Human Capital Efficiency Research Articles

The role of fintech in promoting green finance, and profitability: Evidence from the banking sector in the euro zone

Technological innovations have disrupted business models, including those of financial services. New technologies optimize various functional aspects of the banking firms and it is critical to assess if they can expedite green finance while supporting bank profitability. The paper employs a comprehensive sample of European banks between 2011 and 2021 by using a panel fixed effects regression model to study the relationship between the adoption of financial technology and bank profitability. The results show a positive relationship between investment in financial technology and green lending attributable to the search, diligence, and monitoring efficiency of new technologies Similarly, results indicate a direct influence of fintech investment on the risk-adjusted return on capital associated with low cost, expanded product base, and lower economic capital. Findings also show the important role of firm size, human capital efficiency, and market concentration in determining bank profitability and green lending decision. These results have important implications for the role of financial technology in green finance and sustainability-related goals.

Conceptual foundations of motivation of labor and creative activity of the rural population

The analysis of the main macroeconomic indicators and proportions shows a decrease in the efficiency of human capital in the agricultural sector within the system of motivation of labor and creative activity of the rural population. It was found that the relatively low share of the average number of workers in agricultural organizations in the total number of those employed in rural areas indicates the need to expand the boundaries of the motivational profile of human capital increment. Agrarian-territorial communities – formal and informal associations of people, directly or indirectly influencing its formation and development, are considered as objects of incentives.

Intellectual Capital, Capital Structure, Firm Size, Firm Age and Financial Performance

This study aims to find out how the role of the components of intellectual capital and capital structure on financial performance in financial sector companies listed on the Indonesia Stock Exchange during 2018-2020. Samples were selected by purposive sampling method and valid data were 59 companies. The data processing technique uses multiple regression analysis assisted by the EViews 12 SV program and Microsoft Excel. The results of this study show that the three components of intellectual capital, namely structure capital efficiency, human capital efficiency and capital employed efficiency as well as capital structure have a significant influence on the company's financial performance. The implication of this study is that it is necessary to maintain the company's attention to employees, the values that can make the company unique, as well as company funding that will improve the company's financial performance that will provide a good signal for investors.

Intellectual Capital, Capital Structure, Firm Size, Firm Age and Financial Performance

This study aims to find out how the role of the components of intellectual capital and capital structure on financial performance in financial sector companies listed on the Indonesia Stock Exchange during 2018-2020. Samples were selected by purposive sampling method and valid data were 59 companies. The data processing technique uses multiple regression analysis assisted by the EViews 12 SV program and Microsoft Excel. The results of this study show that the three components of intellectual capital, namely structure capital efficiency, human capital efficiency and capital employed efficiency as well as capital structure have a significant influence on the company's financial performance. The implication of this study is that it is necessary to maintain the company's attention to employees, the values that can make the company unique, as well as company funding that will improve the company's financial performance that will provide a good signal for investors.

Digitalization and Firm Financial Performance in Healthcare: The Mediating Role of Intellectual Capital Efficiency

The digitalization of processes in healthcare sector firms is expected to reduce costs, improve the quality of healthcare service, customer care experience, and patient safety, and attain efficiency and efficacy in project implementation. This research investigates the impact of digitalization on the financial performance of healthcare-sector firms in the European Union. The study also examines whether a firm’s intellectual capital efficiency mediates the process of digitalization’s impact on a firm’s financial performance. Using a sample of 965 firm observations from 2017 to 2021, we find that digitalization positively affects financial performance. Further analysis suggests that capital-employed efficiency fully mediates the relationship between digitalization and firm performance. Partial mediation is also reported for intellectual capital efficiency, human capital efficiency, and structural capital efficiency in the process of digitalization impacting firm performance. These findings provide fresh insight into how digitalization impacts a firm’s financial performance, establishing intellectual capital efficiency as a mediating mechanism that may explain this impact.

