Intellectual Capital and Firm Performance of High Intangible Intensive Industries: Malaysia Evidence

Abstract

In this paper we examine the effect of the aggregate measure of intellectual capital and its component (human capital efficiency, structural capital efficiency and capital employed efficiency) on firm performance (market valuation, profitability, productivity) from the Technology, Trading and Services, Consumer Products and Hotel sectors listed in the main board of Bursa Malaysia. Using value added intellectual capital (VAIC) to measure intellectual capital as well as market to book value (M/B), returns on equity (ROE), returns on asset (ROA) and asset turnover (ATO) for measuring firm performance. The results of this paper revealed that the aggregate measure of intellectual capital (VAIC) has a positive significant effect on M/B, ROE, ROA and ATO. However, when the individual components of VAIC (human capital efficiency, structural capital efficiency and capital employed efficiency) are analyzed, different findings were obtained.

A novel technique for evaluating and selecting logistics service providers based on the logistics resource view

“…To provide a more holistic view, this study uses the intellectual capital concept to classify intangible logistics resources and capabilities. Intellectual capital is the amount by which the market value of an LSP exceeds its tangible (physical and financial) assets minus its liabilities (Mehri et al, 2013). Normally, intellectual capital is classified into three main categories: human, structural and relational capital.…”

The impact of intellectual capital on the financial performance of listed Nigerian food products companies

“…The study regresses the dependent variable (ROA) with the overall independent variable (VAIC), and then associates' dependent variable (ROA) with individual components of IC that is SC and CE. This is consistence with the study of Fathi et al (2013), Mehri et al (2013) and Chan (2011) (Table 9). Tables 9 present the results of model 1 of the study:…”

“…However, the study of Mehri et al (2013) on the relationship between IC and financial performance industries in Malaysia, reported a positive significant relationship. In the same vein, the study of Dadashinasab and Sofian (2014) investigated the effect of IC on high IC firm financial performance with moderating role of dynamic capability for the periods of 2000 to 2011.…”

La medición del capital intelectual y su impacto en el rendimiento financiero en empresas del sector industrial en México

“…Estudios empíricos confirman estos resultados. De acuerdo a Mehri et al (2013) el VAIC TM explicó el 28.5% de la ROA y el 6.2% del MTB, mientras que en el estudio realizado por Mondal y Ghosh (2012) el VAIC TM explicó del 6.3-35.4% de la ROA en un periodo de tiempo comprendido de 1999 a 2008; en el estudio llevado a cabo por Wah et al (2011) el VAIC TM explicó el 20% de la ROA y el 5.2% del MTB. Al compararlo con los resultados obtenidos con las empresas mexicanas del sector industrial se puede observar que en México se genera un mayor porcentaje e influencia.…”

“…A partir de la realización de diferentes estudios empíricos (Mehri et al, 2013;Mondal y Ghosh, 2012y Wah et al, 2011 se ha comprobado cómo el capital intelectual guarda una relación positiva con el desempeño corporativo, por lo que es considerado como un factor determinante para generar H4. Entre mayor sean los nivel de los índices de CEE, HCE y SCE en las empresas del sector industrial la rentabilidad financiera (ROA) será más alta.…”