Value Added Intellectual Capital Research Articles

The Impact of Value-Added Intellectual Capital on Corporate Performance: Cross-Sector Evidence

This study explores the relationship between intellectual capital (IC) and the financial performance of 250 publicly traded companies in France, Germany, and Switzerland from 2009 to 2018, addressing the gaps in prior research regarding the differential impacts of IC components across countries and industries in Western and Central Europe. Using the Value-Added Intellectual Coefficient (VAIC™) approach, this study evaluates human capital efficiency (HCE), structural capital efficiency (SCE), and capital employed efficiency (CEE). Panel regression analyses at the country and industry levels were conducted to assess their effects on financial metrics, such as return on equity (ROE), return on assets (ROA), and asset turnover ratio (ATO). The findings reveal a significant positive association between SCE, CEE, and firm performance, with CEE showing the most substantial effect, while HCE had a relatively weaker impact. Additionally, the study uncovers a trade-off between the accumulation of patents and trademarks and short-term financial performance, raising new considerations for intellectual property management. This research contributes to the literature by providing a nuanced understanding of how IC components influence financial outcomes across different contexts and offers practical insights for firms aiming to optimize structural capital and capital-employed strategies for improved financial performance while acknowledging the limitations regarding the sample of publicly traded firms.

A machine learning analysis of the value-added intellectual coefficient’s effect on firm performance

Purpose Recently, machine learning (ML) methods gained popularity in finance and accounting research as alternatives to econometric analysis. Their success in high-dimensional settings is promising as a cure for the shortcomings of econometric analysis. The purpose of this study is to prove further the relationship between intellectual capital (IC) efficiency and firm performance using ML methods. Design/methodology/approach This study used the double selection, partialing-out and cross-fit partialing-out LASSO estimators to analyze the IC efficiency’s linear and nonlinear effects on firm performance using a sample of 2,581 North American firms from 1999 to 2021. The value-added intellectual capital (VAIC) and its components are used as indicators of IC efficiency. Firm performance is measured by return on equity, return on assets and market-to-book ratio. Findings The findings revealed significant connections between IC measures and firm performance. First, the VAIC, as an aggregate measure, significantly impacts both firm profitability and value. When the VAIC is decomposed into its breakdowns, it is revealed that structural capital efficiency substantially affects firm value, and capital employed efficiency has the same function for firm profitability. In contrast to the prevalent belief in the area, human capital efficiency’s impact is found to be less important than the others. Nonlinearities are also detected in the relationships. Originality/value As ML tools are most recently introduced to the IC literature, only a few studies have used them to expand the current knowledge. However, none of these studies investigated the role of IC as a determinant of firm performance. The present study fills this gap in the literature by investigating the effect of IC efficiency on firm performance using supervised ML methods. It also provides a novel approach by comparing the estimation results of three LASSO estimators. To the best of the author’s knowledge, this is the first study that has used LASSO in IC research.

Intellectual capital and firm performance of Jordanian financial institutions

This study aims to explore the financial implications of intellectual capital in the Jordanian financial sector during the period 2009–2018. It uses Pulic’s (2004) value-added intellectual capital model, particularly capital employed efficiency, structural capital efficiency, and human capital efficiency, and tests its potential effect on firm financial performance measures, including return on assets, return on equity, asset utilization ratio, and Tobin’s Q. The study’s findings demonstrate that value-added intellectual capital positively influences the financial performance of Jordanian financial companies. Value-added intellectual capital is not found to have a significant impact on productivity, but it is strongly and positively related to firm profitability and market value. As for the main components of value-added intellectual capital, human capital efficiency has a significantly positive impact on a company’s performance, but regarding structural capital efficiency, the outcomes vary depending on the measure of firm performance. Notably, when firms are categorized into sub-industries (banks, insurance companies, and financial service companies), it is found that the profitability of insurance companies is more affected by intellectual capital than that of banks or financial services. The results also show that investors place great importance on the efficiency of intellectual capital, particularly within the banking industry. Furthermore, implementing Shariah compliance standards boosts the positive effect of structural capital efficiency on corporate market value and reinforces the positive influence of human capital efficiency on productivity.