Examining the Impact of Intellectual Capital Performance on Financial Performance in Islamic Banks

This study explores the intellectual capital (IC) performance of Islamic banks (IBs) and examines the impact of intellectual capital on financial performance in terms of profitability and productivity in IBs. The IC features are also examined individually to identify the primary driver of IC performance and their individual impact on the IBs’ financial performance. A quantitative method using multi regression analysis is utilised to examine the nexus between IC and the IBs’ financial performance indicators. The measurement of IC uses Modified Value-Added Intellectual Coefficient (MVAIC™) which is an extended model of VAIC™. The data were drawn from 49 IBs from 2014 to 2018. The empirical findings indicate that IC is positively significant in impacting IBs’ financial performance measures, especially profitability, but inconclusively related to productivity. Furthermore, when the components were analysed separately, the nexus between these components and IBs’ financial performance indicators show lesser uniform results. Capital employed efficiency and human capital efficiency are found to be the most influential features of IC in this study, while structural capital efficiency does not show an impact on financial performance. Evidence also demonstrates that all IC components are not significantly related to IBs’ productivity indicator. The study offers an extended understanding of IC and its role in IBs and may provide guidance to different stakeholders including regulators and management of IBs to formulate and structure relevant strategies to create, utilize, and maintain IC for the more resilient banking sector, as extensive practical implications are provided for this purpose.

The Relationship between Changes in Corporate Governance Characteristics and Intellectual Capital

The primary goal of this study was to investigate the effects of changes in corporate governance elements on a company’s valuable resources (such as intellectual capital and its components). Previous studies have examined the impacts of some corporate governance characteristics on intellectual capital performance as a whole and they have produced inconclusive and different results. This paper examines the effects of some corporate governance characteristics (i.e., the change in CEO, the evolution of auditor, the change in board independence, and the change in institutional ownership) on intellectual capital and its components (i.e., capital employed, human capital, and structural capital). This research is based on a quantitative study and the selected sample contains 1170 observations from 220 companies listed on the Middle East Stock Exchange from 2011 to 2018. The research findings show a positive and significant relationship between an increase in institutional ownership and intellectual capital and its two components (human capital and structural capital). The results support the relationship between a change in auditor and intellectual capital and human capital efficiency. Further, a positive and significant association was found between an increase in board independence and human capital. However, no relationship was found between a change of CEO and intellectual capital or any of its components. This study extends the research field of corporate governance by studying the effects of changes in corporate governance characteristics on intellectual capital for the first time. Given the significant role of intellectual capital in the performance of firms, this study provides essential information to organisations’ decision makers.

ЛЮДСЬКИЙ КАПІТАЛ ЯК ФАКТОР ПІДВИЩЕННЯ ЕФЕКТИВНОСТІ ТА КОНКУРЕНТОСПРОМОЖНОСТІ КОМПАНІЇ

The article is aimed at studying human capital in order to create a model for assessing human capital to achieve higher enterprise efficiency and enhance its competitiveness in the market. The results of scientific and thematic studies on the concept, elements and methods of evaluating human capital have been determined and summarized. It has been determined that the approaches of individual authors, companies and analytical institutions are different, and there is a frequent use of simpler indicators that can be calculated based on the financial statements of companies. In particular, Armstrong notes that there is a difference in how human resource management is theoretically described and how it is applied in practice. The mere replacement of the term “personnel management” with the term “human resource management” does not mean that managers actually apply the main components of the philosophy of human resource management in their approach. From the definition of human capital, it follows that its components are knowledge, experience, skills, talent, competencies, etc. These components simultaneously become the main object of effective management in companies and give names to specific types of management, such as knowledge management, talent management, competent management, anti-crisis management, generation management, etc. The resulting model inherently covers separate blocks for assessing human capital efficiency at two levels, summarizing the theoretical starting points. This is the procedural side of evaluating the effectiveness of the LK itself, which is the central part of the complex approach of the MLK, taking into account its specifics, based on their identification, definition and comparison of opinions about this concept described in the professional literature and other sources. It has been proven that the components of human capital are the main objects of effective management in companies that change the strategic vector aimed at achieving the maximum possible profit, towards creating company value, using non-financial categories. The close relationship between the competitiveness of an enterprise with the use of unique human capital resources has substantiated. A model for evaluating the effectiveness of human capital is proposed in order to increase the competitiveness of an enterprise in the market, taking into account external and internal influencing factors. It has been established that the implementation of measures to assess the effectiveness of human capital can lead to the following effects: a decrease in undesirable turnover of personnel with a high level of human capital, in the development of which funds have already been invested; support of labor motivation of employees through a fairly established remuneration; exchange of knowledge and experience directly related to labor activity, which is a potential opportunity for the stable development of the human capital of the enterprise; improving the image of the enterprise through the introduction of new technologies; creation of a new product based on the results of monitoring competitors’ products and in accordance with modern requirements and customer expectations; positioning the company as a sought-after employer, which is a guarantee of obtaining and retaining qualified personnel.

