Examining the Relationship between Intellectual Capital and Financial Performance: An Empirical Study of Service and Manufacturing Sector of India

Singh, Raman Deep; Narwal, Karam Pal

doi:10.1504/ijlic.2018.10014951

Cited by 3 publications

(10 citation statements)

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“…Intellectual capital is an intangible asset in form of information and knowledge resources that can increase the ability to compete and can improve company performance (Pulic, 1998) (Pulic, 1998). The board of commissioners is a supervisory mechanism as well as a mechanism that can provide direction and guidance on corporate governance (Deep and Narwal, 2014). The board of commissioners is calculated by adding up all members of the board of commissioners in a company (Deep and Narwal, 2014).…”

Section: Methodsmentioning

confidence: 99%

“…Board of commissioners is the core of Corporate Governance which is assigned to ensure the implementation of corporate strategy, supervise management in managing the company, and oblige accountability. (Deep and Narwal, 2014).…”

Section: Board Of Commissionersmentioning

confidence: 99%

“…It also has a role to ensure the managers to improve corporate performance, so that the company objective can be achieved (Mahrani and Soewarno, 2018). Deep and Narwal (2014) added that the main function of the board of commissioners is to supervise the completeness and quality of information reports on the performance of the board of directors. The board of commissioners as the top management system in the company has a significant role in supervision.…”

Section: H1: Intellectual Capital Has Positive Effect On Financial Pe...mentioning

confidence: 99%

“…A research by Ararat et al, (2016); Mahrani and Soewarno (2018); Deep and Narwal (2014); Fung (2014) revealed that the size of the board of commissioners has a positive effect on the company's financial performance. This means that the more the board of commissioners, the better the supervision level of the company.…”

Section: H1: Intellectual Capital Has Positive Effect On Financial Pe...mentioning

confidence: 99%

“…This role is expected to minimize agency conflicts that occur between the board of directors and shareholders because the board of commissioners is responsible for implementing corporate governance. Deep and Narwal (2014) indicated that there is a positive effect between the board of commissioners and financial performance. It is supported by the research of Ararat et al, (2016), that there is a positive and significant relationship between the board of commissioners and the company's financial performance.…”

Section: Introductionmentioning

confidence: 99%

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The Role of Intellectual Capital and Good Corporate Governance Toward Financial Performance

Kartika

Indriastuti

Sutapa

2021

JASET

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The purpose of this study is to analyze and test empirically the variables that affect financial performance. Using 520 manufacturing companies listed on Indonesia Stock Exchange for the period of 2010-2019, all data were processed by using the structural equation modeling analysis. The results of this study explained that intellectual capital and good corporate governance in terms of the board of commissioners have a significant positive effect on financial performance. The existence of intellectual capital and the board of commissioners can improve financial performance, so that manufacturing companies are able to survive and even be stable. The implication of this study is to enrich the literature review and to be used as policy making basis for the government and manufacturing companies. Moreover, it can be a basis for investors to consider an investement

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Section: Methodsmentioning

confidence: 99%

Section: Board Of Commissionersmentioning

confidence: 99%

Section: H1: Intellectual Capital Has Positive Effect On Financial Pe...mentioning

confidence: 99%

Section: H1: Intellectual Capital Has Positive Effect On Financial Pe...mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The Role of Intellectual Capital and Good Corporate Governance Toward Financial Performance

Kartika

Indriastuti

Sutapa

2021

JASET

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The impact of intellectual capital on financial performance: An empirical investigation of Indian technology industry

Singh

2024

JMRA

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This paper examined the association of intellectual capital and physical capital with financial performance (productivity and profitability) and market valuation (MB) in technology sector of India. IC efficiency of the companies was measured through Value added intellectual coefficient (VAIC) methodology. To examine the relationship of intellectual capital with financial performance and market valuation, the panel regression models have been employed in the study. The results evinced that value added intellectual capital coefficient (VAIN) has no relationship financial performance measures (ATO and ROA) and market valuation (MB) respectively. The results also found that physical and financial capital (VACA) has a significant influence on productivity and profitability of the organization. It is divulged that Indian technology-intensive firms still depend on tangible assets for organizational efficiency. This study is an eye opener for policy makers, government officials and other stakeholders to analyze the factors for non-existence relationship of intellectual capital with financial performance and market valuation respectively.

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Effect of Intellectual Capital on Profitability of Healthcare Firms in Nigeria.

Peter Izuchukwu

2023

JARBMA

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This study examines the causal effect relationship that exist between intellectual capital and profitability of listed health care firms in NigeriaExchange Group. The study used panel data and adopted ex-post facto research design. Four objectives and hypotheses formulated for the study were tested using data collated from financial report of the health care companies used in the study between 2011 to 2021 fiscal year. The data collated were analysed using regression analysis, however some preliminary analysis such as descriptive statistics, correlation analysis, as well as some diagnostic analysis like Shapiro wilk test normality test were carried out to ascertain the presence of multi-colinearity, and the normality/fitness of the data used. The study finds that intellectual capital components have 53.5% impact on the profitability of health care companies in Nigeria. The finding from the specific objectives indicated that human capital, structural capital and capital employed have positive and significant effect on profitability of health care firms in Nigeria Exchange Group. While relational capital has positive but insignificant effects on profitability of health care firms. Based on the result and findings, the study recommends that management of Health care companies listed on the Nigeria exchange group promotes policies that would attract quality human capital and retaining them as this would enhance the possibility of achieving high profitability.

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Examining the Relationship between Intellectual Capital and Financial Performance: An Empirical Study of Service and Manufacturing Sector of India

Cited by 3 publications

References 0 publications

The Role of Intellectual Capital and Good Corporate Governance Toward Financial Performance

The Role of Intellectual Capital and Good Corporate Governance Toward Financial Performance

The impact of intellectual capital on financial performance: An empirical investigation of Indian technology industry

Effect of Intellectual Capital on Profitability of Healthcare Firms in Nigeria.

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