The nexus between corporate governance and intellectual capital in Vietnam

Abstract

PurposeThis paper aims to examine the relationship between corporate governance and intellectual capital in the context of Vietnam. In this paper, corporate governance is proxied by various characteristics, including board size, a number of independent members in the board, board remuneration, major shareholder holding more than 20 per cent of the outstanding shares and duality of the CEO. In addition, intellectual capital is measured using the modified value-added intellectual coefficient model (MVAIC).Design/methodology/approachThe study uses data of 45 Vietnamese listed firms during 2011-2018. The MVAIC model is used incorporating four components, namely, human capital, structural capital, capital used and relational capital. In addition, GMM regression technique is used in this paper.FindingsEmpirical findings from this paper indicate that key characteristics of corporate governance, except for board remuneration, may provide a negative effect on the efficient use of intellectual capital.Research limitations/implicationsIntellectual capital emerges as a new field of research that has not been widely examined in emerging countries such as Vietnam. As such, there have not been many studies focusing on understanding intellectual capital and its role in the performance of enterprises. Further studies can evaluate the relationship between intellectual capital and corporate performance, capital structure, corporate value and social responsibility. This study is limited to listed companies in Vietnam because of data limitations in an emerging market. Studies in the future should extend the sample and/or compare differences between manufacturing enterprises and financial institutions, or between countries.Practical implicationsFindings from this paper provide a valuable framework for executives, managers and policymakers in managing corporate governance and intellectual capital within the Vietnamese context.Originality/valueTo the best of the authors’ knowledge, this is the first empirical study that has been conducted to examine the relationship between corporate governance and intellectual capital in the context of Vietnam.