INTELLECTUAL CAPITAL AND FINANCIAL PERFORMANCE OF QUOTED COMPANIES IN NIGERIA


 The study examined the impact of intellectual capital on the financial performance of quoted companies in Nigeria. The study employed twenty-five companies from five sectors of the economy. The ex-post facto research design was employed in the study, to aid the use of secondary data within 2015-2020 was soured from the financial statement of the companies. The dependent variable was measured using the sales and asset growth of the selected companies and the intellectual capital was measured using the human capital efficiency, structural capital efficiency, and relational capital efficiency. The findings revealed that structural, relational capital efficiency and value-added have a negative, positive and positive significant effect on sales and asset growth of the selected companies. It is therefore recommended that the organization should invest in the structural and relational capital efficiency in the organization because it has the intrinsic capacity to improve the level of performance in the organization. 

Sustainability of Human Capital Efficiency in the Hotel Industry: Panel Data Evidence

The COVID-19 pandemic resulted in significant changes to business operations, particularly addressing human resources and their role within the firm. This study aims to assess the sustainability of human capital efficiency in the hotel industry, including the early effects of the COVID-19 pandemic. In accordance with the value-based approach, the human capital efficiency (HCE) coefficient was calculated on a sample of 157 hotels in a five-year period, including the year in which the pandemic was declared. We employed a quantitative methodology based on the VAICTM method of assessing human capital efficiency and Annual Compounded Growth Rate (ACGR) to evaluate the trend of human capital efficiency. The research results showed a change in the trend of human capital efficiency in the hotel industry in 2020, as well as a change in the mean value of the HCE coefficient. Hotels with a higher category demonstrated a better ability to create value using human capital. The contribution of this work is represented in the quantification of the sustainability of human capital efficiency in the observed period and the early impact of the COVID-19 pandemic on the value-added efficiency of human capital in the hotel industry.

What Is Next for Companies with Low Human Efficiency: The Quantitative Talent Planning Model

Quantitative workforce management has become more popular since the pandemic as companies are eager to find methods to accurately locate the sources of their reducing human efficiency and ROIs of human capital. This paper aims to shed light on the applicable methods of quantitative talent planning to adjust the workforce costs and staff ratios between different departments of a company. The present study analyzed the average workforce costs and cost benefit ratios data from electronics production & design companies. The regression method was also applied to illustrate these two factors' trends and relationships. The paper's main findings are the Equal Workforce Efficiency Curve and the four-zone coordinate axis, which can help companies understand their current economic position compared to other competitors in their field. We also propose a strategic management framework to assist companies in using our methodologies more conveniently and confidently.

Nexus Between Intellectual Capital, Financial Performance and Sustainable Growth: Evidence from the Turkish ICT Industry

The paper aims to measure, using the VAIC model, the impact of intellectual capital and its elements on the financial performance and sustainable growth of Turkish ICT companies listed on the Istanbul Stock Exchange (ISE). Panel data regression was used to analyse 31 Turkish ICT companies’ activity for 2019-2022. To measure the relationships between financial performance, sustainable growth and its determinants, sixteen functional models were developed, the formation of which was based on the following types of used dependent variables – Return on Assets, Return on Equity, Return on Sales, Sustainable Growth Rate. Ten independent variables were used, such as VAIC, Modified VAIC, Capital Employed Efficiency, Human Capital Efficiency, Structural Capital Efficiency, Research and Development Capital Efficiency, Relational Capital Efficiency, Leverage, Size, and Dummy Variable for Subbranch. The findings expand the understanding of the importance of intellectual capital management in generating enterprise value and providing sustainable advantages by high-tech companies in the context of forming a knowledge-based economy. The regression analysis of the impact of VAIC and its structural components on Turkish ICT companies’ financial performance and sustainable growth showed rather contradictory results. The most significant effects on the financial performance of Turkish ICT companies and sustainable development are Return on Assets – VAIC, Modified VAIC, Human Capital Efficiency, Research and Development Capital Efficiency, Leverage, Dummy Variable for Subbranch; Return on Equity – Human Capital Efficiency, Leverage; Return on Sales – Human Capital Efficiency, Leverage, Structural Capital Efficiency, Size; and Sustainable Growth Rate – Research and Development Capital Efficiency, Capital Employed Efficiency, Leverage. The expediency of increasing investments in the development of experience and professional skills of employees of Turkish ICT companies, as well as strengthening their innovative activities, which will ensure the growth of their profitability in the short term, have been substantiated.

