The Impact of Business Risk, Intellectual Capital, and Institutional Ownership on the Value of the Firm

Purpose: This study aims to investigate how the diversity of backgrounds affects the relationship between intellectual capital, business risk, institutional actionnaire, and company value. Design/Methodology/Approach: The team was tasked with scrutinizing companies in the real estate, property, and construction sectors that were listed on the London Stock Exchange (FTSE100) between 2020 and 2023. A purposive approach allowed for the final selection of 292 businesses. The hypothesis was tested using multiple regression analysis. Findings: The outcome suggests that intellectual capital and commercial risk have a positive impact on an enterprise's value, whereas institutional investors have a negative impact. Furthermore, the study shows that the intellectual and institutional capital of the male and female members of the Council of Administration (CoA) do not significantly affect the enterprise value. Even if both have a positive effect on the commercial risk in the company, the impact of a BoD dominated by men is greater than that of a BoD dominated by women. Practical Implications: According to findings there is no discernible difference between companies headed by male-dominated directors and those led by female-dominated directors regarding the influence of intellectual capital on company value. Originality value: The findings suggest that a higher share of intellectual capital tends to raise the firm's worth.