Title: Intellectual capital on listed agricultural firms' performance in Malaysia

Authors: Siew-Peng Lee; Shaiban Mohammed

Addresses: Faculty of Accountancy and Management, University of Tunku Abdul Rahman, Sungai Long Campus, Lot PT 21144, Bandar Sungai Long, 43000 Selangor, Malaysia ' Faculty of Accountancy and Management, University of Tunku Abdul Rahman, Sungai Long Campus, Lot PT 21144, Bandar Sungai Long, 43000 Selangor, Malaysia

Abstract: This study investigates the intellectual capital on agricultural firms' performance listed on the Malaysian Stock Exchange during 2003-2009. It is also our intent to explore whether firm size and corporate governance characteristics, in the form of control variables, influences a firm's performance. Pulic's value added intellectual coefficient (VAIC) methodology is used as the efficiency measure of intellectual capital, and panel regressions are used to examine the relationship between intellectual capital and a firm's performance. Panel regressions' results showed that a firm's intellectual capital has a positive impact on financial and productivity performances. However, the association between intellectual capital and economic performance is insignificant. The results also indicate that the capital employed and structural capitals are major determinants of financial and productivity performances. Board features, however, fail to show a consistency between themselves and firm's performance across any of the three measurements included in the current study.

Keywords: intellectual capital; value added intellectual coefficient; VAIC; corporate governance; financial performance; Malaysia; agricultural firms; agriculture; firm performance; productivity.

DOI: 10.1504/IJLIC.2014.063891

International Journal of Learning and Intellectual Capital, 2014 Vol.11 No.3, pp.202 - 221

Received: 21 Aug 2013
Accepted: 09 Feb 2014
Published online: 30 Aug 2014 *

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