scholarly journals Intellectual Capital and Firm Performance in the Context of Venture-Capital Syndication Background in China

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-17
Author(s):  
Yuzhong Lu ◽  
Zengrui Tian ◽  
Guillermo Andres Buitrago ◽  
Shuiwen Gao ◽  
Yuanjun Zhao ◽  
...  
Keyword(s):  
Firm Performance ◽  
Venture Capital ◽  
Intellectual Capital ◽  
Generalized Method Of Moments ◽  
Theoretical Development ◽  
Relational Capital ◽  
Return On Equity ◽  
Listed Firms ◽  
The Impact ◽  
Innovation Capital

This paper is intended to investigate the role of Venture-Capital Syndication (VCS) background in the relationship between intellectual capital (IC) and portfolio firm performance (PFP); specifically, this article examines the moderating effect of VCS’s leading firm background and member heterogeneity on the effect of IC on PFP. This study used a modified VAIC model to measure IC to compose a 4-component variable including human capital, structural capital, relational capital, and innovation capital. The data were collected from VCS-backed and listed firms in China during 2014 to 2018 applying the pooled OLS model for hypotheses test, Generalized Method of Moments (GMMs) to reduce endogeneity and unobserved factor control, and also return on equity (ROE) instead of ROA for the robustness test. Empirical results showed that IC and its components can improve PFP for VCS-backed firms in China; in detail, IC showed greater impact on performance of firms invested by foreign lead investors than in private or government VCS, specially reflected in the impact of innovation capital on PFP. Furthermore, IC showed weaker impact on PFP of mixed VCS-backed firms compared to pure VCS-backed firms and showed diminished effect on higher VCS member heterogeneity mainly reflected in the impact of relational capital on firm performance. These findings propose a new way of combining IC and VC to improve firm performance and are beneficial to theoretical development of IC and VC as well as a perspective for VC firm managers to choose suitable partners prior to join a VCS.

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

2018 ◽  
Vol 19 (5) ◽  
pp. 935-964 ◽  
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.

scholarly journals Green Intellectual Capital and Firm Competitive Advantage: Evidence from Malaysian Manufacturing Firms

2019 ◽  
pp. 463-471
Author(s):  
Naimah Ahmad Yahya ◽  
Roshayani Arshad ◽  
Amrizah Kamaluddin ◽  
Rahayu Abdul Rahman
Keyword(s):  
Competitive Advantage ◽  
Intellectual Capital ◽  
Manufacturing Firms ◽  
Relational Capital ◽  
Organizational Capital ◽  
Green Innovation ◽  
Four Dimensions ◽  
The Impact ◽  
The Relationship ◽  
Innovation Capital

The purpose of this study is to investigate the relationship between green intellectual capital and firms’ competitive advantage in Malaysia. More specifically this study examines the impact of four dimensions of green intellectual capital; green human capital, green innovation capital, green organisational capital and green relational capital on firms’ competitive advantage. Using survey as a method to collect data from 224 managers of manufacturing firms in Malaysia, the result shows that green intellectual capital and its dimensions, specifically the green innovation capital, green organizational capital and green relational capital have significant and positive relationship with firms’ competitive advantage. Overall, the findings highlight the importance of green intellectual capital as a valuable business resource which in turn enhances firm performance and competitiveness.

Impacts of social insurance on firm performance: evidence from Vietnamese small- and medium-sized enterprises

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
The Nguyen Huynh
Keyword(s):  
Firm Performance ◽  
Labor Productivity ◽  
Social Insurance ◽  
Generalized Method Of Moments ◽  
Three Dimensions ◽  
Content Type ◽  
Return On Equity ◽  
Social Insurance Contribution ◽  
Insurance Costs ◽  
The Impact

PurposeThis article analyzes the impact of social insurance on firm performance by obtaining evidence from Vietnamese small- and medium-sized enterprises.Design/methodology/approachThe method employed in the research is the generalized method of moments for testing hypotheses of data collected from the General Statistics Office of Vietnam.FindingsThe results show that social insurance contributions can enhance firm performance in three dimensions: return on equity (ROE), labor productivity and total factor productivity (TFP). In addition, financial leverage, firm size, the average wage of workers and fixed assets have an impact on the social insurance costs of these companies.Originality/valueThis article provides a novel explanation of the contribution of social insurance to firm performance. In particular, social insurance contribution not only increases labor productivity but also boosts the growth of the TFP of companies. In addition, the article points out that taking care of the benefits of employees is a valuable investment of companies. These are the unique contributions of the paper to the literature on the economic impact of social insurance.

