EconPapers    
Economics at your fingertips  
 

Intellectual Capital, Financial Performance and Companies’ Sustainable Growth: Evidence from the Korean Manufacturing Industry

Jian Xu and Binghan Wang
Additional contact information
Jian Xu: Department of Management, Qingdao Agricultural University, Qingdao 266109, China
Binghan Wang: Business School, Lincoln University, Lincoln 7647, New Zealand

Sustainability, 2018, vol. 10, issue 12, 1-15

Abstract: Intellectual capital (IC) is considered to be a wealth generator and driver of financial performance thus creating competitive advantage and sustainability in business. This paper empirically investigates the impact of IC on financial performance and sustainable growth in the Korean manufacturing industry. Multiple regression models are applied with data collected from 390 manufacturing companies listed on the Korean Stock Exchange during 2012–2016. The results of the analysis show that IC has a positive impact on financial performance and companies’ sustainable growth. In addition, companies’ performance and sustainable growth are positively related to physical capital, human capital (HC), and relational capital (RC). RC is found to be the most influencing factor. Finally, innovative capital captures additional information on structural capital (SC) which negatively affects the performance of Korean manufacturing companies. The results extend the understanding of IC in creating corporate value and building sustainable advantages in emerging economies.

Keywords: intellectual capital; financial performance; sustainable growth; manufacturing industry (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (51)

Downloads: (external link)
https://www.mdpi.com/2071-1050/10/12/4651/pdf (application/pdf)
https://www.mdpi.com/2071-1050/10/12/4651/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:10:y:2018:i:12:p:4651-:d:188574

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager (indexing@mdpi.com).

 
Page updated 2024-12-28
Handle: RePEc:gam:jsusta:v:10:y:2018:i:12:p:4651-:d:188574