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

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

Şirketler İhtiyaç Fazlası Nakdi Karsız Yatırımlarda mı Kullanıyor? Borsa İstanbul Üzerine Bir Çalışma

In a perfect capital market, investments should not be related to cash flows of the firm. Investmentsshould only be determined by the amount of renewal investments required and growth opportunitiesavailable to the firm. Contrarily, due to the conflicts of interest between the managers and theshareholders, the theory on agency costs and free cash flow hypothesis propose that managers areinclined to over-use free cash flow, which is in excess of value-adding investments. It is claimed thatfirms invest their extra free cash flow on projects with returns below cost of capital of the firm. Someprior studies made on the topic implied the validity of this hypothesis. In other words, firm’s resourcesmight be wasted by means of over-investing. This study, based on a panel data of 154 Borsa Istanbulfirms observed between 2005-2015, confirmed that firms over-invest when there is free cash flowavailable in excess of growth opportunities and dividends. Prior studies have used mostly regressionmodels or Tobin’s q to estimate investment prospects of the firm. However, this study adopted a directmethod to estimate investment opportunities available to the firm.Etkin çalışan sermaye piyasalarında, şirketin yarattığı nakit ile yatırımları arasında ilişki olması beklenmez. Yatırım miktarı, ihtiyaç olan yenileme yatırımları ve şirketin önündeki yatırım fırsatları ile belirlenir. Ancak, vekiller ve hissedarlar arasındaki çekişmelerden dolayı, vekâlet teorisine göre vekiller şirketin içinde kalan kullanım fazlası nakdi, karlı olmayan projelere yatırarak ziyan etmeye meyil ederler. Şirketlerin ihtiyaç fazlası nakdi sermaye maliyetinin altında getiri sağlayan projelere yatırdıkları öne sürülmektedir. Literatürdeki bazı çalışmalar bu tezin doğruluğunu teyit etmiştir. Diğer bir deyişle, şirketler gereğinden fazla yatırım harcaması yaparak ihtiyaç fazlası nakdi ziyan edebilmektedirler. Bu çalışma, 154 Borsa Istanbul şirketinin 2005-2015 yılları arasındaki verilerini panel analizinde kullanarak, dağıtılan kar payı ve karlı yatırım fırsatlarının üzerinde yaratılan nakdin gereğinden fazla miktarda yatırım harcamasında kullanıldığını göstermiştir. Literatürdeki önceki çalışmalar şirketlerin yatırım fırsatlarını regresyon ve Tobin’s q oranını kullanarak hesaplamıştır. Bu çalışma farklı olarak karlı yatırım fırsatlarını direkt olarak tahmin etmeye çalışmıştır

The interaction between corporate social responsibility and value added intellectual capital: Empirical evidence from Turkey

Purpose - Corporate social responsibility (CSR) has become one of the mainstream issues for sustainable corporate performance in recent decades. Engagement in CSR activities has proven to have certain benefits for companies, ranging from better financial performance to shareholder wealth maximisation. Companies' value creation process has been dominated by companies' hidden assets and concurrently the concept of value added intellectual capital (VAIC). The purpose of this study is to provide evidence from an emerging market about the interaction between CSR and VAIC, and thus contribute to the understanding and awareness of the significance of socially responsible investments for companies. Design/methodology/approach - The empirical analyses, which take into account VAIC and its dimensions, are conducted on a sample of manufacturing companies listed on the Istanbul Stock Exchange (ISE) during the period 2007-2008. It is shown that some causality is related to the existence of a lag during the periods for the variables CSR and VAIC. Based on previous empirical studies, this study conducts the analyses based on the assumption that there may be a relationship between firm age, financial leverage, return on sales and market-to-book ratio and CSR. Findings - The results fail to provide any significant relationship between CSR and VAIC during the period analysed. These findings should not overshadow the benefits of CSR, but should be attributed to the time it takes for these investments to have an impact on firms' intellectual capital. Practical implications - A larger sample of firms covering a longer time span could be utilised. Generation of a CSR index in Turkey that eliminates the subjectivity of CSR measurement will undoubtedly improve the accuracy of the analyses. Originality/value - This paper increases the understanding of the relationship between corporate social responsibility and value-added intellectual capital. This research is also the first research to have examined Turkish companies for CSR and VAIC issues. Copyright © 2011 Emerald Group Publishing Limited. All rights reserved

