Intellectual Capital &amp; Firm Performance: An Empirical Study on the Oil &amp; Gas Sector of Pakistan

Kharal, Mina; Abrar, Muhammad; Zia‐ur‐Rehman, Muhammad; Khan, Muhammad Sarfraz; Kharal, Maria

doi:10.5296/ijafr.v4i1.5759

Cited by 9 publications

(8 citation statements)

References 20 publications

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“…Particularly, the result aligns with Anumudu (2010) that training, education, Medicare and research are strongly associated with productivity of manufacturing industries in Enugu and Anambra States [34]. The result is also in agreement with the findings of Ukenna et al (2010); Perera and Thrikawala (2012); Bassey and Tapang (2012); and Ezejiofor, et al (2017) that increases in staff salary has positive effect on organizational profitability, the level of increment in staff has influence on organizational profitability and also that staff retirement benefits have positive effect on organizational profitability [22,26,30,33].…”

Section: Discussion Of Findingssupporting

confidence: 87%

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Effect of Human Capital Expenditures on Corporate Social Responsibility of Oil and Gas Firms in Nigeria

Cyril¹,

Amoge²,

Nkemdilim³

2019

AJTAB

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This study is to ascertain the effect of human capital expenditures on corporate social responsibility of oil and gas firms in Nigeria It spanned for the period of 10 years (2008-2017) and made use of secondary data extracted from the financial reports and accounts of the oil and gas firms selected for the period. The study adopted ex-post facto research design and employed the panel least squares multiple regression analysis. Findings of the study provided empirical evidence that human capital expenditures proxy by expenditure on salaries and wages, on education and training and expenditure on health have significant positive effect on Corporate Social Responsibility (CSR) of oil and gas firms in Nigeria. This implies that increases in volume of corporate social functions of the firms are associated with increases in spending on the human capital indices. Based on these findings, it was recommended among others that oil and gas firms should keep up in the corporate supports to the community since it helps in the growth of their firms and ensure good salary pay structure for their workers to motivate them in community supports.

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Section: Discussion Of Findingssupporting

confidence: 87%

“…Ukenna, Ijeoma, Anionwu and Olisa (2010) examined the effect of investment in human capital development on organizational performance [30]. Twenty-five small scale business owners were purposively selected in Awka metropolis of Nigeria.…”

Section: Empirical Reviewmentioning

confidence: 99%

Effect of Human Capital Expenditures on Corporate Social Responsibility of Oil and Gas Firms in Nigeria

Cyril¹,

Amoge²,

Nkemdilim³

2019

AJTAB

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“…Only HCE is having a significant impact on the stock return. Kharal et al (2014) check the impact of "value added intellectual coefficient" on organizational performance of oil and gas sector of Pakistan listed on the Karachi stock exchange during the year 2005 to 2013. The results indicate that "value added intellectual coefficient" has significant impact on M/B ratio.…”

Section: Published By Sciedu Press 125 Issn 1927-5986 E-issn 1927-5994mentioning

confidence: 99%

Enterprise Value and Intellectual Capital: Study of BSE 500 Firms

Sharma¹

2018

AFR

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The purpose of this paper is to estimate the intellectual capital coefficient of the firms under study and to study the relationship, if any between intellectual capital and intellectual capital and its constituents. In this empirical paper, analytical research design has been used. Pulic's VAIC (modified) has been used to estimate the intellectual capital of BSE S&P 500 listed firms from [2007][2008][2009][2010][2011][2012][2013][2014][2015][2016]. The data has been collected from CMIE and collected data has been analyzed using Pearson correlation and linear multiple regression analysis using CMIE PROWESS. Findings show that almost all firms under study have a good VAIC score means above 4 and the top VAIC scorer firms were mainly from refinery, metal, cement, steel, tobacco. Correlation analysis and Linear multiple regression analysis show that M/B ratio has a significant relationship with VACA, VAHU, Research and Development (Innovation capital) and Advertisement expenses (customer capital). Year-wise results depicts that value of adjusted R 2 is increasing, in 2007 it was just .164 and in the year 2016 it is .607 which infers that VAIC's role is improving in measuring the market value of firms under study. Year wise analysis shows that adjusted R 2 is improving, so findings may serve as significant input for the firms to use intellectual capital as the main factor for improving the market value of firms. This paper will definitely contribute to the existing literature.

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“…In line with this conclusion, organizations were urged to consider establishment and development costs of human resources as strategic investment options necessary for providing corporate competitive edge (Okpala & Chid, 2010;Micah, Ofurum & Ihendinihu, 2015). Kharal, Zai-ur-Rehman, Abrar & Khan (2014) had also examined the effects of intellectual capital on the performance of companies in the oil and gas sector of Pakistan, using correlational research design and VAIC model. Data on the three components of VAIC (human capital, structural capital, and capital employed efficiency) alongside three measures of financial performance (return on assets, return on equity, and earnings per share) were extracted from 12 listed oil and gas companies over the period 2005-2013 (given an average of six years data for each company).…”

Section: Discussion Of Findingsmentioning

confidence: 99%

Training Cost and Financial Performance Nexus: Sector Analysis of Quoted Manufacturing Firms in Nigeria

2019

RJFA

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Accounting functionaries are increasingly recognizing that human capital features productive capabilities, which manifest as skills, experience, and knowledge. These valued competencies make personnel adaptable, productive and competitive amongst contemporaries. This study, therefore, focuses on quoted manufacturing firms in Nigeria to determine the effect of human resource cost on financial performance. Adopting ex-post facto design, with panel data spanning 2008 to 2017, the operationalized variables are training cost, return on equity, and earnings per share. Financial time series of all 20 quoted manufacturing firms in Nigeria were obtained for analysis, as contained in Nigerian Stock Exchange publications. Data analysis details and results are presented in terms of Correlation Coefficient (R), Coefficient of Determination (R 2), T-test, F-test, and Granger Causality. Following the outcome (1.660 critical t-value at 0.05 < 3.734 computed t-value), the first null hypothesis is rejected, in favour of the alternate hypothesis, which states that training cost has significant effect on return on equity. Also, regarding the second hypothesis, the adjusted R 2 of 0.594 implies that training cost explains 59.4% of the variations in earnings per share. These revelations affirm that human resource cost has significant effect on financial performance of quoted manufacturing firms in Nigeria. It is, therefore, recommended that the firms should recognize human capital investment as prime requisite for corporate performance, and strive to improve their human capital investment to total assets ratio. They also consistently ensure proper classification of cost under their capital and revenue expenditure sub-heads to standardize their financial reporting system.

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Intellectual Capital & Firm Performance: An Empirical Study on the Oil & Gas Sector of Pakistan

Cited by 9 publications

References 20 publications

Effect of Human Capital Expenditures on Corporate Social Responsibility of Oil and Gas Firms in Nigeria

Effect of Human Capital Expenditures on Corporate Social Responsibility of Oil and Gas Firms in Nigeria

Enterprise Value and Intellectual Capital: Study of BSE 500 Firms

Training Cost and Financial Performance Nexus: Sector Analysis of Quoted Manufacturing Firms in Nigeria

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