Abstract:
This study examines the
interaction effect of managerial and institutional ownership
on the association between intellectual capital and firm
value enhancement. The dependent variable in this study is
Tobin’s Q which is measured as (Mkt value per share / Book
value per share). Intellectual capital is measured by VAIC
using Pulic’s formula. VAIC is constructed through three
constituents (Human capital efficiency, Structured capital
efficiency, and Capital employed efficiency). Executives and
institutional possession are the moderating variables
followed by control variables.
The results of the study
indicated that VAIC positively enhances firm value.
Institutional ownership does not affect firm performance and
managerial ownership has a negative impact on firm value
enhancement. Later the study examines three components impact
individually. The HCE and SCE indicated no significant impact
on firm performance while CEE indicated positive impact on
firm value enhancement. Finally, the study examines the main
theme. The analysis of moderating role of managerial and
institutional ownership indicated some meaningful results.
Managerial ownership negatively moderates the link between
firm performance and intellectual capital. Meanwhile,
institutional possession illustrated no significant role in
influencing the association of VAIC and firm performance.
A
sample of 200 listed manufacturing companies on Stock
Exchange of Pakistan (PSX) was considered for analysis for
time period of eight years from 2016-2023.
|