The Importance of Intellectual Capital for Firm Performance: Evidence from Australia
Christopher Gan and
Australian Accounting Review, 2018, vol. 28, issue 3, 334-344
This study investigates the dynamic relationship between intellectual capital (IC) and firm performance (FP) through system generalised methods of moments, when previous studies produced divergent results based on static OLS or fixed‐effects estimations. Based on 571 listed firms in Australia for the period of 2005–2014 (5518 firm‐years) this study reveals that IC efficiency is positively significant with ROA and ROE – which endorses resource‐based theory. Further analysis shows that human capital, structural capital and physical capital are also significant and confidently endorse resource‐dependency and organisation‐learning theories. The findings of this study are vital for stakeholders such as management, shareholders and potential investors to understand the role of IC for FP. Moreover, the findings are particularly important for policy‐setters to highlight the importance of IC and develop a systematic framework for IC disclosure. This study also opens new avenues for future research to consider the dynamic nature of the IC–FP relationship and account for endogeneity.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:ausact:v:28:y:2018:i:3:p:334-344
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1035-6908
Access Statistics for this article
Australian Accounting Review is currently edited by Linda M. English
More articles in Australian Accounting Review from CPA Australia
Bibliographic data for series maintained by Wiley Content Delivery ().