Title: Intellectual capital and firm performance: the role of institutional ownership

Authors: Ranjit Tiwari

Addresses: Department Finance and Accounting, Chandragupt Institute of Management Patna, Bihar, 800001, India

Abstract: Prior studies have looked at how intellectual capital affects firm performance without taking institutional ownership into account. This study aims to investigate the potential moderating effects of institutional ownership on the association between intellectual capital and firm performance. The results of the panel generalised method of moments (GMM) using data for 767 manufacturing firms from 2010 to 2019 showed that the two components of intellectual capital that consistently affect firm performance are the human capital coefficient and structural capital coefficient. In addition, institutional ownership is seen to moderate the effect of the human capital coefficient on firm performance rather than having a direct impact on it. Furthermore, the influence of the human capital coefficient on firm performance is moderated by the promoter institutional ownership.

Keywords: intellectual capital; institutional ownership; firm performance; interaction effects; generalised method of moment; GMM.

DOI: 10.1504/IJMFA.2023.133777

International Journal of Managerial and Financial Accounting, 2023 Vol.15 No.4, pp.442 - 482

Received: 08 Feb 2022
Accepted: 08 Jul 2022
Published online: 03 Oct 2023 *

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