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The impact of intellectual capital on firm performance and value: An application of MVAIC on firms listed in Borsa Istanbul

Year 2022, Volume: 8 Issue: 1, 47 - 60, 18.02.2022

Aslı Aybars Mehtap Öner

https://doi.org/10.30855/gjeb.2022.8.1.004

Abstract

This paper attempts to evaluate the impact of intellectual capital (IC) and its components on financial performance and value of listed companies operating in Turkish manufacturing industry. Accordingly; using panel data methodology, this study incorporates data of 75 companies listed in Borsa Istanbul (BIST) and data was extracted from Thomsen Reuters Database and Public Disclosure Platform with a total of 825 firm-year observations for the period between 2009 and 2019, inclusive. The Modified Value Added Intellectual Coefficient (MVAIC) is employed to capture IC efficiency together with its components, namely; Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE), Relational Capital Efficiency (RCE), and Capital Employed Efficiency (CEE). The findings fail to provide a significant influence of MVAIC on the selected performance measures. However, as far as additional analysis utilizing the components is concerned, the only contributor to both firm financial performance and value is documented to be CEE while HCE, SCE, and RCE are found to exert no significant impact.

Keywords

intellectual capital MVAIC firm performance firm value panel data analysis

References

  • Baltagi, B. H. (2013). Econometric analysis of panel data. England: John Wiley & Sons.
  • Bontis, N. (2001). Assessing knowledge assets: A review of the models used to measure intellectual capital. International Journal of Management Reviews, 3: 41-60.
  • Bontis, N., Keow, W. C. C. and Richardson, S. (2000). Intellectual capital and business performance in Malaysian industries. Journal of Intellectual Capital, 1(1): 85-100.
  • Bontis, N., Janosevic, S. and Dzenopoljac, V. (2015). Intellectual capital in Serbia’s hotel industry. International Journal of Contemporary Hospitality Management, 27: 1365–1384.
  • Buallay, A. (2019). Intellectual capital and performance of Islamic and conventional banking: Empirical evidence from Gulf Cooperative Council Countries. Journal of Management Development, 38(7): 518-537.
  • Buallay, A., Cummings, R. and Hamdan, A. (2019). Intellectual capital efficiency and bank’s performance: A comparative study after the global financial crisis. Pacific Accounting Review, 31(4): 672-694.
  • Clarke, M., Seng, D. and Whiting, R. H. (2011). Intellectual capital and firm performance in Australia. Journal of Intellectual Capital, 12(4): 505-530.
  • Edvinsson, L. and Malone, M. (1997). Intellectual capital: Realizing your company’s true value by finding its hidden Roots. New York: Harper Collins.
  • Johnson, W. (1999). Integrative taxonomy of intellectual capital: Measuring the stock and flow of intellectual capital components in the firm. International Journal of Technology Management, 18: 562-575.
  • Joshi, M., Cahill, D., Sidhu, J. and Kansal, M. (2013). Intellectual capital and financial performance: an evaluation of the Australian financial sector. Journal of Intellectual Capital, 14(2): 264–285.
  • Mohammad, H. S. and Bujang, I. (2019). Performance of Malaysian financial firms: An intellectual capital perspective using MVAIC model. Asian Economic and Financial Review, 9(7): 752-765.
  • Nazari, J. A. (2010). An investigation of the relationship between the Intellectual Capital components and firm’s financial performance. Unpublished PhD NR69495, University of Calgary, Calgary.
  • Nazari, J. A. and Herremans, I. M. (2007). Extended VAIC model: Measuring intellectual capital components. Journal of Intellectual Capital, 8(4): 595-609.
