valuable asset in the modern business world because it is necessary to create value added for the company. This study aims to determine the effect of IC on corporate financial performance. IC is an independent variable and the company’s financial performance as the dependent variable. Data used in this study is 215 public companies (non financial) in Indonesia from 2005 until 2008 which are listed on the Indonesia Stock Exchange (BEI). This research uses Pulic model (Value Added Intellectual Coefficient ™ - VAIC ™) as a measure of IC components that proxies with physical capital (vaca), human capital (VAHU), and structural capital (STVA). Partial Least Square (PLS) is used as a tool to test the effect of IC (VAIC ™) to the company’s financial performance, which the company’s financial performance proxies with the ROE, EPS and MBV. The results of this study indicate that: IC (VAIC ™) positive effect on company financial performance; IC (VAIC ™) positive effect on company financial performance in the future, the average growth of IC (ROGIC) no positive effect on corporate financial performance in the future front, and the contribution of IC (VAIC ™) against the company’s financial performance in the future will differ according to type of industry. Keywords: Intellectual Capital, (VAIC ™), the company’s financial performance, Partial Least Square (PLS).

scholarly journals INTELLECTUAL CAPITAL, KINERJA KEUANGAN, DAN NILAI PERUSAHAAN YANG TERDAFTAR DI JAKARTA ISLAMIC INDEX: PENDEKATAN SEM-PLS

2020 ◽  
Vol 7 (8) ◽  
pp. 1468
Author(s):  
Ira Ragelia ◽  
Puji Sucia Sukmaningrum
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Firm Value ◽  
Structural Equation ◽  
Value Added ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Performance Variables ◽  
Structural Capital

This study aims to analyze the effect of intellectual capital on firm value through financial performance as a intervening variable on companies that are consistently listed on the Jakarta Islamic Index from 2014 to 2018. Based on purposive sampling techniques, there are 15 companies used as research samples. This research tested used the Structural Equation Modeling method with Partial Least Square (SEM-PLS). The measurement of intellectual capital in this study uses the VAICTM method, which consists of Value Added Capital Employed (VACA), Value Added Human Capital (VAHU), and Structural Capital Value Added (STVA). It was found that intellectual capital influence on firm's value directly and indirectly. Financial performance as a partial intermediary reflected through Return on Assets (ROA), Current Ratio (CR), Debt to Total Assets Ratio (DAR), Total Assets Turnover (TATO), and Earnings per Share (EPS). However, only ROA and TATO indicators can reflect financial performance variables. In the intellectual capital variable, there is only one valid indicator, namely physical and financial capital (VACA). The company's value in this study reflected through Market to Book Value and Tobin's Q.Keywords: intellectual capital, financial performance, firm’s value, SEM-PLS, Jakarta Islamic Index

scholarly journals Does environmental performance leverage the impact of environmental strategy on financial performance? A focus on third-party logistic providers

2022 ◽  
Vol 10 (1) ◽  
pp. 29-36 ◽  
Author(s):  
Quang-Huy Ngo
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Mediating Effect ◽  
Third Party ◽  
Equation Modeling ◽  
Environmental Strategy ◽  
The Impact

Although prior studies draw upon natural resource-based views, environmental strategy permits competitive advantages, and as such, gains financial performance. However, empirical results are mixed. To shed light on this issue, this study proposes that environmental performance mediates the link between environmental strategy and financial performance. Data were collected from 175 third-party logistic providers currently operating in Vietnam to test the hypotheses. Partial least square structural equation modeling was borrowed to test the data. The results reveal environmental performance partially mediates the link between environmental strategy and financial performance. By considering the mediating effect, this study contributes to the literature by addressing the intervening mechanism of environmental performance on the inconclusive relationship between environmental strategy and financial performance. Besides, this study also extends prior studies by borrowing a concept of environmental strategy, which captures the extent of organizations pursuing this strategy, to explain how and why pursuing this strategy permits environmental and financial performance.

