IDEAS home Printed from https://ideas.repec.org/a/ids/ijlica/v13y2016i2-3p250-272.html
   My bibliography  Save this article

Testing the relationship between intellectual capital and a firm's performance: an empirical investigation regarding financial industries of Pakistan

Author

Listed:
  • Muhammad Ahmad
  • Naveed Ahmed

Abstract

The purpose of this study is to investigate the intellectual capital (IC)'s performance and its impact on the financial performance of 78 listed financial industries of Pakistan from 2008 to 2013. VAIC™ model is applied to measure the efficiency of IC and its components. The empirical results obtained from the study clearly indicate that IC is an important determinant of the financial efficiency of the Pakistani financial firms. However, when IC is divided into parts, the performance of human capital plays a significant role. As a whole, all companies have relatively higher human capital performance than structural and tangible capital efficiencies. This study makes a valuable addition in the literature by selecting all the financial sectors of Pakistan (banks, life and non-life insurance firms, modaraba firms, mutual fund firms and leasing firms) to investigate the intellectual capital-performance relationship as the previous researchers focused only on one or two financial sectors.

Suggested Citation

  • Muhammad Ahmad & Naveed Ahmed, 2016. "Testing the relationship between intellectual capital and a firm's performance: an empirical investigation regarding financial industries of Pakistan," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 13(2/3), pages 250-272.
    • Handle: RePEc:ids:ijlica:v:13:y:2016:i:2/3:p:250-272
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=75691
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad Anwar & Sher Zaman Khan & Najib Ullah Khan, 2018. "Intellectual Capital, Entrepreneurial Strategy and New Ventures Performance: Mediating Role of Competitive Advantage," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 10(1), pages 63-94, March.
    2. Yuqiu Lu & Guowei Li & Zhe Luo & Muhammad Anwar & Yunju Zhang, 2021. "Does Intellectual Capital Spur Sustainable Competitive Advantage and Sustainable Growth?: A Study of Chinese and Pakistani Firms," SAGE Open, , vol. 11(1), pages 21582440219, February.
    3. Syed Mir Muhammad Shah & Umair Ahmed & Abdussalaam Iyanda Ismail & Soleman Mozammel, 2021. "Going Intellectually Green: Exploring the Nexus between Green Intellectual Capital, Environmental Responsibility, and Environmental Concern towards Environmental Performance," Sustainability, MDPI, vol. 13(11), pages 1-22, June.
    4. Hongxing Yao & Muhammad Haris & Gulzara Tariq & Hafiz Mustansar Javaid & Muhammad Aamir Shafique Khan, 2019. "Intellectual Capital, Profitability, and Productivity: Evidence from Pakistani Financial Institutions," Sustainability, MDPI, vol. 11(14), pages 1-30, July.
    5. Muhammad Haris & HongXing Yao & Gulzara Tariq & Ali Malik & Hafiz Mustansar Javaid, 2019. "Intellectual Capital Performance and Profitability of Banks: Evidence from Pakistan," JRFM, MDPI, vol. 12(2), pages 1-26, April.
    6. Atta Ullah & Chen Pinglu & Saif Ullah & Ningyu Qian & Mubasher Zaman, 2023. "Impact of intellectual capital efficiency on financial stability in banks: Insights from an emerging economy," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1858-1871, April.
    7. Umer Ayub & Abdul Rashid Kausar & Mubashar Majeed Qadri, 2017. "Linking Human Capital and Organisational Innovative Capabilities of Financial Institutions: Evidence from a Developing Country of South Asia," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 1-23, December.
    8. Nadezhda N. Pokrovskaia & Olga N. Korableva & Lucio Cappelli & Denis A. Fedorov, 2021. "Digital Regulation of Intellectual Capital for Open Innovation: Industries’ Expert Assessments of Tacit Knowledge for Controlling and Networking Outcome," Future Internet, MDPI, vol. 13(2), pages 1-28, February.
    9. Muhammad Ahmad & Rohani Mohd Rus, 2021. "Intellectual Capital and Firm Performance across Pakistani Industries," Business and Economic Research, Macrothink Institute, vol. 11(4), pages 56-77, December.
    10. Chao Hung Wang & Wei‐Jr Juo, 2021. "An environmental policy of green intellectual capital: Green innovation strategy for performance sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3241-3254, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijlica:v:13:y:2016:i:2/3:p:250-272. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=86 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.