  • Nimtrakoon, S. (2015). ‘The relationship between intellectual capital, firms’ market value and financial performance: Empirical evidence from the ASEAN. Journal of Intellectual Capital, 16(3): 587-618.
  • Organisation for Economic Co-operation and Development - OECD (2007). Policy brief: Creating value from intellectual assets. Paris.
  • Petty, R. and Guthrie, J. (2000). Intellectual capital literature review: measurement, reporting and management. Journal of Intellectual Capital, 1(2): 155-176.
  • Restuti, M. D., Diyanty, V. and Shauki E. R. (2018). Intellectual capital and firm performance: Applying a modified nalue-added coefficient. Advances in Economics, Business and Management Research, 89: 114-123.
  • Roos, G. and Roos, J. (1997). Measuring your company’s intellectual performance. Long Range Planning, Special Issue on Intellectual Capital 30(3): 413-426.
  • Soetanto, T. and Liem, P. F. (2019). Intellectual capital in Indonesia: dynamic panel approach. Journal of Asia Business Studies, 13(2): 240-262.
  • Stewart, T. A. (1997). Intellectual capital: The new wealth of organizations. New York: Currency Doubleday.
  • Sveiby, K. E. (1997). The new organizational wealth: Managing and measuring knowledge-based assets. San Francisco: Berrett-Koehler.
  • Tatoğlu, F. Y. (2020). Panel veri ekonometrisi stata uygulamalı. İstanbul: Beta Yayınları.
  • Tiwari, R. (2020). Nexus between intellectual capital and profitability with interaction effects: panel data evidence from the Indian healthcare industry. Journal of Intellectual Capital, Vol. ahead-of-print. https://doi.org/10.1108/JIC-05-2020-0137.
  • Tran, D. B. and Vo, D. H. (2018). Should bankers be concerned with Intellectual capital? A study of the Thai banking sector. Journal of Intellectual Capital, 19(5): 897-914.
  • Ulum, I., Ghozali, I. and Purwanto, A. (2014). Intellectual capital performance of Indonesian banking sector: a modified VAIC (M-VAIC) perspective. Asian Journal of Finance & Accounting, 6(2): 103-123.
  • Ulum, I., Kharismawati, N. and Syam, D. (2017). Modified value-added intellectual coefficient (MVAIC) and traditional financial performance of Indonesian biggest companies. International Journal of Learning and Intellectual Capital, 14(3): 207-219.
  • Vishnu, S. and Gupta, V. K. (2014). Intellectual capital and performance of pharmaceutical firms in India. Journal of Intellectual Capital, 15(1): 83-99.
  • Wooldridge, J. M. (2002). Econometric analysis of cross section and panel data. United States: The MIT Press.
  • Xu, J. and Li, J. (2019). The impact of intellectual capital on SMEs’ performance in China Empirical evidence from non-high-tech vs. high-tech SMEs. Journal of Intellectual Capital, 20(4): 488-509.
  • Xu, J. and Li, J. (2020). The interrelationship between intellectual capital and firm performance: evidence from China’s manufacturing sector. Journal of Intellectual Capital, Vol: ahead-of-print, https://doi.org/10.1108/JIC-08-2019-0189
  • Xu, J. and Wang, B. (2019). Intellectual capital performance of the textile industry in emerging markets: A comparison with China and South Korea. Sustainability, 11(8): 1-16.
  • Yao, H., Haris, M., Tariq, G., Javaid, H. M. and Khan, M. A. S. (2019). Intellectual capital, profitability, and productivity: Evidence from Pakistani financial institutions. Sustainability, 11: 1-30.
  • Zeghal, D. and Maaloul, A. (2010) Analysing value added as an indicator of intellectual capital and its consequences on company performance. Journal of Intellectual Capital, 11(1): 39-60.
  • Yılmaz, İ. and Acar, G. (2018). The effects of intellectual capital on financial performance and market value: Evidence from Turkey. Eurasian Journal of Business and Economics, 11(21): 117-133.

Entelektüel sermayenin firma performansı ve değeri üzerindeki etkisi: Borsa İstanbul’da listelenen firmalar için MVAIC uygulaması

