IDEAS home Printed from https://ideas.repec.org/a/ris/ibajmb/0001.html
   My bibliography  Save this article

A study of causality between disintegrated intellectual capital and firm performance

Author

Listed:
  • Ur Rehman, Mujeeb

    (Wuhan University of Technology)

  • Ahmed, Khalid

    (Sukkur Institute of Business Administration)

  • Qazi, Ahmer Qasim

    (Pakistan Institute of Development Economics (PIDE))

Abstract

This paper aims to provide the new and unique way to analyze the factors which cause Intellectual Capital (IC) and its impacts on firm’s performance. The data is obtained from 41 Chinese companies listen in Shanghai Stock Exchange Company from 2005 to 2011The empirical technique adopted to investigate this research is also unprecedented. This study uses Vector Auto-Regression (VAR) model on panel data structure to analyze the relationship between disaggregate intellectual resources and its impacts on the profitability at the firm level. The diverse estimation technique is used which covers both cross-sectional and time behavior of data. The variety of empirically tools; unit root, co-integration and granger causality tests are applied respectively to validate the hypothesis. The overall results confirm the hypothesis whereas, in the light of the results of the descriptive statistics, the low value of SCE shows that the Chinese high-tech companies are not investing enough as compared to the other components of intellectual capital as compare to HCE and CEE. The results from the short run causality test based on VECM signify bidirectional causality between ROE and HCE and unidirectional causality from HCE to SCE and CEE to SCE. The results of the data analysis provide useful implications for the theory of intellectual capital. The results indicate that the presence of intellectual capital causes a firm to attain better performance.

Suggested Citation

  • Ur Rehman, Mujeeb & Ahmed, Khalid & Qazi, Ahmer Qasim, 2014. "A study of causality between disintegrated intellectual capital and firm performance," Sukkur IBA Journal of Management and Business, Sukkur IBA University, vol. 1(1), pages 1-19, October.
  • Handle: RePEc:ris:ibajmb:0001
    as