The Nexus between Human Capital Investment and Firm Growth of Selected Non-Financial Firms in Nigeria

The purpose of this study is to examine the nexus between human capital investment and firm growth of selected ICT and services firms in Nigeria. Based on judgemental sampling, secondary data were employed. Panel data regression model was used to examine Return on Assets (ROA), Human Capital Efficiency (HCE), Employee Growth (EG) and Staff Cost (SC)on firm growth. The findings show that there is a negative and significant relationship between human capital efficiency and firm growth. It also, reveals a positive and significant relationship between employee growth and firm growth. There is, however, a negative and insignificant relationship between return on asset, staff cost and firm growth. The findings should be helpful to board members, managers, investors and regulators. The study recommends that selected non-financial firms should invest on human capital efficiency and employee growth through strategic training and retraining to enhance, initiate and sustain firm growth. To ensure adequate return on human capital investment, ICT and services firms should bond their staff to curtail rapid turnover of highly skilled staff.

The Influence of Intellectual Capital on Earnings Quality: Evidence from Firms Listed on the Cambodia Securities Exchange

ABSTRACT This study aims to determine whether the efficiency of intellectual capital (IC) and each of its three constituents—human capital efficiency (HCE), capital employed efficiency (CEE), and structural capital efficiency (SCE)—can generate better earnings quality (EQ) in an emerging market. Drawing on the Pulic (2004) model for measuring the efficiency of IC and the absolute value of discretionary accruals as a proxy for EQ, the study analyzes the data of a sample of Cambodian nonfinancial firms listed on the Cambodian Securities Exchange (CSX) during the period from 2013 to 2021. The empirical results indicated that Cambodian firms active in utilizing IC has more tendency to provide reports of high quality. Besides, it is shown that each of the three elements of IC significantly and positively influences EQ. Meanwhile, SCE has the most significant impact among the three components. Those results offer an enhanced understanding of IC-utilizing and EQ practices that might be in favor of investors, regulatory bodies, and scholars. This study is among the first studies investigating Cambodian firms for IC and EQ topics. Keywords: : Earnings quality; Value-added intellectual coefficient; Human capital efficiency; Employed capital efficiency; Structural capital efficiency

Conceptualization and socio-economic scientific problems of inclusive education: international legislation, experience of EU and Ukraine

Introduction. The research of inclusion, development and formation of inclusive educational and training environment take place in the discourse of education and scientific, socio-economic paradigms, taking into account the international rights, freedoms and values of EU. The basis of the inclusive education development is the human-centered model, social needs, and also value of human resources and human capital, which are laid down in the EU documents and programs. The purpose: on the basis of on the basis of the analysis of studies of the conceptual features of the development of inclusive education, international legislation and cases of the formation and development of inclusive education, identify practical value and develop recommendations for the development of inclusive institutions in the discourse of the development of international law and international economy, cases of international institutions, as well as in the context of the economic efficiency of preservation human capital. Methods. The methods of analysis, synthesis, sampling and mathematical calculations of the development effectiveness of human capital in conditions of inclusion were used in the study. The results. In the context of the inclusive education, inclusive learning, scientifically based theoretical and practical resources for learning and teaching development, in which the main focus is aimed at the development of inclusive educational environment in the discourse of international cases and initiatives, are analyzed. Socio-economic and financial-psychological mechanisms of inclusive institutions of professional pre-higher and higher education of national importance socialization are revealed, which is a process of active, therefore selective, coordinated with the system of own needs and values in the field of economy, internalization of economic social values, the process of active involvement of the student as of an individual into the system of educational and scientific and socio-economic relations.

Intellectual capital and firm performance: the moderating effect of controlling shareholders in Malaysia

This study examines: 1) how intellectual capital (IC) investment nonlinearly affects firm performance; 2) how controlling shareholders moderate the nonlinear association between IC investment and firm performance. This study utilises the value-added intellectual coefficient to proxy for the efficiencies of IC and its components, namely, human capital, structural capital and capital employed. Panel regression analysis is conducted utilising data from 733 Malaysian public listed companies for the period 2009-2018. The positive effects of intangible components of IC investments vanish after a certain optimal breakpoint. Regression results also indicate that controlling shareholders moderate the nonlinear impacts of IC and component investment on firm performance except for human capital efficiency. This study is the first to examine the role of controlling shareholders in moderating the relationship between IC investment and firm performance with a joint investigation of controlling shareholders, IC, and firm performance.