An Assessment of Risk Management Practices of SME Taxpayers in Malawi and their Impact on Tax Compliance

2018 ◽  
Vol 4 (4) ◽  
pp. 7-17 ◽  
Author(s):  
Stella Binauli Nanthuru ◽  
Liu Pingfeng ◽  
Nie Guihua ◽  
Victoria Lucas Mkonya
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Structural Equation ◽  
Management Practices ◽  
Risk Mitigation ◽  
Tax Compliance ◽  
Value Added ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling

This study assesses understanding of Risk, and extent of risk management practices in Small and Medium Enterprise (SME) taxpayers in Malawi, subsequently, investigates their relationship with financial performance and tax compliance. The study focuses on unlimited business sectors of SME taxpayers which drew a representation of our sample of 324 SMEs, using Partial Least Square-Structural Equation Modeling (PLS-SEM) to analyze and test hypotheses. Results indicate that half of the SME taxpayers are aware of risks, but only 23% of respondents underwent any training on risk management. 90% of respondents revealed that tax rates are the most significant business constraint; value-added tax (VAT) being the most challenging tax to file. Most respondents identified risks through experience, with risk management practices centering on Chief Executive Officers. Empirical evidence on Path analysis and bootstrapping results established a significant relationship between understanding risks, risk management practices, financial performance and Tax compliance, which is positive, signaling a roadmap for risk mitigation if tax administration is to widen its SME tax net.

scholarly journals The effect of intellectual capital on financial performance and market value of manufacturing companies listed in the Indonesia Stock Exchange 2010 - 2012

2015 ◽  
Vol 5 (1) ◽  
pp. 45
Author(s):  
Lusia Amaluddin Andriani ◽  
Erida Herlina
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Sampling Method ◽  
Stock Exchange ◽  
Value Added ◽  
Market Value ◽  
Partial Least Square ◽  
Least Square ◽  
Manufacturing Companies ◽  
Purposive Sampling

The purpose of this study is to examine the effect of intellectual capital on financial performance and market value of the manufacturing companies. The sample consists of manufacturing companies, which are consistently registered, in the Indonesia Stock Exchange during the period of 2010-2012. Intellectual capital was calculated using value added intellectual coefficient (VAICTM). The main components of VAICTM are physical capital (VACA), human capital (VAHU) and structural capital (STVA). Financial performance is measured using Return on Asset (ROA), Return on Equity (ROE) and Earning per Shares (EPS). Market value is measured using Price Book to Value (PBV) and Price Earnings Ratio (PER). The sampling in this study is using purposive sampling method. Based on the purposive sampling method, it was obtained 71 manufacturing companies listed in the Indonesia Stock Exchange during the period of 2010-2012. The data analysis was done by using Partial Least Square (PLS). The results show that: (1) intellectual capital has an effect on the financial performance, (2) intellectual capital has no effect on the market value, (3) financial performance is able to mediate the relationship between intellectual capital and market value.

scholarly journals The influence of intellectual capital on company value with financial performance as an intervening variable in financing institutions in Indonesia

2017 ◽  
Vol 6 (2) ◽  
pp. 159
Author(s):  
Susi Nafiroh ◽  
Joicenda Nahumury
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Firm Value ◽  
Stock Exchange ◽  
Value Added ◽  
Partial Least Square ◽  
Least Square ◽  
Return On Equity ◽  
Company Value ◽  
Institu Tions

The objective of this study is to examine the influence of intellectual capital on compa-ny value with financial performance as an intervening variable in financing institu-tions listed on the Indonesian Stock Exchange (IDX) 2010 - 2014. This research uses Value Added Intellectual Coefficient (VAICTM) model that consists of three compo-nents: Value Added Capital Employed (VACA), Value Added Human Capital (VA-HU), and Value Added Structural Capital (STVA). Company value is measured using Tobin’s Q, financial performance is measured using Return on Asset (ROA), Return on Equity (ROE), and Earning per Share (EPS). The data consisted of 67 samples. Sampling is conducted using census method. Data analysis technique used in this study is Partial Least Square (PLS). The results show that: (1) intellectual capital has an influence on company value (2) financial performance mediates the relationship between intellectual capital and company value. The important thing in this study is that intellectual capital can be used for adding the firm value.

scholarly journals Intellectual Capital, Technological Intensity and Firm Performance: The Case of Emerging Countries

2021 ◽  
Vol 68 (4) ◽  
pp. 459-479
Author(s):  
Mehtap Öner ◽  
Asli Aybars ◽  
Murat Çinko ◽  
Emin Avci
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Emerging Market ◽  
Value Added ◽  
Emerging Countries ◽  
Corporate Financial Performance ◽  
Positive Contribution ◽  
Capital Efficiency ◽  
Technological Intensity ◽  
The Impact

