Censoring model for evaluating intellectual capital value drivers

Cheng, Meng‐Yuh; Lin, Jer‐Yan; Hsiao, Tzy‐Yih; Lin, Thomas W.

doi:10.1108/14691930810913195

Cited by 20 publications

(13 citation statements)

References 27 publications

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“…Indictors of intellectual capital elements are collected from the literature on the measurement of intellectual capital or factors of business performance. By replacing the background information, such as age, education and work experience, we use average operating revenue per employee (Cheng et al, 2010;Tseng, et al, 2015) and average net profit per employee (Cheng et al, 2008) to stand for human capital because an increase in the revenue per employee means that the employees contribute more to the corporation and enhance the corporate value (Tseng et al, 2015).…”

Section: Datamentioning

confidence: 99%

Do intellectual capitals matter to firm value enhancement? Evidences from Taiwan

Cheng

Huang

2020

JIC

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PurposeThe purpose of this study is to find evidence of the impact of intellectual capital on firm value, and, in turn, enhance the existing literature which lacks consensus on it. By employing some distinctive proxies for human capital, innovation capital, customer capital and process capital, this study might provide valuable information for firms to make strategic decisions.Design/methodology/approachThis study uses Tobin's Q to represent firm value and various variables to be the proxies for intellectual capitals. By utilizing firm-year observations, this study applies panel data models first, and then Petersen regression models for further investigation to enhance the robustness of the empirical results.FindingsFirm value is affected positively by the average net profit per employee as well as goodwill and intangible assets. This is because firms having employees with abundant knowledge will possess advantage for innovation, and the excellent reputation, a part of goodwill for oriental firms, would encourage people to consume and invest more.Research limitations/implicationsThe constraint of data resource is the main limitation. With the limited scales and as an emerging market of Taiwan Stock Exchange, it is not confirmed whether the results are appropriate for the developed markets. Nevertheless, firms should make efforts on developing intellectual capital and corporate governance for operating businesses with competitiveness and safety.Originality/valueSince capable employees enhance the innovation, innovation improves customer's satisfaction and good customer relationship increases the sales; this study illustrates that for expanding businesses, firms should make more efforts on developing intellectual capital.

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Section: Datamentioning

confidence: 99%

Do intellectual capitals matter to firm value enhancement? Evidences from Taiwan

Cheng

Huang

2020

JIC

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“…An oft-cited study by Fornell (1992) found evidence that nurturing customer relationships via customer satisfaction lowers the elasticity of demand to price changes and improves company prestige. More recently, a study by Cheng et al (2008) has shown that RC as measured by a composite index of quantitative items (such as selling expenses and sales to major customers) has a highly significant and positive effect on market value in a sample of listed healthcare companies. In a later study, the same authors (Cheng et al, 2010) have used the input costs of maintaining customer relationship (i.e.…”

Section: Rcmentioning

confidence: 99%

Intellectual capital and firm performance in the global agribusiness industry

Scafarto

Ricci

Scafarto

2016

Journal of Intellectual Capital

126

139

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Purpose – The purpose of this paper is to investigate the relationship between intellectual capital (IC), categorized in terms of four sub-constructs – namely, human capital (HC), relational capital (RC), innovation capital (InnC) and process capital (PrC) – and business performance in the agribusiness industry. Design/methodology/approach – Based on a sample of international agribusiness companies observed over a five-year period, this paper uses correlation and multiple regression analysis to test for the existence of a positive relationship between each IC component and conventional business performance metrics. Findings – The empirical results support the hypotheses that RC and PrC have a positive impact on corporate performance. Counter to the expectations, InnC by itself is negatively associated with performance. Results also failed to confirm the hypothesis that HC directly and positively affects performance. However HC positively moderates the relation between InnC and performance, which suggests that firms that heavily invest in HC are better placed to gain returns from their research and development (R & D) investments. Originality/value – This study expands the existing research on the link between IC and performance by adding fresh evidence from a highly knowledge-intensive sector which has been under-researched thus far. It may also contribute to the specific literature on R & D and performance as it uncovers that the value-generating effect associated with R & D investments is contingent on the levels of HC.

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“…The objective nature of the physical asset and an asset that is invisible can be achieved through the use of related assets, human resources and organizational performance relationships outside the business. All these features create value within organizations and earned value because it is a completely internal, merchantability (Chen et al, 2008). …”

Section: Intellectual Capitalmentioning

confidence: 99%