Intellectual Capital Effects by Satisfactory Design on Financial and Economic Performance of Malaysian Companies

Subject Areas : International Journal of Finance, Accounting and Economics Studies

Payam  Mojtahedi ¹ (Department of Accounting, East Tehran Branch, Islamic Azad University, Tehran, Iran)

Received: 2011-06-15 Accepted : 2011-09-21 Published : 2012-10-31

Keywords: EVA, Intellectual Capital, Residual Benefit, RG, ROE, Satisfaction,

Abstract :

This paper aims to prepare intellectual capital component by satisfactory design. Satisfaction of employees, customers and residual benefit are the main core of present measurements. The correct position of these items in the financial statements are proposed by correcting entries, then the impact of these elements are investigated on the return on equity, revenue growth and economic value added. Both disproportionate stratified random sampling and systematic omission have been applied to achieve this study to eight industriesand finally thirty six companies from the main board of Malaysian stock exchange during the years, 2006-2013. Firm size and debt ratio are used as control variables. Obtained output demonstrate that, all components have positive effect on ROE just human and structural capital have negative relationship with revenue growth and EVA, respectively. This matter reveals that, that it is not just payment to employees, but the payment structure is also important andnegative relationship between SC and EVA proved that, by increase of firms income the motivationof dividend income will increase and the economic value of firms will reduced.

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