The Role of Intellectual Capital in Firms’ Performance and Market Value: Evidence from Jordan

The purpose of this study is to examine the association between intellectual capital efficiency and firms’ financial performance and market value. The study employs the value-added intellectual coefficient (VAIC) model to measure intellectual capital efficiency. This model consists of three elements: human capital efficiency, structural capital efficiency, and capital employed efficiency. The study uses the return on assets (ROA) ratio to measure firms' financial performance and the market-to-book value (MBV) ratio as a measure of market value. Data for a sample of 113 manufacturing and service companies listed on the Amman Stock Exchange for 2014 to 2018 were analyzed using multiple regression analysis. The results indicate that VAIC has a significant positive relationship with a firm’s financial performance, while it is unrelated to a firm’s market value. Human and structural capital also have a positive influence on financial performance, but they have no relationship with market valuation. Capital employed is positively related to both financial performance and market value. The findings of this study would enable companies to better understand the role of intellectual capital in adding value for all stakeholders of the company. They may also bring standard setters’ attention to the need for recognizing or disclosing intellectual capital either quantitatively or qualitatively within the accounting financial reports, which may have the potential to increase the credibility of financial reporting.

Efficiency and productivity analysis of innovation, human capital, environmental, and economic sustainability nexus: case of MENA countries.

Innovation, human capital, economic, and environmental nexus is essential in sustainable development. The Middle East and North Africa (MENA) is an emerging market with the potential to transcend the dilemma of attaining economic and environmental sustainability. Data envelopment analysis through the Malmquist-Luenberger productivity index is utilized to estimate MENA country's innovation, human capital, economic, and economic sustainability efficiency and productivity. Results indicate an upward trend in efficiency, with a 26% increase in average efficiency between 2017 and 2019 compared to 2011 and 2016. However, there is variation in efficiency between countries. The decomposition of the productivity index into technical change and technological change indicates that the efficiency growth in 2017-2019 could be attributed to technical improvement than technological increase. However, there is a shift to more technological progress than technical increase. Study shows that developing human capital and capacity is as integral to sustainable development as innovation advancement. Strategies to simultaneously augment human capital and innovation towards sustainable development are presented.

STUDI EMPIRIS: INTELLECTUAL CAPITAL DAN KINERJA BISNIS HOTEL DAN RESTORAN DI INDONESIA

Since some parts of the world have experienced a tendency to decline the economic environment from the impact of the Covid-19 pandemic. Companies are again intensifying knowledge and innovation through various means, to increase the value of their companies again so that they can boost the economy back to be more stable. Among the strategies carried out through the development of intellectual capital (IC) which is indeed very important in the world of tourism, besides of technology, partnerships, creativity, and the quality of products/services, as well as company finances, which are strongly influenced by the proper use of human resources. Intellectual capital is intangible capital, it is one of the knowledge studied by many researchers because it is important for almost any organization or industry.
 This study aims to explore the influence of Intellectual Capital (IC) on the performance of the hotel and restaurant business in Indonesia, through Return On Assets (ROA) as an appraiser of business performance. This work will evaluate and compare intellectual capital that is limited in three dimensions including: (i) human resources; (ii) structural capital; and (iii) the capital used.
 The research design used the Value Added Intellectual Capital (VAIC) coefficient model by observing financial data from 84 financial statements of hospitality and restaurant companies during 2019-2021. Multiple regression analysis with panel data was used to identify and reveal that IC through the Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE), and Capital Employed Efficiency (CEE) coefficients are related and contribute to the performance of the hospitality and restaurant business in Indonesia.
 The results of the analysis can confirm the influence of IC on the business performance of hospitality and restaurant companies in Indonesia. And recommends the importance of intellectual capital for sustainable organizational productivity.

The Impact of Intellectual Capital and Ownership Structure on Firm Performance

Even though several studies have been done on intellectual capital, ownership structure, and firm performance, their status has remained uncertain in developing countries like Malaysia. Prior studies have generally focused on a single industry and overlooked the input of all Malaysian non-financial firms. This study investigates the impact of intellectual capital, its components, and ownership structure on firm performance. This study employs a balanced panel data examination for the data of 409 non-financial firms from 11 sectors listed on Bursa, Malaysia for five years (2016–2020). The modified value-added intellectual coefficient model was applied to examine the effect of IC efficiency on firm performance. The empirical findings revealed that IC efficiency, human capital efficiency, structural capital efficiency, capital employed efficiency, and relational capital efficiency are positively and significantly related to firm performance. However, physical and structural capital is the most substantial element of intellectual capital efficiency in augmenting profitability. In addition, government and foreign ownership positively affect firm performance. The research will help managers, policymakers, and investors understand how IC investments increase performance and make prudent investment choices in government and foreign ownership firms.