Intellectual capital and firm value: The role of firm performance

Businesses worldwide are getting new opportunities and facing challenges due to increased market competition and the transformation of globalization dynamics. To become successful and to get a competitive edge, it has become imperative for companies to adopt modern business strategies. This study empirically examines the nexus between intellectual capital and firm value with the mediating role of firm performance. VAIC (value-added intellectual capital) has been taken as an independent variable along with its three components, i.e., VACA, VAHU, and STVA. ROA and ROE have been taken as a measure of firm performance. Firm value was measured through Tobin’s Q. The panel data was collected from non-financial firms listed on the Pakistan stock exchange for six years resulting in 474 observations. Fixed-effect regression test was conducted with the help of Eviews 9.0. The findings revealed that intellectual capital positively impacts the firm value. Moreover, firm performance mediates the nexus between intellectual capital and firm value. This study has contributed not only to literature related to intellectual capital, firm performance, and firm value but is also helpful for practitioners and managers as it provides insight into the specific components of intellectual capital, which generates firm value if invested and maintained efficiently and effectively.

Pengaruh Intellectual Capital dan Enterprise Risk Management Terhadap Nilai Perusahaan dengan Kinerja Keuangan sebagai Variabel Intervening (pada Perusahaan Farmasi yang Terdaftar di Bursa Efek Indonesia Periode 2018-2021)

Price book value is an indicator of company value that is usually used as an assessment by investors when investing. This research aims to obtain the results of a study of the influence of intellectual capital with the value added intellectual capital (VAIC) indicator and enterprise risk management with the indicator (COSO ERM) on company value and financial performance as intervening variables in pharmaceutical sector companies listed on the Indonesia Stock Exchange for the 2018 period. -2021. The method used was purposive sampling so that a sample of 9 companies was obtained. Data analysis uses partial least squares (PLS). The research results show that intellectual capital, enterprise risk management and financial performance directly have a positive and significant effect on company value. The research results also state that intellectual capital and enterprise risk management which are mediated by financial performance variables have a positive influence on company value.

Revealing the potential of FinTech innovation through knowledge assets: a study of firm financial performance

Purpose This study aims to investigate the association of FinTech innovation (FinTechINN) and firm performance (FP) by considering the role of knowledge assets (KA) as a causal mechanism underlying the FinTechINN – FP association. Design/methodology/approach In this study, the authors consider panel data of 1,049 Chinese A-listed firm and construct a structural model for corporate FinTech innovation, knowledge assets and firm performance while considering endogeneity issues in analyses over the period of 2014–2022. The modified value added intellectual capital (VAIC) and research and development (R&D) expenses are used as a proxy measure for knowledge assets, considering governance and corporate performance measures. Findings According to the findings of this study FinTech innovation (FinTechINN) has a positive significant effect on firm performance. Particularly; the findings disclose that FinTech innovations has a link with knowledge assets, FinTech innovations indirectly affects firm performance, and the association between FinTech innovation and firm performance is partially mediated by knowledge assets (MVAIC and R&D expenses). Originality/value Rooted in the dynamic capability and resource-based view, this study pioneers an empirical exploration of the association of FinTech innovation with firm performance. Moreover, it introduces the novel dimension of knowledge assets (on firm-level), acting as a mediating factor with in this relationship.

Analysis of Intellectual Capital on Company Financial Performance in PT Reethau Cipta Energy

The research aims to investigate the relationship between intellectual capital of the key resource-based components of the company (physical capital, human capital and structural capital) with financial performance using ROA (return on assets), ROI (returns on investment), and GR (growth revenue). The data is sobtained from the financial reports of the company PT Reethau Cipta Energi for the period 2019 – 2021 and the results of employee questionnaires on a Likert scale. This study tested three elements of VAIC (value added intellectual capital) and measures the financial performance of an enterprise using partial least squares (PLS) for data analysis that showed that: (1) Intellectual Capital has a significant influence on Return on Assets (ROA). Intellectual Capital Affects Return on Investment (ROI). (3) Intellectual capital has a significant impact on Revenue Growth (GR). (4) Intellectual capital has no significant influence on overall financial performance.

Intellectual Capitals on Banking Financial Performance: Evidence from Indonesia

Intellectual Capital as a tool to measure intangible assets become popular recently especially when technology and knowledge started to work together. The study examines the relationship between intellectual capital and financial performance Listed on Indonesian stock exchange from year 2015 to 2020. The study used value added intellectual capital (VAIC) methods for measuring intellectual capital and by running the regression to analyze the relation between financial performance and intellectual capital. The results indicate that intellectual capital contributes to ROA, ROE, and Tobin’s-q as proxy for financial performance. The Study further extends the understanding of the functions of intellectual capital to build good financial performance for a company.

