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

Author

Listed:
  • Adel Necib
  • Amira Feidi
  • Anis Jarboui

Abstract

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.

Suggested Citation

  • Adel Necib & Amira Feidi & Anis Jarboui, 2025. "The Impact of Business Risk, Intellectual Capital, and Institutional Ownership on the Value of the Firm," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 3-19.
    • Handle: RePEc:ers:ijebaa:v:xiii:y:2025:i:1:p:3-19
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    References listed on IDEAS

    as
    1. Adel Necib, 2023. "The Effects of Executives’ Agility Decision-Making in COVID-19 Pandemic Period on Companies’ Performance," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 13(2), pages 42-64.
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    5. Gratiela Georgiana Noja & Eleftherios Thalassinos & Mirela Cristea & Irina Maria Grecu, 2021. "The Interplay between Board Characteristics, Financial Performance, and Risk Management Disclosure in the Financial Services Sector: New Empirical Evidence from Europe," JRFM, MDPI, vol. 14(2), pages 1-20, February.
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    More about this item

    Keywords

    FTSE 100; board diversity; intellectual capital; business risk; institutional ownership; firm value.;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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