Open AccessTHE IMPACT OF INTELLECTUAL CAPITAL ON FIRM PERFORMANCE IN MALAYSIA
Author(s) -
Ahmad Ibn Ibrahimy,
Karthyainee Raman
Publication year - 2019
Publication title -
unimas review of accounting and finance
Language(s) - English
Resource type - Journals
ISSN - 2590-3543
DOI - 10.33736/uraf.1996.2019
Subject(s) - structural capital , intellectual capital , human capital , business , return on capital employed , regression analysis , outcome (game theory) , return on assets , capital (architecture) , econometrics , return on capital , accounting , economic capital , economics , finance , financial capital , capital formation , individual capital , microeconomics , statistics , economic growth , mathematics , archaeology , profitability index , history
The purpose of this study is to investigate the relationship between intellectual capital and performance of the companies listed in Bursa Malaysia. Using data drawn from 35 companies listed in Bursa Malaysia for the period of 2008 to 2017, regression model is constructed to examine the relationship between the components of intellectual capital, which are Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE) and Capital Employed Efficiency (CEE), and the performance of the companies measured using the variable Return on Assets (ROA). Data collected are analyzed using statistical software EViews and the outcome has been interpreted according to the statistical rule. As a result, the overall outcome can be concluded that Structural Capital Efficiency (SCE) and Capital Employed Efficiency (CEE) indicate positive relationship for influencing the performance of the companies listed in Bursa Malaysia. Additionally, Human Capital Efficiency (HCE) shows a negatively weak relationship with firm performance.