Intellectual capital and performance of listed firms during the global financial crisis: the effects of legal origin

Abstract

Purpose This study aims to reveal to what extent successful European listed firms depend on their intellectual capital investment in achieving business success during the global financial crisis. Design/methodology/approach This study used value added intellectual coefficient (VAIC) methodology to measure the effect of intellectual capital on financial performance of business, which consist of 683 the sample listed firms. To examine the nexus between intellectual capital, legal origin and firm performance, estimated panel test and ordinary least squares regression model is used to data obtained from a sample of European countries. Findings The finding of this study suggests that there exists a positive relationship between intellectual capital and firm performance with return on assets (ROA) before the financial crisis, while firm performance with return on equity did not contribute to intellectual capital before and after the crisis period. Additionally, common law countries have a positive and statistically significant impact on firm performance with ROA for the before-crisis period, while code law countries have positively significant effect with VAIC on ROA. Practical implications The VAIC method has played a critical role in the management decision-making process to integrate the intellectual capital in the financial crisis period. Originality/value This study examines intellectual capital components such as human capital, structural capital and process capital efficiencies and firm performance in the legal origin context. The empirical evidence shows that there are significant impacts of legal origin on the nexus between intellectual capital and performance of listed firms during the global financial crisis.

Evaluating the Intellectual Capital of Intensively Tourism-Dependent Countries Between, Prior, and During the COVID-19 Pandemic

“…One was the exploration of the differences between the overall IC or intangible assets, while another concentrated on comparisons of the IC components themselves. Although there were a limited number of studies in the first direction, the past relevant findings or suggestions [29,31] still supported the first hypotheses highlighting the differences of IC or IC-related impacts between crisis and non-crisis periods. In the current economy, this crisis can lead to the shortage of financial resources, and this directly and negatively affects the investments into non-financial assets or intellectual capital [31,32].…”