Intellectual capital (IC) has gained recognition in enhancing the firms’ value and gain competitive advantage in the developed world. Thus, it is imperative for all stakeholders to have an understanding of its impact on firms’ profitability. The present study aims to analyse the impact of intellectual capital on firms’ profitability of Indian pharmaceutical companies listed in National Stock Exchange (NSE-500) for the time period of 10 years (i.e. 2009–2018). The paper has used modified version of Pulic’s Value Added Intellectual Coefficient, i.e., M-VAIC as a proxy to measure intellectual capital and firms’ profitability as represented by ROA, ROE and EBITDA. In line to analyse the effectiveness, a balanced panel data regression technique has been used. The results of the paper indicate a significant relationship between intellectual capital and firms’ profitability. Also, it is found that human capital, relational capital and physical capital have a significant role in increasing the profitability of the firm. The analysis would help the administration and management of pharmaceutical companies in the composition and organization of intellectual capital, stakeholders in the decisions related to investment and financial specialist for enhancing intellectual capital efficiency and value creation for the firm. Human capital is found to be having a positively significant impact on firms’ profitability; their inclusion and management are suggested for the companies.
Intellectual capital (IC) has gained recognition in enhancing the firms' value and gain a competitive advantage in the developed world. The present study examines the impact of IC on firms' financial performance. The study takes 48 companies for the time period of 10 years (2009-2018). The paper has used modified Pulic's value added intellectual coefficient (VAIC) as a proxy to measure IC and return on assets (ROA) to measure firms' financial performance. Granger causality between all the components of IC and ROA has been tested using Dumitrescu-Hurlin test. To analyse the impact, correlation and dynamic panel data regression technique has been applied. The result indicates that overall intellectual capital, human capital, relational capital, process capital, and financial capital have a significant impact on financial performance. On the other hand, innovation capital has no significant relationship with firms' financial performance. The results are helpful for managers, policymakers, government, and investors so that they can properly manage and regulate the IC of their organization.
The outbreak of the novel COVID-19 pandemic emerged as a major black swan event which has caused shock waves and severely hurt the sentiments of market participants. The pandemic has raised uncertainties and risks all over the world, impacting substantially the world's 20 largest economies. While the stock markets' intense reaction to the official news of the pandemic is well known, the reaction of largest world economies during the initial phases of the outbreak until 11th March 2020 is not very well established. Therefore, the present study investigates how stock markets in world's 20 largest economies have reacted to major events and press releases associated with disease from the beginning of the pandemic (i.e., 31st December 2020 till 11th March 2020). The results of the study suggest that the declaration of the novel COVID-19 as a pandemic was the most devastating event for stock markets. This was confirmed by using various parametric and non-parametric tests. In addition, the last event was further analyzed by observing CARs of various indices individually.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.