Vladimir Dženopoljac, Shahnawaz Muhammed and Stevo Janošević
The purpose of this paper is to assess the extent to which financial and market performance of companies in the oil and gas sector can be attributed to the value of their…
Abstract
Purpose
The purpose of this paper is to assess the extent to which financial and market performance of companies in the oil and gas sector can be attributed to the value of their intangibles.
Design/methodology/approach
The research utilized publicly available data on global oil and gas companies from 2000 to 2015. Panel data analysis was used to assess the relationship between intangibles (measured by Calculated Intangible Value (CIV)) and financial and market performance of these companies.
Findings
Results show that intangibles had a significant impact on firm performance in multiple financial measures. Firms’ intangibles also influence their market capitalization, indicating that the financial markets discount such information in their pricing.
Research limitations/implications
Although the impact of intangibles on corporate performance is found to be significant, the size of that impact is small, suggesting that significant increase in the size of intangibles would only lead to a modest increase in corporate performance. Additionally, the research sample was limited to the top oil and gas firms listed in the Fortune 2000 global list and limits the generalization of the findings. Despite these limitations, the research provides greater confidence in using CIV to assess intangibles in organizations.
Practical implications
This research highlights the importance and ways of measurement of intangibles for managers in oil and gas companies and its significance for their firms’ performance.
Originality/value
The paper fills the gap in the literature in the assessment of intangibles in the oil and gas sector, as well as in the assessment of using CIV to measure the impact of intangibles on company performance.
Details
Keywords
Nick Bontis, Stevo Janošević and Vladimir Dženopoljac
The purpose of this study is to determine whether intellectual capital (IC) creates value in the Serbian hotel industry. Specifically, this paper examines to what degree IC and…
Abstract
Purpose
The purpose of this study is to determine whether intellectual capital (IC) creates value in the Serbian hotel industry. Specifically, this paper examines to what degree IC and its key components affect the financial performance of hotels compared to physical and financial capital.
Design/methodology/approach
The sample included all of the hotels that operated as independent entities in Serbia during 2009–2012. value-added intellectual coefficient was used to measure the level of IC contribution to value creation, which was linked to various measures of financial performance, including operating profit, return on equity, return on assets, profitability and employee productivity.
Findings
Results indicate that after controlling for firm size and leverage, employee productivity and, to some extent, profitability were affected by human and structural capital. The research confirms that the financial performance of hotels in Serbia remains predominantly influenced by efficient use of physical capital.
Research limitations/implications
The study’s generalizability is limited to the hotel sector within Serbia.
Practical implications
Senior managers in the hotel industry must recognize the importance of managing both the physical aspects of their hotels and the intangible resources embedded in their employees and processes.
Originality/value
The findings will aid recognition of the importance of investing in IC in hotel industry as a crucial element of achieving competitive advantage in the information age. Moreover, the findings suggest that long-term growth should not rely solely on physical and financial assets.
Details
Keywords
Vladimir Dženopoljac, Stevo Janoševic and Nick Bontis
The purpose of this paper is to examine whether intellectual capital (IC) creates value in the Serbian information communication technology (ICT) sector. More specifically, it…
Abstract
Purpose
The purpose of this paper is to examine whether intellectual capital (IC) creates value in the Serbian information communication technology (ICT) sector. More specifically, it examines the degree to which IC and its key components affect the financial performance of selected ICT companies compared to effects on physical and financial capital.
Design/methodology/approach
The analysis included 13,989 Serbian ICT companies during 2009-2013. Value-added intellectual coefficient (VAIC) was used to measure the level of IC contribution to value creation. Measures of financial performance used in the study were return on equity, return on assets, return on invested capital, profitability, and asset turnover.
Findings
Results indicate that, when using firm size and leverage as control variables, only capital-employed efficiency has significant effect on financial performance. Finally, the research confirms that there were no significant differences in financial performance among different ICT subsectors.
Research limitations/implications
Main research limitation is related to the disadvantages of VAIC as the measure of IC’s contribution to value creation.
Practical implications
Owners and managers of Serbian ICT companies must recognize the importance of managing both the physical capital and the intangible resources embedded in their employees and processes.
Originality/value
This is the first paper to examine comprehensively the impact of IC on financial performance in the ICT sector in a transitional economy. This study differs from prior studies in that the authors analyzed every company that operated in Serbian ICT sector.
Details
Keywords
Ala'aldin Alrowwad, Shadi Habis Abualoush and Ra'ed Masa'deh
The purpose of this paper is to examine the mediating effect of intellectual capital and innovation on the relationship between transformational and transactional leadership and…
Abstract
Purpose
The purpose of this paper is to examine the mediating effect of intellectual capital and innovation on the relationship between transformational and transactional leadership and organizational performance in Jordanian banks located in Irbid city.
Design/methodology/approach
A questionnaire that targeted 350 respondents resulted in 298 usable ones with a response rate of 85.14 percent. To test the research hypotheses, a structural equation model was conducted, in addition to descriptive statistics that provided background on the respondents.
Findings
The findings indicate that transformational and transactional leadership relate positively to organizational performance. The results also support the argument that intellectual capital and innovation played mediating roles in transformational and transactional leadership and organizational performance.
Practical implications
The present study provides managers with empirical proof that possessing strong intellectual capital in its three dimensions seems to help the banking sector in Jordan to reinforce their ability to generate both radical and incremental innovation. Also, applying an effective leadership style will motivate and lead to superior performance.
Originality/value
Although papers have shown that leadership style is an important factor influencing employees' performance and outcomes, this is one of the few studies that investigates the interrelationships between leadership styles, intellectual capital, and innovation on organization performance. Furthermore, it is the first to test the model on the banking sector in Jordan.