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Measuring Firm-Specific Organizational Capital and its Impact on Value and Productivity: Evidence From Japan

Author

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  • Pablo Gonzalo Ramirez

    (Department of Industrial Engineering & Management, Tokyo Institute of Technology, 2-12-1, W9-75, Ookayama, Meguro-ku, Tokyo 152-8552, Japan)

  • Toyohiko Hachiya

    (Department of Industrial Engineering & Management, Tokyo Institute of Technology, 2-12-1, W9-75, Ookayama, Meguro-ku, Tokyo 152-8552, Japan)

Abstract

In this study we used Japanese firm-level data in order to explore the productive impact of organizational capital by isolating the effect of other intangibles like R&D, brand, human and social capital. Fixed-effect and random-effect panel methodology are proposed to assess specific-organizational capital at firm level. Our results suggest that in monetary terms the value of firm-specific organizational capital stock is significant when compared to traditional assets. Findings suggest that firms building up higher stocks of organizational capital not only increase their productivity but also their value.

Suggested Citation

  • Pablo Gonzalo Ramirez & Toyohiko Hachiya, 2006. "Measuring Firm-Specific Organizational Capital and its Impact on Value and Productivity: Evidence From Japan," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 9(04), pages 549-574.
    • Handle: RePEc:wsi:rpbfmp:v:09:y:2006:i:04:n:s0219091506000860
    DOI: 10.1142/S0219091506000860
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    References listed on IDEAS

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    1. Hall, Bronwyn H., 1999. "Innovation and Market Value," Department of Economics, Working Paper Series qt9f31v1rw, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    2. Hall, B.H., 1999. "Innovation and Market Value," Economics Papers 1999-w3, Economics Group, Nuffield College, University of Oxford.
    3. Dieter Sadowski & Oliver Ludewig, 2003. "Organisational Capital: The Power of an Economic Metaphor: Organisational Capital in German Establishments," IAAEG Discussion Papers until 2011 200302, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    4. Baruch Lev & Suresh Radhakrishnan, 2003. "The Measurement of Firm-Specific Organization Capital," NBER Working Papers 9581, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Yasean A. Tahat & Ahmed H. Ahmed & Mohammad M. Alhadab, 2018. "The impact of intangibles on firms’ financial and market performance: UK evidence," Review of Quantitative Finance and Accounting, Springer, vol. 50(4), pages 1147-1168, May.
    2. Re-Jin Guo & Nan Zhou, 2016. "Innovation capability and post-IPO performance," Review of Quantitative Finance and Accounting, Springer, vol. 46(2), pages 335-357, February.

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    More about this item

    Keywords

    Intangibles; firm-specific organizational capital; productivity; market value;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services
    • G3 - Financial Economics - - Corporate Finance and Governance

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