An investigation of intellectual capital impact on companies' market value and financial performace

The main objective of the present study is to measure intellectual capital and investigate its effect on market value and performance measures of 60 Iranian firms listed in Tehran Stock Exchange from three different industries including pharmaceutical products, chemical products and automobile and parts manufacturing industries during the period of 2009-2012. The obtained results indicated that, in pharmaceutical products and automobile and parts manufacturing industry, market value is significantly and positively affected by IC and its components, except for structural capital efficiency and, moreover, in chemical products industry, IC has not any significant relationship with market value, but, some of its components including human capital efficiency and capital employed efficiency have significantly positive relationship with market value indicator. Regarding IC effect on performance measures, it is worth noting that two performance measures of return on asset (ROA) and return on equity (ROE) are significantly associated to IC and some of its components in all three types of industry especially pharmaceutical products and automobile and parts manufacturing industries. Revenue growth (GR), as another performance measure, is significantly affected by IC and its components only in automobile and parts manufacturing industry. Accordingly, it can be concluded that these observed relationships are moderately affected by industry rype. Keywords: intellectual capital, market value, financial performance, Tehran Stock Exchange

Analysis of Intellectual Capital Effect Toward Financial Performance and Growth

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\u27t influence financial performance and intellectual capital positively influences growth

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

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

Factors Predicting Financial Sustainability in the Banking Sector

The banking sectors are striving to operate their businesses during the Covid-19 pandemic. This requires innovation to enable the provision of services to the community and improve financial performance. Therefore, this research aimed to analyze the effect of intellectual capital on financial sustainability mediated by financial performance. The purposive sampling technique was employed, with 31 national private banks listed on the IDX as samples and PLS-SEM to solve the research hypothesis. The result demonstrated that the financial performance variable mediates the effect of intellectual capital on financial sustainability. The implication is that the banking sector should pay attention to its intellectual capital, which will improve its financial performance and promote the sustainability of the business.How to Cite:Veronica, M. S., Ida, I. & Peteriandi, D. (2022). Factors Predicting Financial Sustainability in the Banking Sector. Signifikan: Jurnal Ilmu Ekonomi, 11(2), 355-370. https://doi.org/10.15408/sjie.v11i1.25813.JEL Classification: F65, H72, O43, Q0

A study on the relationship between human development and intellectual and human capital in banking industry

In the current era, the main challenge of managers is to provide an environment suitable for development of human minds in the science-based organizations. Therefore, their ability in knowledge management and intellectual capital management has become a substantial skill of managers in these organizations. The purpose of this paper is to consider the relationship between human development index and intellectual and human capital. In the paper, pulic Model 2000 has been used to measure intellectual capital. Also, in order to collect data, information of 7 banks, which have been accepted in Tehran stock market during 2007-2011 (35 firm years), has been analyzed by using statistical method of data panel in STATA and EVIEWS softwares. The results of the study show that there is no significant relationship between human development and intellectual capital. Moreover, the results indicate that the relationship between human development and human capital is not significant

A study on the relationship between human development and intellectual and human capital in banking industry

In the current era, the main challenge of managers is to provide an environment suitable for development of human minds in the science-based organizations. Therefore, their ability in knowledge management and intellectual capital management has become a substantial skill of managers in these organizations. The purpose of this paper is to consider the relationship between human development index and intellectual and human capital. In the paper, pulic Model 2000 has been used to measure intellectual capital. Also, in order to collect data, information of 7 banks, which have been accepted in Tehran stock market during 2007-2011 (35 firm years), has been analyzed by using statistical method of data panel in STATA and EVIEWS softwares. The results of the study show that there is no significant relationship between human development and intellectual capital. Moreover, the results indicate that the relationship between human development and human capital is not significant

INTELLECTUAL CAPITAL EFFICIENCY AS THE DETERMINING FACTOR OF SUSTAINING PROFITABILITY IN THE COVID-19 PANDEMIC CONDITIONS: DOES THE AGE OF THE ENTERPRISE MATTER IN HOTEL INDUSTRY?

The purpose of this paper is to provide the answer to the question - Can the efficiency of intellectual capital (ICE) be a factor in maintaining the profitability of young and mature hotel enterprises in the crisis caused by the Covid-19 pandemic? The key goal of the paper is to point out the importance of intangible (intellectual) resources for improving business performance, and above all, profitability. To respond to the goals of the research, an analysis of the contribution of human capital efficiency (HCE) and structural capital efficiency (SCE) to the profitability of young and mature hotels in the year before the crisis and the year of crisis in the Republic of Serbia (RS), as an emerging country will be given. The study's findings suggest that the ICE components have a partial impact on the profitability of young hotels in the year before the crisis. In the year of crisis, the ICE components partially affect the realization of sustainable and profitable business among mature hotels

Intellectual Capital, Information Asymmetry and Cost of Equity Capital of Listed Consumer Goods in Nigerian Exchange Group

The objective of this study is to investigate statistically the influence of intellectual capital disclosure (IC) on cost of Equity capital. The study focused on listed consumer goods companies in Nigerian Exchange Group. The ex-post facto research approach was employed, using panel data sourced from published yearly financial reports of selected firms. The study covered 10 years from 2011 to 2020. Descriptive and inferential statistical tools were used in analyzing the data. The findings confirmed our hypotheses that specify the presence of a substantial and negative relationship between intellectual capital reporting with its four mechanisms (Physical capital, human capital, structural   capital and Relational) and the cost of equity). The study found that intellectual capital reporting had significant effect on cost of equity capital of listed consumer goods in Nigerian Exchange Group (AdjR2 = 0.3733; F-Stat. = 1.122; p = 0.034). Nonetheless, the results also showed that the controlling effects of information Asymmetry has a positive and insignificant influence on the Cost of common stock capital of consumer goods firm in Nigeria. The outcomes of this study are of great significance to rule formulators and organizations. Precisely, the knowledge of the influence of Intellectual capital reporting on cost of common stock of capital benefits policy formulators in the assessment of the costs and gains of disclosure. Furthermore, in relation to executives of companies, the findings revealed the advantage of improved IC reporting concerning the lessening in their cost of capital. This paper provides pragmatic confirmation of the relationship between Cost of equity capital and the extent of reporting in the four separate intellectual capital classifications (Physical, human; relational and structural capital). Keywords: intellectual capital; Human Capital VAIC model; Consumer Goods, Cost of Equity Capital DOI: 10.7176/PPAR/13-2-05 Publication date:March 31st 202