The effect of covid-19 on the insurance sector of emerging market countries

The fear and uncertainty that arose during the COVID-19 pandemic caused an increase in volatility in financial and commodity markets. This study is conducted to show the impact of the number of COVID-19 cases on the insurance sector of developing countries. In the period between the first case dates and March 23, 2021, the relationship between the increase in the number of cases and the increase in the insurance sector index or company return is examined in the selected countries. According to the results, a negative relationship is revealed in all countries except Greece and Hungary, which is not significantCOVID-19 salgını sırasında ortaya çıkan korku ve belirsizlik, finans ve emtia piyasalarında oynaklığın artmasına neden olmuştur. Bu çalışma, COVID-19 vaka sayısının gelişmekte olan ülkelerin sigorta sektörü üzerindeki etkisini göstermek amacıyla gerçekleştirilmiştir. İlk vaka tarihleri ile 23 Mart 2021 arasındaki dönemde, seçili ülkelerdeki vaka sayısındaki artış ile sigorta sektörü endeksi veya şirket getirisi arasındaki ilişki incelenmiştir. Sonuçlara göre Yunanistan ve Macaristan dışındaki tüm ülkelerde negatif bir ilişki ortaya çıkmıştır

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

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

Hisse senedi getirisinin ‘MSCI standard’ ve ‘small cap’ endeks kapsam değişimine tepkisi: Türkiye örneği

The effect of index reconstitution on stock return and volume have been one of the controversial subjects in finance. Although, there are several researches, which are analyzing the domestic stock market index effect on stocks, a few studies focused on the effects of an international index. By the use of event study methodology, this paper analyzes the price effect of changes in constituents of two MSCI indexes (Standard Index and Small Cap Index) for Turkish companies as of announcement and effective dates. Overall, there are four analyses; namely, addition to Small Cap Index with respect to announcement (effective) day, deletion from Small Cap Index with respect to announcement (effective) day, addition to Standard Index with respect to announcement (effective) day, and deletion from Standard Index with respect to announcement (effective) day. The findings of the study present that index effect appears or disappears, resting upon the index, on which index reconstitution is being analyzed. Moreover, existence of the index effect is also subject to event day definition, which may be either announcement date or effective date of the index event. Significant index effect strongly exists for the additions to MSCI Standard Index around announcement date, while deletions have significant, but weaker, effect around the effective date. No significant index effect has been found for deletions around announcement date. Index effect is also documented around announcement and effective dates for MSCI Small Cap Index additions; however, such effect is quite stronger for deletions from MSCI Small Cap Index around the announcement dates.Endeks kapsam değişimlerinin hisse getirisi ve hacmi üzerindeki etkisi finans alanında tartışılan konulardan biri olmuştur. Birçok çalışma yurtiçi endeks değişimlerinin hisse senetleri üzerindeki etkisini analiz ederken, uluslararası endeks değişimlerinin etkisini inceleyen çalışmalar daha azdır. Bu çalışma, iki MSCI endeksindeki (Standard Index and Small Cap Index) Türk firmalarının endeksten çıkarılması ve endekse eklenmesi ile ilgili değişimlerin hisse fiyatını nasıl etkileyeceğini vaka analizi yöntemi kullanarak incelemektedir. Değişimlerin hem ilan edildiği hem de gerçekleştiği tarih dikkate alınarak dört analiz yapılmıştır. Bu analizler ilan ve gerçekleşme günlerini dikkate alarak Small Cap endeksine eklenmeyi ve endeksinden çıkarılmayı, ayrıca Standard endekse eklenmeyi ve endeksten çıkarılmayı içermektedir. Çalışmanın bulguları, değişimin analiz edildiği endekse bağlı olarak endeks etkisinin ortaya çıkabildiğini ya da ortadan yok olabildiğini göstermiştir. Buna ek olarak, endeks etkisinin varlığının ilan günü veya yürürlük günü gibi olay günü tanımlarından etkilendiği gözlemlenmiştir. İlan günü civarında MSCI Standart Endeksine yapılan eklemeler için anlamlı ve güçlü bir endeks etkisi bulunurken, endeksten çıkarmalarınyürürlük günü civarında anlamlı ancak daha zayıf bir etkisi vardır. İlan günü civarındaki çıkarmalar için ise anlamlı bir endeks etkisi bulunmamıştır. MSCI Small Cap endeks eklemelerinin ilan ve yürürlük günleri civarında da endeks etkisi bulunmuştur; ancak bu etki, ilan günü civarında endeks kapsamından çıkarmalarda oldukça güçlüdü