Intellectual Capital and Corporate Sustainable Growth: An Empirical Study on Indian Agribusinesses specific to Pesticides and Fertilizer Companies

This study aims to evaluate the impact of Intellectual Capital on the Sustainable Growth Rate of Indian Agribusiness companies. Intellectual Capital plays a vital role in the global agriculture business. Data is collected from 17 Agribusiness companies engaged explicitly in pesticides and fertilizers between 2011 and 2022, using Prowessiq (CMIE) and financial reports. The Extended Value-Added Intellectual Capital (E-VAIC) model is employed to measure Intellectual Capital. The System Generalized Method of Moments (S-GMM) regression method is employed for data analysis. The results revealed that Innovation Capital Efficiency and Human Capital Efficiency are the most significant variables that affect the Sustainable Growth of Indian Agribusiness companies. The other Intellectual Capital variables, such as Relational Capital Efficiency and Structural Capital Efficiency, positively impact the Sustainable Growth Rate. The study concludes that Indian Agribusiness companies must recognize the importance of Intellectual Capital resources and invest in them to achieve long- term corporate growth.

The Influence of Intellectual Capital on LQ45 Companies Performance

The development of science and technology has led to a shift in businesses from being labor-based to knowledge-based. Companies are expected to create value from the knowledge they possess, which includes their intangible assets. This study aims to examine the relationship between the intellectual capital and the companies’ performance. Some of the previous studies have focused on a tool for measuring intellectual capital called value added intellectual capital (VAIC), which divides intellectual capital into VAHU, STVA, and VACA components. The study population consisted of all LQ45 companies, and a purposive sampling technique was used to select samples. The study used a quantitative approach and employs multiple regression analysis to analyze the data gathered from the financial reports of selected companies. The results indicated that both STVA and VACA have an impact on ROA, while only VACA has impact on TQ. This research creates an awareness among management to properly manage intellectual capital to enhance their overall organizational performance. Further studies may use different measures of intellectual capital and examine organizational performance under.

Pengaruh Intellectual Capital Terhadap Kinerja Keuangan pada Bank Pembiayaan Rakyat Syariah (BPRS) di Indonesia dengan Model Value Added Intellectual Capital (VAIC) Periode 2016-2020

Competition in the Islamic banking industry is tight, so the competence of Islamic banking human resources must increase. This needs to be done to increase the lack of resources who have studied and received good education and training, but when they return due to unfavorable environmental factors, the results of education and research be wasted.
 This study aims to determine the effect of Intellectual Capital on Financial Performance in Islamic People's Financing Banks (BPRS) in Indonesia with the Value Added Intellectual Capital (VAIC) Model. There is research data using monthly time series data taken in the 2016-2020 period. Data analysis technique uses PLS (Partial Least Square) with processing using Warp-PLS 7.0 Software.
 The test results using the SEM-PLS approach show that Intellectual capital IB-VACA has a positive and significant effect on the financial performance of Indonesian Islamic banking. By obtaining a path coefficient value of 0.482 with a p value of P

Relationship between Intellectual Capital, Firm Performance and Leverage with Firm Values: Empirical Evident from Indonesia

The aim of this study is to investigate the relationship between the Value Added Intellectual Capital (VAIC) components, Firm Performance and leverage on Firm Value. The validity of Firm Value measurements will be tested using Tobin's Q, Price Earnings per Share (PER), and Price to Book Value (PBV) with Assets as a control variable. The research design is explanatory research through hypothesis formulation, using panel regression. The research population is 122 manufacturing industries are listed on the Indonesian capital market, with a sample N valid of 277, observation period 2018-2020. Based on the robustness test, the model fits when the firm value uses Tobins'Q and PBV. Research findings show that Capital Employee Efficiency (CEE) and Return on Equity (ROE) positively influence Tobin'sQ. On the other hand, Firm Performance (ROA) positively influences firm value (PBV), Net Profit Margin (NPM) and leverage (DAR) negatively influence PBV. The inconsistency in research results on the influence of IC, Firm Performance, and Leverage on firm value is more caused by different measurement models. Therefore, in interpreting the relationship patterns of IC, Firm Performance and Leverage on Firm Value, must carefully based on the measurement characteristics and underlying concepts. IC, Firm Performance and Leverage substantially influence firm value, supporting previous research.

