Examining the relationship between intellectual capital and performance of listed environmental protection companies

Xu, Xinlong; Yang, Xiaonan; Liang, Zhiyao; Liu, Cheng Kun; Ni-Di, Zhou; Hu, Meimei

doi:10.1002/ep.12572

Cited by 40 publications

(24 citation statements)

References 52 publications

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“…(3) Control variables. Firm size (SIZE), measured as the natural logarithm of total assets at year-end, and debt ratio (LEV), measured by total debt to its total assets, are included, consistent with previous studies [25,57,68,69].…”

Section: Variablesmentioning

confidence: 94%

Intellectual Capital, Financial Performance and Companies’ Sustainable Growth: Evidence from the Korean Manufacturing Industry

2018

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Intellectual capital (IC) is considered to be a wealth generator and driver of financial performance thus creating competitive advantage and sustainability in business. This paper empirically investigates the impact of IC on financial performance and sustainable growth in the Korean manufacturing industry. Multiple regression models are applied with data collected from 390 manufacturing companies listed on the Korean Stock Exchange during 2012–2016. The results of the analysis show that IC has a positive impact on financial performance and companies’ sustainable growth. In addition, companies’ performance and sustainable growth are positively related to physical capital, human capital (HC), and relational capital (RC). RC is found to be the most influencing factor. Finally, innovative capital captures additional information on structural capital (SC) which negatively affects the performance of Korean manufacturing companies. The results extend the understanding of IC in creating corporate value and building sustainable advantages in emerging economies.

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Section: Variablesmentioning

confidence: 94%

Intellectual Capital, Financial Performance and Companies’ Sustainable Growth: Evidence from the Korean Manufacturing Industry

2018

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“…(1) Dependent variables. Guided by previous studies [4,5,11,16,17,63,64,69,71,72], ROA and ROE are used as the measure of profitability. ROA is measured as the ratio of a bank's net income to average total assets, and ROE is measured as the ratio of a bank's net income to average shareholders' equity.…”

Section: Variablesmentioning

confidence: 99%

Should Listed Banks Be Concerned with Intellectual Capital in Emerging Asian Markets? A Comparison between China and Pakistan

Haris

Yao

2019

Sustainability

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The purpose of this study is to determine and compare the relationship between intellectual capital (IC) and banks' performance in China and Pakistan. The data are acquired from listed banks in these two countries during 2010-2018. The Value Added Intellectual Coefficient (VAIC ™ ) method is applied as a measure of IC. The results show that capital employed efficiency (CEE) makes the highest contribution to bank performance in both countries. In addition, the profitability of listed Chinese banks is driven by structural capital efficiency (SCE), while human capital efficiency (HCE) positively affects bank profitability and productivity in Pakistan. In addition, we find that the lagged effect of IC has a positive impact on future bank profitability. This study supports greater investment in IC in order to further improve bank performance in emerging Asian markets.Sustainability 2019, 11, 6582 2 of 23 infrastructure, which can bring great facility for companies. Following this, for the ease of channelizing the business transactions, the Bank of China (BOC) commenced its first branch in 2017 in Karachi, the financial capital city of Pakistan. However, before this only the Industrial and Commercial Bank of China (ICBC) operated in Pakistan. Both ICBC and BOC are listed Chinese banks. China and Pakistan are emerging Asian financial markets with good neighborly relations and close cooperation [24]. In emerging markets, the financing and lending role of the banking sector is utmost important for ensuring a sustained economy [17].According to the World Bank, bank capital to assets ratio in China grows from 6.60% to 8.56%, while Pakistan witnesses a downward trend (see Figure 1). Although the nonperforming loans to total gross loans in Pakistan gradually declines over the period 2014-2017, this ratio in China is much lower than that in Pakistan (See Figure 2). Haneef et al. [25] concluded that nonperforming loans have an adverse effect on the performance of banks in Pakistan. These indicate that the Chinese banking industry is much healthier than the Pakistani banking industry, and Pakistani banks operate with relatively higher risk exposure. However, the Pakistani banking system is more open as many foreign banks operating in Pakistan compared to the Chinese banking system [26]. Recently, China has revised the Regulations on the Administration of Foreign-funded Banks to lower the threshold of establishing foreign branches in China, which can stimulate the vitality of banking sector and improve the competitiveness of Chinese and foreign financial institutions. The opening up of the Chinese banking sector will provide opportunities for Pakistani banks to establish their branches in China. Considering that the competition among banks will become severer with financial liberalization, banks will expand their operation in the international market [27]. It will require that banks fully utilize local resources to improve the competitiveness under different business environment. We choose these two countries for comparison, not ...

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“…In the current knowledge era, intangible assets have gradually replaced physical and financial assets in business operation (Oppong and Pattanayak 2019;Vishnu and Kumar Gupta 2014). Intellectual capital (IC) composes a set of intangible resources, and researchers have begun to realise the role of IC in determining corporate competitive advantage and firm performance (Kianto, Andreeva, and Pavlov 2013;Xu et al 2017;Xu and Li 2019;Xu and Liu 2020;Xu and Wang 2018;Xu, Chen, and Zhang 2020). IC investment has continued to increase and reached a high level in the dynamic world (Maaloul and Zéghal 2015).…”

Section: Introductionmentioning

confidence: 99%

Does intellectual capital investment enhance firm performance? Evidence from pharmaceutical sector in China

2020

Technology Analysis & Strategic Management

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Examining the relationship between intellectual capital and performance of listed environmental protection companies

Cited by 40 publications

References 52 publications

Intellectual Capital, Financial Performance and Companies’ Sustainable Growth: Evidence from the Korean Manufacturing Industry

Intellectual Capital, Financial Performance and Companies’ Sustainable Growth: Evidence from the Korean Manufacturing Industry

Should Listed Banks Be Concerned with Intellectual Capital in Emerging Asian Markets? A Comparison between China and Pakistan

Does intellectual capital investment enhance firm performance? Evidence from pharmaceutical sector in China

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