Intellectual capital on listed agricultural firms' performance in Malaysia

Abstract

This study investigates the intellectual capital on agricultural firms’ performance listed on the Malaysian Stock Exchange during 2003–2009. It is also our intent to explore whether firm size and corporate governance characteristics, in the form of control variables, influences a firm’s performance. Pulic’s value added intellectual coefficient (VAIC) methodology is used as the efficiency measure of intellectual capital, and panel regressions are used to examine the relationship between intellectual capital and a firm’s performance. Panel regressions’ results showed that a firm’s intellectual capital has a positive impact on financial and productivity performances. However, the association between intellectual capital and economic performance is insignificant. The results also indicate that the capital employed and structural capitals are major determinants of financial and productivity performances. Board features, however, fail to show a consistency between themselves and firm’s performance across any of the three measurements included in the current study.