The Effect Of Intellectual Capital, Intellectual Capital Components, And Firm Performance On Dividend Distribution Policy And Model Selection

Zeynep Ozturk

Fiscaoeconomia, 2023, issue 3

Abstract: With the advancement of technology and the globalization of the world, alongside tangible assets, intangible assets representing knowledge, providing sustainability and competitive advantage to companies, have drawn significant attention. In order for companies to remain sustainable, maximizing profitability and having a functional dividend policy are crucial. This study aims to investigate the impact of intellectual capital calculated through Value Added Intellectual Coefficient (VAIC), as well as the elements of intellectual capital, on dividend policy of firms. The study also explores the potential influence of firm performance indicators such as Return on Assets (ROA), firm size, stock current price, and leverage ratio on dividend policy, utilizing two distinct Panel Data models. The model is constructed using data from 11 companies listed in the BIST 25 Dividend Index, which includes stocks highlighted for both dividend distribution and liquidity operating in the manufacturing sector. The data covers the period from 2019 to 2021. The selection of the most appropriate model is based on information criteria, and model analysis is carried out through Panel Data modeling. Results from Model 1 suggest that intellectual capital does not significantly affect dividend distribution ratios. On the other hand, Model 2 concludes that customer capital has an impact on dividend distribution ratios. In both models, similar findings are observed regarding firm performance, firm size, stock current price, and leverage ratio variables. The best fit for the data is achieved in Model 2.

Keywords: Value Added Intellectual Capital Coefficient (VAIC); Intellectual Capital; Dividend Policy; Firm Performance Measures; Panel Data Analysis. (search for similar items in EconPapers)
JEL-codes: F60 G30 L60 O33 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:fis:journl:230329

DOI: 10.25295/fsecon.1330289

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