Today, competitive advantage and success are achieved by strategic management of intellectual capital rather than allocation of physical and financial resources. Although intellectual capital is not a tangible and objective factor, it is often measured in order to compare the market value and development of firms and improve their performance. This paper examines the relationship between intellectual capital and firm performance in Iran using the Pulic's model. In this model, value added intellectual coefficient is used to evaluate firms' intellectual capital. Also, the relationship between intellectual capital and firms' market value is examined. In addition to intellectual capital, the relationship between the components of intellectual capital—that is, human and structural capital—and performance is also investigated. The empirical data is collected from 100 firms listed on Tehran Stock Exchange (TSE) during the period 2000–2006. The results support the hypothesis that human and intellectual capital are positively related to performance (Tobin's Q), and intellectual capital can be taken into consideration for improving the performance of Iranian firms. Also, value added intellectual coefficient proves to be an effective tool that can be used by current decision‐makers in Iran's capital market. The findings and discussions provided in this paper can be of interest to managers and capital market stakeholders. We emphasize that intellectual capital is the main source of value creation in the modern economy. Copyright © 2016 John Wiley & Sons, Ltd.

Purpose This study aims to link environmental disclosure quality (EDQ) to firm performance and examine the moderating role of board independence in this relationship. Design/methodology/approach Drawing on agency theory and stakeholder theory, the authors developed and tested hypotheses using original survey data from 720 firm-year observations collected from 120 Iranian companies over six years between 2011 and 2016. In this paper, they conducted static and dynamic panel data analysis. Findings After correcting for endogeneity bias, the results showed that there is a significant positive relationship between EDQ and firm performance. The results also showed that board independence significantly reinforces the positive effect of EDQ on performance, and firms with more independent board members are involved environmental disclosure for improved performance. This is consistent with agency theory, which posits that a more independent board of directors can better monitor the CEO and reduce incentives for pursuing personal interests, which in turn improves performance. The results are robust after performing sensitivity tests. Research limitations/implications This paper takes the perspective of corporate governance to empirically examine the effect of EDQ on firm performance. This study makes a contribution to the literature by showing that board independence moderates the effects of EDQ on firm performance. Practical implications The evidence supports the emphasis that recent policy statements have put on increasing the number of independent directors on corporate boards. This study offers insights to policymakers interested in enhancing the monitoring role of corporate boards. Originality/value The study adds value to the understanding of the effect of the EDQ on performance and how board independence influences this relationship, particularly in an emerging economy like Iran.

Purpose The purpose of this paper is to examine the association between corporate environmental disclosure quality (EDQ) and earnings quality (EQ). Design/methodology/approach The paper uses earnings persistence and accruals quality as a measures of EQ. The paper also uses panel data regression to examine the association between EDQ and EQ for a sample of 107 Iran non-financial firms. Two different theoretical frameworks are used to clarify whether and to what extent an association may exist as an explicit relationship between EDQ and EQ. Findings After controlling for several firm-specific characteristics, the results show that between 2011 and 2016, there has been a significant positive relationship between EDQ and EQ. Practical implications This study sheds light on the relevance of regulating corporate reporting within a setting where companies are already voluntarily reporting on environmental information. Findings have implications for policymakers who have mandated or considering mandating environmental reporting. To the policymakers, in particular, this study highlights the need for incorporating, within the listing rules, minimum requirements in relation to the nature and content of environmental reports. Social implications The findings have implications for stakeholders in terms of effective information quality. The findings are important as more environmentally responsible firms may provide higher quality, more reliable and more transparent information to meet the ethical expectations of stakeholders. Originality/value This is the first study in Iran that considered the impact of EDQ on EQ. This study contributes to the literature on the relationship between EDQ and EQ by showing that the EDQ in Iran is associated with the EQ.