Version 1
: Received: 29 January 2019 / Approved: 31 January 2019 / Online: 31 January 2019 (06:44:01 CET)
How to cite:
Ahmed, A.; Khurshid, M.K.; Yousaf, M.U. Impact of Intellectual Capital on Firm Value: The Moderating Role of Managerial Ownership. Preprints2019, 2019010318. https://doi.org/10.20944/preprints201901.0318.v1.
Ahmed, A.; Khurshid, M.K.; Yousaf, M.U. Impact of Intellectual Capital on Firm Value: The Moderating Role of Managerial Ownership. Preprints 2019, 2019010318. https://doi.org/10.20944/preprints201901.0318.v1.
Cite as:
Ahmed, A.; Khurshid, M.K.; Yousaf, M.U. Impact of Intellectual Capital on Firm Value: The Moderating Role of Managerial Ownership. Preprints2019, 2019010318. https://doi.org/10.20944/preprints201901.0318.v1.
Ahmed, A.; Khurshid, M.K.; Yousaf, M.U. Impact of Intellectual Capital on Firm Value: The Moderating Role of Managerial Ownership. Preprints 2019, 2019010318. https://doi.org/10.20944/preprints201901.0318.v1.
Abstract
Rapidly changing dynamics of globalization and increasing market competition are causing the companies all around the world confronting several new challenges and opportunities. To be competitive and successful apart from relative importance of physical resources, companies must adapt modern strategies and policies regarding market flexibility and development. The purpose of this study is to empirically investigate the relationship between intellectual capital and firm value. Furthermore, the moderating role of managerial ownership has been evaluated with the help of regression analysis. The sample included the panel data taken from non-financial firms listed on Pakistan stock exchange (PSX) covering the period 2010-2015. A sample of 79 firms out of 384 firms have been selected with the help of systematic sampling technique. VAIC (Value Added Intellectual Coefficient) model has been used for the calculation of intellectual capital. Tobin's Q has been taken as a measure of firm value. Managerial ownership has been tested as moderator. Based on data analysis, it is concluded that the relationship between intellectual capital and firm value is positively significant. It is also concluded that managerial ownership moderates the relationship between intellectual capital and firm value negatively.
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