Year 2022, Volume: 8 Issue: 1, 47 - 60, 18.02.2022

Aslı Aybars Mehtap Öner

https://doi.org/10.30855/gjeb.2022.8.1.004

Abstract

Bu çalışma ile entelektüel sermaye ve bileşenlerinin Türk imalat sanayinde faaliyet gösteren halka açık firmaların finansal performansı ve firma değeri üzerindeki etkisini ortaya koymak hedeflenmiştir. Bu amaçla Borsa İstanbul’da (BIST) 2009 - 2019 yılları arasında işlem gören 75 halka açık firmaya ait veriler, Kamuyu Aydınlatma Platformu ve Thomsen Reuters veri tabanlarından alınarak toplam 825 gözleme dayanan panel veri analizi gerçekleştirilmiştir. Entelektüel sermaye etkinliğini ölçmek için Değiştirilmiş Entelektüel Katma Değer Katsayısı (MVAIC) kullanılırken, bileşenlerinin etkinliğini tespit etmek için Beşerî Sermaye Etkinliği (HCE), Yapısal Sermaye Etkinliği (SCE), İlişkisel Sermaye Etkinliği (RCE) ve Kullanılan Sermaye Etkinliği (CEE) kullanılmıştır. Çalışmanın bulguları entelektüel sermayenin seçili performans göstergeleri üzerinde anlamlı bir etkisinin olmadığını göstermiştir. Entelektüel sermaye bileşenleri için yapılan ek analiz sonucuna göre ise sadece Kullanılan Sermaye Etkinliğinin firma karlılığı ve değeri üzerinde pozitif etkisinin olduğu tespit edilmiştir.

