Intellectual capital and financial performance: evidence from Chinese retail firms
Document Type
Article
Publication Date
1-1-2023
Abstract
This study explores the impact of intellectual capital (IC) on Chinese retail public firms’ financial performance. This study chooses Chinese retail industry quoted on the Shanghai and Shenzhen Stock Exchanges as the sample, covering the period from 2011 to 2020. Results show that IC (measured through the value-added intellectual coefficient) has a positive relationship with EBITDA, NPM, ROI, ROA, and ROE. From this study, several implications suggest that managers and investors wisely utilise IC in firm decision-making. This study provides proof that high investments in IC can improve the efficiency of value addition for firms or industries in China. Managers must understand that investment in IC is vital to sustainably improve the financial performance of their companies. Investors can use a group of indicators instead of merely one for each aspect of financial performance to analyse the role of IC and obtain more accurate instructions to make investment decisions.
Publication Title
International Journal of Learning and Intellectual Capital
First Page Number
394
Last Page Number
409
DOI
10.1504/IJLIC.2023.132171
Recommended Citation
Chen, Huanzhe and Rahman, Md Jahidur, "Intellectual capital and financial performance: evidence from Chinese retail firms" (2023). Kean Publications. 327.
https://digitalcommons.kean.edu/keanpublications/327