The impact of the intellectual capital components on firm’s performance in emerging markets

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Abstract

The objective of this research is to review, analyse, and provide empirical evidence about the impact of the intellectual capital (IC) characteristics on the firm performance on listed 26 companies in Tunisian Stock Exchange for the years 2010–2019. 260 companies were taken as a sample of this research using the purposive sampling method. The efficiency of intellectual capital was measured using the value added intellectual coefficient (VAIC) method developed by Pulic (2000). The research method used was multiple linear regression analysis. Our empirical analysis substantiates the fundamental role of IC components in improving the financial and stock market performance of listed Tunisian companies. The results obtained on the human capital efficiency variable contribute to improving the market of Tunisian listed companies and confirm the role attributed to human capital in the knowledge economy and even the basic hypothesis of the VAIC method. Investors do not place any importance on the following variables: structural capital, human capital and the efficiency of structural capital during market valuation. Future research is suggested to use cross-country companies as the sample.

Keywords: Human Capital, Structural Capital, Efficiency, Financial Performance, Stock Market Performance

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: G210, M45, M14

Received: 02.01.2021
Accepted: 22.03.2021
Published online: 24.03.2021

How to cite this paper: Chaabane, N. (2021). The impact of the intellectual capital components on firm’s performance in emerging markets. Risk Governance and Control: Financial Markets & Institutions, 11(2), 8–17. https://doi.org/10.22495/rgcv11i2p1