Impact of intellectual capital on earnings management and financial performance

Intellectual capital is widely recognized as one of the most important assets in modern businesses, but it is only reported in the financial statement in certain conditions. This study aims to evaluate the role of value-added intellectual capital (VAIC) in moderating the relationship between earnings management and financial performance. This research uses data from non-financial companies listed on the Singapore Exchange and Indonesia Stock Exchange covering the period of 2016–2021, with a total of 3,303 firm-year observations. VAIC is measured using Pulic’s intellectual capital model and earnings management using the Kasznik Model (1999). This study uses multiple linear regressions to examine the relationship between variables. The findings indicate that earnings management has no significant effect on the financial performance of Singapore, but it has a significant positive effect on the financial performance of Indonesia. Furthermore, this study discovers that intellectual capital moderates the relationship between earnings management and financial performance in both countries differently, that intellectual capital moderation is positive (negative) for the Singapore (Indonesia) sample. These findings suggest that the role of intellectual capital varies depending on stock exchanges; Singapore is considered a developed country in Southeast Asia, whilst Indonesia is considered a developing one. This study concludes that the role of intellectual capital in the relationship between earnings management and financial performance varies between market characteristics and across industries.

Company Value is Influenced by Intellectual Capital, Funding Decisions, and Investment Decisions: Telecommunications Sub Sector Companies on the Indonesia Stock Exchange for The 2014- 2021 Period

This study aims to determine the effect of Intellectual Capital, Funding Decisions, and Investment Decisions on Firm Value. The dependent variable in this study is Firm Value proxied by Tobin's Q model. The independent variables in this study are Intellectual Capital proxied by VAIC (Value Added Intellectual Capital), Funding Decisions proxied by DER (Debt to Equity Ratio), and Investment Decisions proxied by TAG (Total Asset Growth). The sample in this study are companies in the Telecommunications Sub-Sector for the 2014-2021 period. The sampling technique used purposive sampling, 4 companies were selected as research samples, from a total population of 10 companies. The results of the analysis show that Intellectual Capital (VAIC) has a positive and significant effect on firm value (Tobin's Q). This result illustrates that improving the quality of human resources in a company is very important and plays a role in efforts to increase firm value. Funding Decision (DER) has a negative and significant effect on firm value (Tobin's Q) this illustrates that investors are very sensitive to increased debt which can lead to debt default and increased bankruptcy risk. Investment decision (TAG) does not affect firm value (Tobin's Q). This situation illustrates that investment decisions as illustrated by asset growth are not a driving force for increasing firm value. This can be caused because if the asset is not productive, in the long term the accumulated value will be lower.

Innovation and Firm Performance: The Moderating Role of Intellectual Capital among Chinese Companies

This study examines the impact of innovation on firm performance and how intellectual capital (IC) moderates the association between innovation and firm performance. We apply an innovation index that measures the frequency of innovative related words, which appear in firm financial reports to proxy for innovation. IC is estimated through the value-added IC (VAICTM) model. This study analyses Chinese firm-year observations of financial profitability (firm value) datasets, which total 19,152 (18,276) over the years from 2007 to 2019. Results indicate that the innovation index is positively related to financial profitability and firm market value. Moreover, the moderating outcomes suggest that IC boosts the positive relationship between innovation index and firm performance. Overall, this study highlights the importance of having innovation and IC together for gaining firm competitive advantages and progressing profitably. That is, firms should be innovative and must manage their IC well.

The Moderation Power of Good Corporate Governance on Modified Value-Added Intellectual Capital and Corporate Social Responsibility Towards Corporate Values Post Pandemic Covid-19

Purpose: The author wants to know whether the Modified Value Added Intellectual Capital and Corporate Social Responsibility models could affect company value with Good Corporate Governance as moderator. Theoretical framework: Good corporate governance (GCG) is a practice that generally affects company value. GCG increases business success and corporate accountability to create good corporate value. Companies implementing GCG long-term can guarantee sustainability, increase profits significantly, and optimize corporate value for shareholders and other stakeholders. If a company has excellent and accurate governance, it can increase the value of the company. Design/methodology/approach: This study uses Moderated Regression Analysis (MRA). MRA is a tool to test the strength of the influence of two or more variables and test the causal relationship between the variables, which is strengthened or weakened by the moderating variable Findings: The research results conclude that banking companies will survive more if Corporate Social Responsibility increases. Modified Value Added Intellectual Capital is a finding that does not affect firm value, unlike previous studies. Good Corporate Governance does not moderate the influence between Corporate Social Responsibility and company value is also a finding because it differs from several previous studies. Research, Practical & Social implications: This study provides new knowledge about the reality of the power of GCG in moderating MVAIC with CSR after the Covid 19 pandemic, so that future researchers can continue with this formulation model. this research also contributes to enriching the library as a whole Originality/value: This new study uses Modified Value Added Intellectual Capital on company value after the Covid-19 pandemic, using Moderated Regression Analysis (MRA). There has yet to be any research with models and analyses like this before. This study is helpful for future researchers to determine the relationship between corporate social responsibility and intellectual capital modified by good corporate governance as a moderating variable.