Dynamic study of corporate governance structure and firm performance in China

2019 ◽  
Vol 13 (2) ◽  
pp. 299-317 ◽  
Author(s):  
Lin Shao
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Generalized Method Of Moments ◽  
Supervisory Board ◽  
Governance Structure ◽  
State Ownership ◽  
Content Type ◽  
Listed Firms ◽  
The Impact ◽  
The Relationship

Purpose The paper aims to provide a comprehensive investigation of the relationship between corporate governance (CG) structure and firm performance in Chinese listed firms from 2001 to 2015. The authors’ motivation derives from the fact that the CG system in China is different from those in the US, the UK, Germany, Japan and other countries. Design/methodology/approach A large unbalanced sample, covering more than 22,700 observations in Chinese listed firms, was used to explore, by means of a system-generalized method-of-moments (GMM) estimator, the relationship between CG structure and firm performance to remove potential sources of endogeneity. Findings Results show that Chinese CG structure is endogenously determined by the CG mechanisms investigated: there is no relationship between board size (including independent directors) and firm performance; CEO duality has a significantly negative effect on firm performance; concentration of ownership has a significantly positive influence on firm performance; managerial ownership is negatively correlated with firm performance; state ownership has a significantly positive effect on firm performance; and a supervisory board is positively correlated with firm performance. Practical implications The findings provide policymakers and firm managers with useful empirical guidance concerning CG in China. Originality/value Few integrative studies have examined the impact of CG structure on firm performance in China. This study adds new empirical evidence that the relation between CG structure and performance in China is endogenous and dynamic when controlling for unobserved heterogeneity, simultaneity, and dynamic endogeneity.

scholarly journals Corporate Governance, Intellectual Capital and Firm Performance

2016 ◽  
Vol 8 (1) ◽  
pp. 17 ◽  
Author(s):  
Abdul Basyith
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Developed Countries ◽  
Panel Method ◽  
Current Evidence ◽  
Listed Firms ◽  
Good Corporate Governance ◽  
The Impact

<p>This paper investigates the impact of corporate governance and intellectual capital on firm<br />performance in Indonesian-listed firms. Using a balanced-panel of 120 Indonesian-listed<br />firms, this study employs a balanced panel method, using non linier IV 2SLS and non linier<br />IV-GMM. All variables, apart from commissioners, directors, education and capital<br />employed efficiency exhibit a non significant impact on Tobins’Q, while all variables are<br />statistically non significant for ROA. The findings are less conclusive than that of previous<br />studies in developed countries. This study provides recent evidence for the corporate<br />governance and intellectual capital in affecting firm peformance of listed-firms in Indonesian<br />Stock Exchange. Though most listed-firms in Indonesia is owned by group or family, the<br />appointment should be strictly complied to the regulations set, as current evidence indicates<br />that independent commissioners and directors have no impact on firm performance, hence an<br />awareness of good corporate governance conduct should be massively disseminated.</p>

scholarly journals Collective personality of top listed firms in Australia and its impact on financial and market performance

2020 ◽  
Vol 18 (1, Special Issue) ◽  
pp. 438-449
Author(s):  
Anil Chandrakumara ◽  
Rohan Wickramasuriya ◽  
Grace McCarthy
Keyword(s):  
Firm Performance ◽  
Annual Report ◽  
Annual Reports ◽  
Learning Approach ◽  
Return On Equity ◽  
Listed Firms ◽  
Machine Learning Approach ◽  
Governance Practices ◽  
Research Problems ◽  
The Impact

This paper examines three research problems. First, what collective personality traits are reflected in CEOs’ statements in firms’ annual reports? Second, is there any impact of collective personality on financial (ROE – return on equity) and market (TQ – Tobin’s Q) performance? Third, whether attributes of CEOs or collective personality makes a greater impact on firm performance? Using the machine learning approach employed by IBM’s Personality Insights service, we performed a content analysis of 804 CEO’s annual report statements in 402 firms to estimate collective personality scores and adopted hierarchical multiple regression analysis to examine the intended relationships. The study found that collective conscientiousness and agreeableness impact positively on ROE and TQ and collective openness and neuroticism impact negatively on either or both ROE and TQ. Further, the collective personality tends to show a greater impact on ROE and firm size by assets than the impact of CEOs attributes. Besides exploring a relatively less-researched concept, the study highlights the practical value of developing intellectual and human capital through governance practices and leadership towards enhancing firm performance.