While neglecting the importance of technological intensity, most of the prior studies documented the positive contribution of intellectual capital (IC) to corporate financial performance. This study aims at analyzing the relation between IC and corporate financial performance addressing the technological intensity in different sectors from 17 emerging countries. The impact of IC, which is measured by Value Added Intellectual Coefficient (VAIC) and its components; Capital Employed Efficiency (CEE), Human Capital Efficiency (HCE), and Structural Capital Efficiency (SCE), on corporate financial performance will be evaluated using panel data analysis for the period between 2009-2019. Accordingly, IC and its components are found to be significant drivers of financial performance being higher for sectors that are more technology intensive. Moreover, human and physical capital are the main components, which boost finance performance for all groups irrespective of technological intensity in the emerging market context.

scholarly journals INTELLECTUAL CAPITAL AND FINANCIAL PERFORMANCE: BANKS’ RISK AS THE MEDIATING VARIABLE

2020 ◽  
Vol 22 (1) ◽  
pp. 21-32
Author(s):  
Anastasia Dian Cahyaningrum ◽  
Apriani Dorkas Rambu Atahau
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Liquidity Risk ◽  
Sampling Technique ◽  
Financial Statements ◽  
Research Data ◽  
Partial Least Square ◽  
Least Square ◽  
The Impact ◽  
The Relationship

This study seeks to investigate the impact of intellectual capital on banks’ financial performance with banks’ risks as the intervening variable. By using the purposive sampling technique, we selected 30 sample firms from publicly listed Indonesian banks in 2015–2017. This study generated the research data from banks’ financial statements in those years. We then analyzed our data by using the Partial Least Square. The results demonstrate that banks’ risks do not mediate the relationship between intellectual capital and banks’ financial performance. Meanwhile, intellectual capital negatively affects operational risk and market risk. In addition, credit risk negatively affects banks’ financial performance, and liquidity risk negatively affects banks’ financial performance. Lastly, intellectual capital does not affect banks’ financial per­form­ance.

scholarly journals Analysis of Intellectual Capital Effect Toward Financial Performance and Growth

2015 ◽  
Vol 6 (3) ◽  
pp. 449
Author(s):  
Sasya Sabrina
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Value Added ◽  
Partial Least Square ◽  
Least Square ◽  
Manufacturing Companies ◽  
Return On Equity ◽  
Structural Capital ◽  
Capital Value

The purpose of this research is to investigate the influence of intellectual capital of firm toward financial performance and growth. The Value Added Intellectual Coefficient (VAICTM) is used to measure intellectual capital. The indicators for VAICTM are Value Added Capital Employed (VACA), Value Added Human Capital (VAHU), and Structural Capital Value Added (STVA). The indicators for financial performance are Current Ratio (CR), Total Assets Turnover (TATO), Return on Investment (ROI), and Return on Equity (ROE). The indicators for growth are Earnings Growth (EG) and Assets Growth (AG). This research uses data drawn from 92 publicly listed manufacturing companies in Indonesian Stock Exchange in 2010, 2011, and 2012. Partial Least Square (PLS) is used as the method of data analysis. This research uses SmartPLS 3.2.0 to analyze the data.The results show that: intellectual capital doesn’t influence financial performance and intellectual capital positively influences growth.

scholarly journals The Determinants of Firm Value and Financial Performance in Islamic Stocks

2021 ◽  
Vol 9 (1) ◽  
pp. 1
Author(s):  
Salma Khoirunnisaa Arribaat
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Firm Value ◽  
Capital Good ◽  
Substantial Effect ◽  
Partial Least Square ◽  
Least Square ◽  
Equity Ratio ◽  
The Impact

<em>One of the company's long-term goals is to maximize the firm value. It is the present value of the company, which can be a prospect in the future. Therefore, the problem in this study is the factors that affect the company's value in the Jakarta Islamic Index for 2015-2019. This study analyzes the influence of Intellectual Capital, Good Corporate Governance, and Debt to Equity Ratio on Firm Value directly and indirectly through Financial Performance. The data used in this study is panel data using purposive sampling, and there are 17 stocks listed on the Jakarta Islamic Index for 2015-2019 period. The analysis technique of this research is Partial Least Square. The test results of the direct effect show that Intellectual Capital, Debt to Equity Ratio, and Financial Performance have a significant impact on Firm Value on the Jakarta Islamic Index. Corporate governance has a substantial effect on Financial Performance. Meanwhile, indirect testing proves that the Financial Performance variable can only mediate the impact of Corporate Governance on Firm Value. However, it cannot mediate between the relationship between the variable intellectual capital and debt ratio to equity.</em>

Sign in / Sign up

Export Citation Format

Share Document