Do Intellectual Capital and Financial Performance Connect With Stock Price Volatility?

Purpose: This study aims to analyze the effect of intellectual capital (IC) and financial performance on stock price volatility Methodology: The methodology used is a quantitative approach with panel data regression analysis. The sample selection method used a purposive sampling method with criteria set by the researchers resulting in 37 mining companies from 2014 - 2021. Findings: The results of this study indicate that human capital, structural capital, and capital employed do not affect stock price volatility. Relational capital has a significant positive effect on stock price volatility. Furthermore, earnings volatility and return on assets show a significant positive effect on stock price volatility. The results of this study reject the assumptions of the resource-based view theory. This study has implications for practices in the capital market, where most investors have yet to consider IC in their investment decisions. Novelty: Not much research has been done on the renewal of stock price volatility; The intellectual capital factor uses the Value-Added Intellectual Capital (VAIC) method in the form of human capital, structural capital, employed capital and rational capital; The financial performance factors used are earning volatility, dividend payout ratio and return on assets; Renewal of research objects using mining sector companies; Research data from 2016-2021.

The Moderating Role of Sustainability Disclosure on the Relationship between Intellectual Capital and Firm Performance

The purposes of this research were to study the relationship between intellectual capital and firm performance, and the relationship between intellectual capital and firm performance which was moderated by sustainability disclosure. The accounting firm's performance was measured by return on assets (ROA), and the market firm's performance was measured by Tobin's Q. Sustainability data were collected according to GRI Standards. The intellectual capital was measured by value-added intellectual capital (VAIC). The sample included 185 firms from three industries; agriculture and food, technology, and service industry listed on the Stock Exchange of Thailand from 2018 to 2020. The results showed that intellectual capital had a positive relationship with accounting performance and market performance. When the moderating role of sustainability disclosure was examined, it was found that sustainability disclosure positively moderated the relationship of value-added intellectual capital (VAICTM) on market performance (Tobin’s Q) at a significance level of .05. The results showed that intellectual capital influenced firm performance and enhanced firm efficiency, particularly when firms paid attention to sustainability disclosure.

EFFECT OF INTELLECTUAL CAPITAL DISCLOSURE ON SHARE PRICE

Changes and developments in technology and knowledge have an impact on the business world, making intangible assets critical to a company’s success. However, awareness about the importance of disclosure of intangible assets, especially intellectual capital, is still low. This study aims to analyze the disclosure of intellectual capital as measured using Value Added Intellectual Capital (VAIC) related to its relevance to stock prices as measured using the closing price. The population taken is companies that are listed on the Indonesia Stock Exchange, especially those in the infrastructure sector companies in 2020-2021. By using purposive sampling in the use of samples, it was found that there were 68 observations were acquired during the course of two-year observation period. The findings show that intellectual capital does not significantly affect the stock price variable. In other words, that more information about intellectual capital does not increase stock prices, and vice versa.

Intellectual Capital and Banking Financial Performance in Indonesia

The purposes of the research were to analyze the impact of intellectual capital on banking financial performance. Intellectual capital in this study was measured with the method of Value-Added Intellectual Capital (VAIC). The banking financial performance was measured with the indicator of profitability ratio and capital ratio. The hand of profitability ratio is Return on Asset (ROA) and Net Interest Margin (NIM), While the indicator used to measure the capital ratio is Capital Adequacy Ratio. The sample used in this study is 125 observed data of 25 banks listed on the Indonesia Stock Exchange for 2016-2020, which met the criteria determined. Data were analyzed using WarpPLS 7.0 software. This study shows that overall intellectual capital, which VAIC measures, has a positive and significant impact on ROA. Still, it does not substantially impact NIM and does not affect CAR. However, one of the components of intellectual capital, HCE and SCE, partially has the most significant impact on forming VAIC and has a positive and significant effect on ROA and NIM. This IC component is believed to be able to improve the company’s performance in the current era of rapid technological development