The Joint Forces of How to Live: Does Intellectual Capital Matter between Innovation and Financial Vulnerability?

Zeeshan Ahmed, Huan Qiu () and Yiwei Zhao
Additional contact information
Zeeshan Ahmed: Department of Accounting and Finance, Capital University of Science and Technology, Islamabad 44000, Pakistan
Huan Qiu: Else School of Management, Millsaps College, Jackson, MS 39210, USA
Yiwei Zhao: College of Business & Economics, Longwood University, Farmville, VA 23909, USA

JRFM, 2024, vol. 17, issue 2, 1-22

Abstract: Using a hand-collected sample of non-financial firms listed on the Pakistan Stock Exchange (PSX) over the period of 2011–2021, we examine the joint effect of intellectual capital and innovation on the financial vulnerability of a firm, which is an important risk factor that a firm may face in its operation. We first use the static fixed-effect panel model as our baseline regression model and find that the level of intellectual capital of a firm strengthens the positive effect of the adoption of product and market innovation on reducing the financial vulnerability of the firm. We also conduct additional analyses using alternative measures of financial vulnerability, as well as various regression models, and confirm that the results are robust under different scenarios. Overall, the results highlight the positive role of the intellectual capital, as well as the joint effect of intellectual capital and innovation, in mitigating the financial vulnerability faced by a firm and thus have academic and practical implications to academic researchers and practitioners.

Keywords: innovation; financial vulnerability; intellectual capital (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1911-8074/17/2/47/pdf (application/pdf)
https://www.mdpi.com/1911-8074/17/2/47/ (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:jjrfmx:v:17:y:2024:i:2:p:47-:d:1327372

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().