Keywords

entelektüel sermaye MVAIC firma performansı firma değeri panel veri analizi

References

  • Baltagi, B. H. (2013). Econometric analysis of panel data. England: John Wiley & Sons.
  • Bontis, N. (2001). Assessing knowledge assets: A review of the models used to measure intellectual capital. International Journal of Management Reviews, 3: 41-60.
  • Bontis, N., Keow, W. C. C. and Richardson, S. (2000). Intellectual capital and business performance in Malaysian industries. Journal of Intellectual Capital, 1(1): 85-100.
  • Bontis, N., Janosevic, S. and Dzenopoljac, V. (2015). Intellectual capital in Serbia’s hotel industry. International Journal of Contemporary Hospitality Management, 27: 1365–1384.
  • Buallay, A. (2019). Intellectual capital and performance of Islamic and conventional banking: Empirical evidence from Gulf Cooperative Council Countries. Journal of Management Development, 38(7): 518-537.
  • Buallay, A., Cummings, R. and Hamdan, A. (2019). Intellectual capital efficiency and bank’s performance: A comparative study after the global financial crisis. Pacific Accounting Review, 31(4): 672-694.
  • Clarke, M., Seng, D. and Whiting, R. H. (2011). Intellectual capital and firm performance in Australia. Journal of Intellectual Capital, 12(4): 505-530.
  • Edvinsson, L. and Malone, M. (1997). Intellectual capital: Realizing your company’s true value by finding its hidden Roots. New York: Harper Collins.
  • Johnson, W. (1999). Integrative taxonomy of intellectual capital: Measuring the stock and flow of intellectual capital components in the firm. International Journal of Technology Management, 18: 562-575.
  • Joshi, M., Cahill, D., Sidhu, J. and Kansal, M. (2013). Intellectual capital and financial performance: an evaluation of the Australian financial sector. Journal of Intellectual Capital, 14(2): 264–285.
  • Mohammad, H. S. and Bujang, I. (2019). Performance of Malaysian financial firms: An intellectual capital perspective using MVAIC model. Asian Economic and Financial Review, 9(7): 752-765.
  • Nazari, J. A. (2010). An investigation of the relationship between the Intellectual Capital components and firm’s financial performance. Unpublished PhD NR69495, University of Calgary, Calgary.
  • Nazari, J. A. and Herremans, I. M. (2007). Extended VAIC model: Measuring intellectual capital components. Journal of Intellectual Capital, 8(4): 595-609.
  • Nimtrakoon, S. (2015). ‘The relationship between intellectual capital, firms’ market value and financial performance: Empirical evidence from the ASEAN. Journal of Intellectual Capital, 16(3): 587-618.
  • Organisation for Economic Co-operation and Development - OECD (2007). Policy brief: Creating value from intellectual assets. Paris.
  • Petty, R. and Guthrie, J. (2000). Intellectual capital literature review: measurement, reporting and management. Journal of Intellectual Capital, 1(2): 155-176.
  • Restuti, M. D., Diyanty, V. and Shauki E. R. (2018). Intellectual capital and firm performance: Applying a modified nalue-added coefficient. Advances in Economics, Business and Management Research, 89: 114-123.
  • Roos, G. and Roos, J. (1997). Measuring your company’s intellectual performance. Long Range Planning, Special Issue on Intellectual Capital 30(3): 413-426.
  • Soetanto, T. and Liem, P. F. (2019). Intellectual capital in Indonesia: dynamic panel approach. Journal of Asia Business Studies, 13(2): 240-262.
  • Stewart, T. A. (1997). Intellectual capital: The new wealth of organizations. New York: Currency Doubleday.
  • Sveiby, K. E. (1997). The new organizational wealth: Managing and measuring knowledge-based assets. San Francisco: Berrett-Koehler.
  • Tatoğlu, F. Y. (2020). Panel veri ekonometrisi stata uygulamalı. İstanbul: Beta Yayınları.
  • Tiwari, R. (2020). Nexus between intellectual capital and profitability with interaction effects: panel data evidence from the Indian healthcare industry. Journal of Intellectual Capital, Vol. ahead-of-print. https://doi.org/10.1108/JIC-05-2020-0137.
  • Tran, D. B. and Vo, D. H. (2018). Should bankers be concerned with Intellectual capital? A study of the Thai banking sector. Journal of Intellectual Capital, 19(5): 897-914.
  • Ulum, I., Ghozali, I. and Purwanto, A. (2014). Intellectual capital performance of Indonesian banking sector: a modified VAIC (M-VAIC) perspective. Asian Journal of Finance & Accounting, 6(2): 103-123.
  • Ulum, I., Kharismawati, N. and Syam, D. (2017). Modified value-added intellectual coefficient (MVAIC) and traditional financial performance of Indonesian biggest companies. International Journal of Learning and Intellectual Capital, 14(3): 207-219.
  • Vishnu, S. and Gupta, V. K. (2014). Intellectual capital and performance of pharmaceutical firms in India. Journal of Intellectual Capital, 15(1): 83-99.
  • Wooldridge, J. M. (2002). Econometric analysis of cross section and panel data. United States: The MIT Press.
  • Xu, J. and Li, J. (2019). The impact of intellectual capital on SMEs’ performance in China Empirical evidence from non-high-tech vs. high-tech SMEs. Journal of Intellectual Capital, 20(4): 488-509.
  • Xu, J. and Li, J. (2020). The interrelationship between intellectual capital and firm performance: evidence from China’s manufacturing sector. Journal of Intellectual Capital, Vol: ahead-of-print, https://doi.org/10.1108/JIC-08-2019-0189
  • Xu, J. and Wang, B. (2019). Intellectual capital performance of the textile industry in emerging markets: A comparison with China and South Korea. Sustainability, 11(8): 1-16.
  • Yao, H., Haris, M., Tariq, G., Javaid, H. M. and Khan, M. A. S. (2019). Intellectual capital, profitability, and productivity: Evidence from Pakistani financial institutions. Sustainability, 11: 1-30.
  • Zeghal, D. and Maaloul, A. (2010) Analysing value added as an indicator of intellectual capital and its consequences on company performance. Journal of Intellectual Capital, 11(1): 39-60.
  • Yılmaz, İ. and Acar, G. (2018). The effects of intellectual capital on financial performance and market value: Evidence from Turkey. Eurasian Journal of Business and Economics, 11(21): 117-133.
There are 34 citations in total.

Details

Primary Language English
Subjects Finance, Business Administration
Journal Section Articles
Authors

Aslı Aybars 0000-0002-7899-2367

Mehtap Öner 0000-0001-7527-5875

Early Pub Date February 17, 2022
Publication Date February 18, 2022
Published in Issue Year 2022 Volume: 8 Issue: 1

Cite

APA Aybars, A., & Öner, M. (2022). The impact of intellectual capital on firm performance and value: An application of MVAIC on firms listed in Borsa Istanbul. Gazi İktisat Ve İşletme Dergisi, 8(1), 47-60. https://doi.org/10.30855/gjeb.2022.8.1.004
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