Intellectual Capital And Firm´s Performance: A Case Of Textile Companies
Author: Madeeha Mushtaq

The main objective of the research is to pinpoint the influence of intellectual capital components and intellectual capital index on firm performance. Human capital efficiency (HCE), structural capital efficiency (SCE), and capital employed efficiency (CEE) are the intellectual capital components and the sum of these entire components is the index of intellectual capital (VAIC). The firm performance is measured by return on assets (ROA), asset turnover (ATO), and price to book value (PBV). The panel data from 25 companies for 11 years (2010-2020) has been used to test the impact of intellectual capital components and index on firm performance. The generalized method of moments has been used to test the hypothesis. The results are showing that the intellectual capital index (VAIC) has a positive influence on firm performance measured by return on assets (ROA), assets turnover (ATO), and price to book value (PBV). However, HCE and CEE have a positive influence on return on assets and assets turn over and in the case of firm performance measured by PBV only CEE has its positive impact on firm performance and the remaining components are showing no influence on firm performance. The study is also beneficial for policy makers and management to enhance the firm performance by making the strategies for intellectual capital. The limitations and future direction of the study have also been discussed in detail Supervisor: Dr. Nadeem Ahmed Khan Co-Supervisor: Dr. Saud Ahmed Khan

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Supervisor: Nadeem Ahmed Khan
Cosupervisor: Saud Ahmad Khan

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