The Impact of Intellectual Capital on Firm Value: Empirical Evidence From Vietnam

Nguyen, Anh Huu; Doan, Duong Thuy

doi:10.5430/ijfr.v11n4p74

Cited by 26 publications

(38 citation statements)

References 22 publications

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“…[14], [15] show that companies with high levels of leverage will carry out extensive earnings management. [16] concluded that intellectual capital, human capital, and capital used did not affect firm value; furthermore, other researchers [17] showed that intellectual capital had a positive and significant effect.…”

Section: Introductionmentioning

confidence: 93%

Antecedents of Financial Performance Influence on Intellectual Capital and Firm Value

Devita¹,

Setyadi²,

Paminto³

et al. 2021

ujaf

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Achievement of Corporate Value can have a positive impact, both internally and externally. This study aims to examine the effect of several variables on firm value mediated by earnings management and moderated by intellectual capital in property, real estate, and building construction companies on the Indonesia Stock Exchange (IDX) investigated. The number of samples is 58 companies, and this study uses secondary data in the form of financial statements for the 2014-2019 period. The data was processed using Path analysis with the Warp PLS program, which was used to analyze the effect of exogenous variables on endogenous variables to obtain a comprehensive picture of the relationship between variables. The results of this study indicate that increasing share ownership by managers in the company is not able to create optimal company performance; on the other hand, the greater the growth of the company, the smaller the practice of earnings management will be. The positive path coefficient indicates that the higher the capital structure score, the better the earnings management will be. Company ownership has a negative and significant effect on Company Value. The negative path coefficient indicates that the greater the share ownership by both managerial and institutional, the lower the firm value. Capital structure has no significant effect on firm value, indicating that the larger the capital structure, it is unable to have a real impact on changes in firm value. Furthermore, this study shows that earnings management significantly mediates the effect of firm ownership, firm growth, and capital structure on firm value. The Moderation test shows a negative and significant coefficient. Intellectual capital weakens the influence of earnings management. Better intellectual capital will reduce the impact of earnings management practices; then, the decline in the value of the company can be controlled.

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Section: Introductionmentioning

confidence: 93%

Antecedents of Financial Performance Influence on Intellectual Capital and Firm Value

Devita¹,

Setyadi²,

Paminto³

et al. 2021

ujaf

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show abstract

“…The more unique resources that a company possesses, the greater its value. Nowadays, the traditional concept of value has been partially replaced by intellectual capital, which is often regarded as a competitive advantage (Sardo and Serrasqueiro 2017 ; Moon and Kym 2006 ; Setiany et al 2020 ; Ting et al 2020 ; Nguyen and Doan 2020 ; Salvi et al 2020 ).…”

Section: Literature Overviewmentioning

confidence: 99%

Expected vs. real growth of companies listed on the London Stock Exchange

Pietraszewski

Gniadkowska-Szymańska

Bolek

2023

J Econ Finan

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The aim of this paper is related to the growth opportunity measures representing the expected growth and their relationship with the real growth of companies. The motivation for this research is based on the evidence that growth opportunity measures may fail to predict future growth as measured by earnings per share. In the presented paper the companies listed on LSE are divided for two groups depending on the market they are traded: FTSE100 index and AIM all-share index. It was found that in both samples the growth opportunity measures relationship with the real growth is significant. The difference between companies listed on the main and alternative markets may influence the efficiency of growth opportunity measures predicting the future growth, and therefore the samples should be analyzed separately. The methods applied in this paper include the correlation analysis between growth opportunity and real growth variables, panel data OLS models with fixed effects and the differences between the correlation and regression tests. It can be concluded that growth opportunity measures predict the growth of companies as measured by EPS.

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“…The capital employed efficiency is revealed using a ratio which discloses the extent to which the naira spent on using capital generates value for the company. Nguyen and Doan (2020); Ewereoke (2018); Kurfi, Noraza and Saleh (2017);and Onyekwelu, Okoh and Iyidiobi (2017) submitted that capital employed efficiency as a component of intellectual capital has a positive effect on firm performance. Okeke and Udeh (2020), assessed the effect of intellectual capital on the profitability of Nigerian deposit money banks.…”

Section: Effect Of Intellectual Capital Efficiency (Human Structural ...mentioning

confidence: 99%

Intellectual Capital and Corporate Performance of Listed Consumer Goods Firms in Nigeria Stock Exchange

2023

EJBM

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Resources such as financial, physical and intangible assets of the firm ought to be optimally managed and utilized in order to ensure that the firm achieves its financial objectives of wealth maximization. Intellectual capital is the most innovative feature for firms to act on according to the environmental changes through their knowledge, experience, and capabilities, which is applied to improve the organizational efficiency (Egolum, 2021). It is now a growing need amongst firm to strategize ways by which their resources could be best maximized for optimal financial returns, hence, the particular attention paid to intellectual capital which is popularly believed to contribute towards the value-added of the firm. (Alfiero, Brescia & Bert, 2021;Ovechkin, Romashkina & Davydenko, 2021).Intellectual capital refers to the various intangible assets which can be converted into profits or value but are not reflected in the financial statements of the firm (Ngoc & Duc, 2020). Extant literature classified intellectual capital into three, namely, human capital, structural capital and capital employed efficiency. Human capital refers to the skills, competencies and experience of the employees which altogether enable them contribute value to the course of the firm. While structural capital is the sum of methods, processes and brands that are owned by the firm, capital employed efficiency (CEE) refers to the economic term that reflects the level of exploitation and use of capital of a firm in production and business activities with the view to creating maximum value at the barest or minimum cost. Corporate performance, which ordinarily measures or indicates the extent to which a firm achieves its financial objectives, is all about how to create knowledge and transform that same knowledge into value. Therefore, in total disagreement with the submission of Kasoga (2020) that there is a debate on the empirical nexus between intellectual capital and the corporate performance of firms, the researcher underscores that the significant contribution of intellectual capital towards the enhancement of the corporate performance of firms is undebatable, it is indubitable. This is because almost all corporate researchers in this line have a consensus that ownership of knowledge, applied experience, organization innovation, customer relationship, and professional competencies, experience and skills essentially facilitate value creation amongst firms. However, intellectual capital is often not accounted for properly in the financial reports, and some firms still have low investment in intellectual capital. And so, the corporate performance of such firms with demonstrated inadequacies in their intellectual capital continues to be eroded.With the current globalized economy of the world, there is now an increasing need for knowledge and information which seem to jointly determine the financial success and sustainability of firms, especially the consumer industry where intellectual capital has apparently assumed the characteristic of a product (O...

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The Impact of Intellectual Capital on Firm Value: Empirical Evidence From Vietnam

Cited by 26 publications

References 22 publications

Antecedents of Financial Performance Influence on Intellectual Capital and Firm Value

Antecedents of Financial Performance Influence on Intellectual Capital and Firm Value

Expected vs. real growth of companies listed on the London Stock Exchange

Intellectual Capital and Corporate Performance of Listed Consumer Goods Firms in Nigeria Stock Exchange

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