scholarly journals The relationship between intellectual capital and firm performance

2017 ◽  
Vol 1 (1) ◽  
pp. 32-41 ◽  
Author(s):  
Amina Mohamed Buallay
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
High Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Random Effect ◽  
Listed Firms ◽  
Effect Regression ◽  
The Impact ◽  
The Relationship

This study aimed to measure the impact of intellectual capital on firm performance of listed firms in Saudi stock exchange. The study methodology was a pooled data collected from the Saudi stock exchange (TADAUWL) for the period from 2012 to 2014. The study sample is 489 observations from 171 listed firms. The study independent variable is Intellectual Capital components (HCE, SCE and CEE). The dependent variable is firm performance which measured using ROA, ROE and Tobin’s Q. The study also utilized five control variables in order to help measure the relationship between Intellectual Capital and Firm Performance. In conclusion, the study found that the Intellectual Capital level tends to be higher with firms that have high performance. However, there is variation in the level across the sectors. Random effect regression model was incorporated; the results revealed that there is no significant impact of Intellectual Capital on firm’s operational performance (ROA). However, there is the significant positive impact of Human capital on financial performance (ROE). Additionally, the study concluded that there is the negative significant impact on structural capital efficiency and positive significant impact on Capital Employed Efficiency on firms’ market performance (TQ). These results are expected to broaden the understanding of IC and its impact on firms’ performance in GCC economies in general and specifically in Saudi economic. Moreover, it will be useful for GCC firms to place their priorities and financial plans for effective and efficient use of Intellectual Capital.

scholarly journals Female representation on the boards of directors of non-financial companies

2021 ◽  
Vol 10 (2) ◽  
pp. 44-54
Author(s):  
Zyad Marashdeh ◽  
Mohammad W. Alomari ◽  
Mohammad Khataybeh ◽  
Ahmad Alkhataybeh
Keyword(s):  
Firm Performance ◽  
Boards Of Directors ◽  
Financial Institution ◽  
Generalized Method Of Moments ◽  
Female Representation ◽  
Return On Assets ◽  
Return On Equity ◽  
Negative Effect ◽  
Lagged Dependent Variable ◽  
The Impact

This study offers new insights to help improve our understanding of the impact of female representation on firm performance, as measured by return on assets (ROA) and return on equity (ROE) and using non-financial institution data from Jordan. The study utilizes a lagged dependent variable in the regression models by employing the generalized method of moments (GMM) for dynamic panel analysis of the panel data of 77 companies over the period 2008-2018. The results of the regression analysis reveal that leverage, board size, and firm size were positive and statistically significant, while the age of the firm was statistically significant but had a negative effect, which indicates the existence of a relationship between these variables and the performance of Jordanian companies. However, the results fail to show any effect of the impact of female representation on firm performance as measured by return on assets and return on equity. This finding might be attributed to the low representation of females on non financial institution boards, which was only 3.63%, a very low figure compared to that of males on Jordanian boards. Therefore, our results are valid only for Jordanian firms and cannot be generalized to ones in other countries, which might have different cultural and legal perspectives.

Does Bank Profitability Stimulate Economic Growth in the Arab Region?

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Omar Ghazy Aziz
Keyword(s):  
Financial Development ◽  
Method Of Moments ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Arab Countries ◽  
Return On Assets ◽  
Bank Profitability ◽  
Arab Region ◽  
Return On Equity ◽  
The Impact

AbstractThis study empirically investigates the impact of bank profitability, as a complementary measure of financial development, on growth in the Arab countries between 1985 and 2016. Using a generalized method of moments (GMM) estimation to test the impact of the bank profitability on growth, this study utilises two variables in the econometric model which are return on assets and return on equity. This study reveals that both variables of bank profitability are positive and significant. This confirms that the bank profitability, beside other financial development variables, has positive impact on the growth. This study points out some important implications based on this result.

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