INTELLECTUAL CAPITAL PERFORMANCE AND FIRM PERFORMANCE AND VALUE: THE MODERATING ROLES OF PRE AND POST CORPORATE GOVERNANCE AMENDMENTS 2017
Haider Mahdi Saleh
haider.saleh@cihanuniversity.edu.iq
Abstract- In the age of knowledge economy, Intellectual Capital (IC) is gaining prominence in academic research and management practices owing to the fact that it is a significant contributor to strong performance and value creation. To achieve maximum performance and value, the corporate governance (CG) mechanism plays an important role by enhancing the management of IC practice via effective control, measurement, and reliable reporting of IC. In 2017, Malaysia witnessed the reform of corporate governance emphasizing a holistic structural change. Arguably, such reforms could result in better IC management practice compared to the prior CG code established in 2012. However, the desired effect of the new code on IC with respect to strong performance and value has not been tested thus far. This study, therefore, was carried out with the aim to compare the effect of IC on strong performance and value between pre- and post-Malaysian Code of Corporate Governance 2017 practices. The study involved three research objectives, which were to investigate the associations of IC and performance and value, to compare the moderating effects of MCCG 2012 and MCCG 2017 practices on such associations relating to the desired improvement between the codes, and to compare the moderating effects of mandatory CG 2012 and 2017 practices and voluntary CG practices on such associations. The research data consisted of information derived from the financial years of 2015, 2016, 2017, and 2018. The CG index of mandatory practice was developed using MCCG 2012 and 2017 codes, and the CG index for voluntary CG practices was constructed using the index that emerged from prior studies.
Keywords- corporate governance, Malaysian code of corporate governance; MCCG; firm performance; intellectual capital, Residual centering regression
Date: 31/10/2019
Place: Business Administration Department. Hall No. 8204