Impact of intellectual capital on financial performance in the pharmaceutical industry in Iran

Abstract

In the era of knowledge-based economy, organizations make use of two distinct sources for value creation and profit, i.e., tangible resources and or intangible resources. On the other hand, it is believed that intellectual capital could be better than the material and physical capital in explaining financial performance indicators of companies. Regarding this background, the present research, through an investigation done on the performance of 22 pharmaceutical companies in the period of [2004][2005][2006][2007][2008], revealed that companies' efficient and optimal use of material and intellectual resources affects their profitability index. Also, efficiency has a negative effect on the productivity of human capital and productivity of structural capital has a positive impact on equity. Finally, no evidence was found about the hypothesis that the market value changes of companies can be attributed to the performance of intellectual capital and it seems that Iranian pharmaceutical market still continues to be sensitive to material capital more than intellectual capital.

The market value of equity of manufacturing companies during the COVID-19 pandemic

“…2021.01and intangible assets). The finding of the study supportsAnghel et al (2018) andJasor et al (2013), who stated that IC has a positive effect on DER.The result also discovered that IC cannot moderate the effect of EPS on MVE. Several companies experienced a decline in IC use.…”

“…Thus, it will increase the company's MVE(Anghel et al, 2018). Previous research on IC and DER showed that IC has a positive effect on DER(Anghel et al, 2018;Jasor et al, 2013; Chang & Lee, 2012). Accordingly, it is hypothesized that DER affects MVE, with IC as a moderating variable.…”

Impact of investment in intangible assets on corporate performance in India

“…Fang and Lin (2010) and Wang (2011) in Taiwan found that the large-sized firms have increased performance. Besharati et al (2012) in Tehran and Jasor and Rezazadeh (2013) in Iran also supported similar findings. However, our results are contradictory with the results of Ho et al (2005).…”

The Effect of Debt to Equity Ratio, Earning Per Share and Company Size on Market Value of Equity With Intellectual Capital As Moderating Variable

“…The reason is that the greater the intellectual capital owned by the company, it will help the company to manage the level of debt that the company aims to increase investment and the smooth operation of the company. Research on intellectual capital and debt to equity ratio studied by Ameneh et al (2015) Chang & Lee (2012) Jasor et al (2013) Winahyu & Mimba (2018) show that intellectual capital has a positive effect on debt to equity ratio. H4: Debt to equity ratio affects market value of equity with intellectual capital as a moderating variable…”