| SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES |
VOL. 15 |
NO. 2 |
PAPER 4 |
10.5958/2321-2012.2019.00012.5 |
IMPACT OF INTELLECTUAL CAPITAL ON FIRM’S VALUE:
THE MODERATING ROLE OF MANAGERIAL OWNERSHIP
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| Aftab Ahmed* Muhammad Kashif Khurshid** Muhammad Zulfiqar*** and Muhammad Usman Yousaf****
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| * Regional Manager, Allied Bank Faisalabad, Pakistan
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| ** National University of Modern Languages, Pakistan
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| *** Dongbei University of Finance and Economics, Dalian, China
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| **** GC University Faisalabad, Pakistan
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| Rapidly changing dynamics of globalization and increasing market competition are causing the companies all around the world, to confront several new challenges and opportunities. This study proposes to inspect the impact of intellectual capital on firm’s value. Further, the moderating role of managerial ownership has been evaluated with the help of regression analysis. The sample included the panel data taken from non-financial firms, listed on PSX (Pakistan Stock Exchange) over the period 2010-2015. VAIC (Value Added Intellectual Coefficient) Model was used for the calculation of intellectual capital. Tobin’s Q was taken as the measure of firm’s value. It is concluded that the relationship between intellectual capital and firm value was positively significant. It is also concluded that managerial
ownership moderated the relationship between predictor i.e. intellectual capital and outcome variable, i.e. firm’s value, negatively.
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