Intellectual Capital and Firms’ Financial Performance: A European Empirical Study‬‬‬‬

Abstract

The current study seeks to analyse the impact of the intellectual capital (IC) on the financial performance measured by Return on Assets in the European context for the period 2004-2015. This study uses data of non-financial listed firms of 8 European countries for the period between 2004 and 2015. Considering that financial crisis had different impact on European countries, we divided the eight countries in two groups: (1) group 1 -Greece, Portugal, Spain and Italy; and (2) group 2 -Germany, France, Finland and United Kingdom (UK). The estimation method used is the GMM system (1998) estimator, as a dynamic panel estimator, which allows to do longitudinal studies and to analyse the effect of lagged explanatory variables on firms" financial performance. The results indicate that IC efficiency in the current period has a positive impact on financial performance. The three components of VAIC TM Model -capital employed efficiency, human capital efficiency and structural capital efficiency in the current period have a positive impact on financial performance, with the exception for structural capital efficiency which for the first group of countries has a negative impact on financial performance. Finally, results suggest that the financial crisis negatively affects financial performance on both groups of countries. The current study contributes to the current literature, analysing the impact of IC on firms" financial performance in two

Intellectual capital and firm performance: an extended VAIC model

“…Pal and Soriya, 2012; Chen et al , 2005; Firer and Williams, 2003; Shiu, 2006a), ROA (e.g. Chang, 2007; Rahman, 2012; Clarke et al , 2011; Sardo and Serrasqueiro, 2017), ROE (e.g. Chang, 2007; Clarke et al , 2011) and ATO (e.g.…”

“…and countries (Malaysia, USA, Australia, Taiwan, Canada, Egypt, Japan, France, Greece, etc.) investigating the relationship between IC and firm performance (Hsu and Wang, 2012; Wang and Chang, 2005; Ng, 2006; Ghosh and Wu, 2007; Wang, 2006; Bose and Oh, 2004; Al-Twaijry, 2009; Cohen and Kaimenakis, 2007; St-Pierre and Audet, 2011; Sardo and Serrasqueiro, 2017; Ferreira and Martinez, 2011; Dzenopoljac et al , 2016; Kianto et al , 2013; Cabrita and Vaz, 2006; Kim and Taylor, 2014). In most of these studies, firm performance has been measured through financial performance and/or market performance indicators.…”

The Impacts of Carbon Emission Disclosure, Environmental Performance, and Social Performance on Financial Performance (Empirical Studies in Proper Participating Companies Listed in Indonesia Stocks Exchange, Year 2013–2016)

“…ROA is calculated as company's operational income before depreciation, divided by the assets [20]. ROA can also be calculated as the ratio of company's net income of the current period to the total assets of the current period [32]. The following is the ROA calculation formula:…”

Intellectual Capital Disclosure and Firm Value: Does Jokowi’s Era Matter?

“…Table 2 shows that SCD dominated by descriptive disclosures which possibly not interesting for investors. The result of the fourth hypothesis test states that there is a negative influence of RCD on firm's value regardless to the different era [43].Companies actually disclose relational capital because they hope by providing more information to the stakeholders, they are able to increase the investors' perceived value toward them. However, based on the result, higher RCD decrease the value of the company.…”