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The Impact of Intellectual Capital on Firm Value: Empirical Evidence From Vietnam

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  • Anh Huu Nguyen
  • Duong Thuy Doan

Abstract

The paper aims to investigate the impact of intellectual capital on firm value in the context of Vietnam. The research sample includes 61 manufacturing companies listed on Vietnam stock market for the period from 2013 to 2018. Three statistical methods approaches are employed to address econometric issues and to improve the accuracy of the regression coefficients include Ordinary Least Square (OLS), Random Effects Model (REM) and Fixed Effects Model (FEM). This research uses value-added intellectual capital (VAIC) to measure the intellectual capital of a firm. Value-added intellectual capital (VAIC) is considered as an effective measure by which a company uses material, financial, and intellectual capital to increase. The VAIC includes the sum of three components: Human Capital Efficiency (HCE), Structure Capital Efficiency (SCE) and Capital Employed Efficiency (CEE, including physical and financial capital). In this paper, firm value is measured by Tobin¡¯s Q ratio. Some control variables such as leverage, firm size, growth rate, and state capital are used in the regression model that pointed out the impact of intellectual capital on a firm value. The empirical results show a statistically significant positive impact of value-added intellectual capital (VAIC) on a firm¡¯s profitability. This evidence provides a new insight to managers on how to improve the value of manufacturing companies listed on Vietnam stock market.

Suggested Citation

  • Anh Huu Nguyen & Duong Thuy Doan, 2020. "The Impact of Intellectual Capital on Firm Value: Empirical Evidence From Vietnam," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 74-85, July.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:4:p:74-85
    DOI: 10.5430/ijfr.v11n4p74
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    References listed on IDEAS

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    2. Haiyun, Cui & Zhixiong, Huang & Yüksel, Serhat & Dinçer, Hasan, 2021. "Analysis of the innovation strategies for green supply chain management in the energy industry using the QFD-based hybrid interval valued intuitionistic fuzzy decision approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    3. Nazir, Sajid & Ali, Mahmood & Saeed, Munazza & Mubarik, Muhammad Shahzad & Jalil, Qasim, 2024. "Sustainable performance and disaster management in the oil and gas industry: An intellectual capital perspective," Resources Policy, Elsevier, vol. 92(C).

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