    Download full text from publisher

    File URL: http://journal.iba-suk.edu.pk:8089/SIBAJournals/index.php/sijmb/article/view/74
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Peter Pedroni, 1999. "Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Department of Economics Working Papers 2000-02, Department of Economics, Williams College.
    2. Leire Alcaniz & Fernando Gomez-Bezares & Robin Roslender, 2011. "Theoretical perspectives on intellectual capital: A backward look and a proposal for going forward," Accounting Forum, Taylor & Francis Journals, vol. 35(2), pages 104-117, June.
    3. V. Murale & Dr. Clement Sudhahar & Dr. Ashrafali, 2010. "Impact of Intellectual Capital on Firm Value (A Panel Data Analysis of Indian IT Firms)," Journal of Commerce and Trade, Society for Advanced Management Studies, vol. 5(1), pages 99-106, April.
    4. repec:bla:obuest:v:61:y:1999:i:0:p:653-70 is not listed on IDEAS
    5. Lu, Wen-Min, 2012. "Intellectual capital and university performance in Taiwan," Economic Modelling, Elsevier, vol. 29(4), pages 1081-1089.
    6. Peter Pedroni, 1999. "Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 653-670, November.
    7. Alcaniz, Leire & Gomez-Bezares, Fernando & Roslender, Robin, 2011. "Theoretical perspectives on intellectual capital: A backward look and a proposal for going forward," Accounting forum, Elsevier, vol. 35(2), pages 104-117.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wasim ul Rehman & Faryal Jalil & Omur Saltik & Suleyman Degirmen & Mustafa Bekmezci, 2024. "Leveraging Strategic Innovation and Process Capabilities for Intellectual Capital Initiative Performance of Higher Education Institutes (HEIs): A Knowledge-Based Perspective," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 4161-4202, March.
    2. Ranjan Aneja & Umer J. Banday & Tanzeem Hasnat & Mustafa Koçoglu, 2017. "Renewable and Non-renewable Energy Consumption and Economic Growth: Empirical Evidence from Panel Error Correction Model," Jindal Journal of Business Research, , vol. 6(1), pages 76-85, June.
    3. Neil A. Wilmot & Ariuna Taivan, 2021. "Examining the Impact of Financial Development on Energy Production in Emerging Economies," JRFM, MDPI, vol. 14(2), pages 1-17, February.
    4. Al-mulali, Usama & Fereidouni, Hassan Gholipour & Lee, Janice Y.M., 2014. "Electricity consumption from renewable and non-renewable sources and economic growth: Evidence from Latin American countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 290-298.
    5. Francesca Iorio & Stefano Fachin, 2014. "Savings and investments in the OECD: a panel cointegration study with a new bootstrap test," Empirical Economics, Springer, vol. 46(4), pages 1271-1300, June.
    6. Marius-Răzvan Surugiu & Cristina-Raluca Mazilescu & Camelia Surugiu, 2021. "Analysis of the Tax Compliance in the EU: VECM and SEM," Mathematics, MDPI, vol. 9(17), pages 1-19, September.
    7. Tongurai, Jittima & Vithessonthi, Chaiporn, 2018. "The impact of the banking sector on economic structure and growth," International Review of Financial Analysis, Elsevier, vol. 56(C), pages 193-207.
    8. Tajul Masron & Mduduzi Biyase & Talent Zwane & Thomas Udimal & Frederich Kirsten, 2023. "Ecological footprint and population health outcomes: an analysis of E7 countries," Economics Working Papers edwrg-07-2023, College of Business and Economics, University of Johannesburg, South Africa, revised 2023.
    9. Bernstein, Ronald & Madlener, Reinhard, 2011. "Responsiveness of Residential Electricity Demand in OECD Countries: A Panel Cointegation and Causality Analysis," FCN Working Papers 8/2011, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    10. Hosan, Shahadat & Rahman, Md Matiar & Karmaker, Shamal Chandra & Saha, Bidyut Baran, 2023. "Energy subsidies and energy technology innovation: Policies for polygeneration systems diffusion," Energy, Elsevier, vol. 267(C).
    11. Inglesi-Lotz, Roula, 2016. "The impact of renewable energy consumption to economic growth: A panel data application," Energy Economics, Elsevier, vol. 53(C), pages 58-63.
    12. Tang, Kin-Boon, 2011. "The precise form of uncovered interest parity: A heterogeneous panel application in ASEAN-5 countries," Economic Modelling, Elsevier, vol. 28(1-2), pages 568-573, January.
    13. Mohammad Mafizur Rahman & Nahid Sultana, 2024. "Nexus of Human Development and Environmental Quality in Low-Income and Developing Countries: Do Renewable Energy and Good Governance Matter?," Sustainability, MDPI, vol. 16(13), pages 1-18, June.
    14. George Halkos & Iacovos Psarianos, 2016. "Exploring the effect of including the environment in the neoclassical growth model," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(3), pages 339-358, July.
    15. Adem Y. Elveren, 2014. "Women's labour force participation and pay inequality: evidence from panel cointegration," Applied Economics Letters, Taylor & Francis Journals, vol. 21(12), pages 862-865, August.
    16. Dierk Herzer, 2024. "A panel data analysis of the long-run effect of environmental taxes on R&D expenditures at the macro-level," Economics Bulletin, AccessEcon, vol. 44(3), pages 1169-1180.
    17. Apergis, Nicholas & Payne, James E., 2011. "The renewable energy consumption-growth nexus in Central America," Applied Energy, Elsevier, vol. 88(1), pages 343-347, January.
    18. Polemis, Michael & Tselekounis, Markos, 2019. "Does deregulation drive innovation intensity? Lessons learned from the OECD telecommunications sector," MPRA Paper 92770, University Library of Munich, Germany.
    19. Saidi Kais & Ben Mbarek Mounir, 2017. "Causal interactions between environmental degradation, renewable energy, nuclear energy and real GDP: a dynamic panel data approach," Environment Systems and Decisions, Springer, vol. 37(1), pages 51-67, March.
    20. Yao, Shujie & Wei, Kailei, 2007. "Economic growth in the presence of FDI: The perspective of newly industrialising economies," Journal of Comparative Economics, Elsevier, vol. 35(1), pages 211-234, March.

    More about this item

    Keywords

    Firm; Performance; Intellectual; Capital; Vector; Autoregression;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:ibajmb:0001. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Irfan Ali Menon (email available below). General contact details of provider: https://edirc.repec.org/data/sibaspk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.