The nexus between corporate governance and intellectual capital in Vietnam

Abstract

Purpose This paper aims to examine the relationship between corporate governance and intellectual capital in the context of Vietnam. In this paper, corporate governance is proxied by various characteristics, including board size, a number of independent members in the board, board remuneration, major shareholder holding more than 20 per cent of the outstanding shares and duality of the CEO. In addition, intellectual capital is measured using the modified value-added intellectual coefficient model (MVAIC). Design/methodology/approach The study uses data of 45 Vietnamese listed firms during 2011-2018. The MVAIC model is used incorporating four components, namely, human capital, structural capital, capital used and relational capital. In addition, GMM regression technique is used in this paper. Findings Empirical findings from this paper indicate that key characteristics of corporate governance, except for board remuneration, may provide a negative effect on the efficient use of intellectual capital. Research limitations/implications Intellectual capital emerges as a new field of research that has not been widely examined in emerging countries such as Vietnam. As such, there have not been many studies focusing on understanding intellectual capital and its role in the performance of enterprises. Further studies can evaluate the relationship between intellectual capital and corporate performance, capital structure, corporate value and social responsibility. This study is limited to listed companies in Vietnam because of data limitations in an emerging market. Studies in the future should extend the sample and/or compare differences between manufacturing enterprises and financial institutions, or between countries. Practical implications Findings from this paper provide a valuable framework for executives, managers and policymakers in managing corporate governance and intellectual capital within the Vietnamese context. Originality/value To the best of the authors’ knowledge, this is the first empirical study that has been conducted to examine the relationship between corporate governance and intellectual capital in the context of Vietnam.

Do banks accumulate a higher level of intellectual capital? Evidence from an emerging market

“…To measure intellectual capital, this study uses the MVAIC model, which has been widely used in previous empirical studies (Buallay et al , 2020; Tran et al , 2020; Soetanto and Liem, 2019; Xu and Li, 2019). MVAIC is measured as follows:where HCE (human capital efficiency) is the marginal contribution of each unit of human capital to value added, SCE i (structural capital efficiency) is the contribution of structural capital in creating value, CEE i (capital employed efficiency) is the marginal contribution of each unit of physical and financial capital to value added and RCE i (relational capital efficiency) is the contribution of relational capital in creating value.…”

Intellectual capital and supply chain resilience

“…Researchers (e.g. Bontis and Fitz-Enz, 2002; Bontis and Nikitopoulos, 2001; Tran et al , 2020) from diverse backgrounds explain the concept of IC differently; nevertheless three dimensions of IC can be found in almost every definition. These are human capital, relational capital and structural capital.…”

Cross-Region Comparison Intellectual Capital and Its Impact on Islamic Banks Performance

“…In other words, it results from reducing the input-output ratio for the operation of the IB. This amount is taken from the bank's operating profit plus salary costs and represents added value because operating profit reduces all costs from income (Tran et al 2020). The current literature links employee productivity with the intellectual level so that labour cost indicators can be used to calculate the VA.…”

“…The formula for calculating the VA is profit before tax plus salary costs. HCE is calculated by dividing VA by HC, which is proxied by personal costs (Tran et al 2020).…”