Abstract:
This study's objective was to check the impact of intellectual capital and ownership
on firm performance of non-financial sector in Pakistan.
Methodology and Design
ABSTRACT
structure
For five years (2018-2022), this research uses a balanced panel data analysis to examine the
data of 30 non-financial enterprises from 14 industries that are listed on the PSE INDEX-100.
The impact of IC efficiency and ownership structure on company performance was
investigated using the intellectual coefficient model. As controls, the board size, firm age, and
firm size were considered. Along with the Wooldridge test, Panel GMM regression was
conducted on ROA. Panel regression was used to further test the robustness of the influence.
Finding
Revealed that IC efficiency has the potential effect towards Firm performance. Control
variables were having variances which doesn’t provide not further or no impact between IC
ownership structure and firm performance.
Limitations
Like many other studies, this one has certain restrictions. In order to assess the correctness of
the IC, future research should consider the original VAIC model. This research solely includes
non-financial enterprises in its sample. Only two ownership structure proxies and business
performance were examined in this research together with three control variables. This
research is restricted to examining the direct link between IC and company performance while
controlling for other factors. Further evaluation is possible.
Recommendation
The results may also be useful to prospective investors who want to forecast a firm's future IC
efficiency prior to making an investment choice in light of BS, FA, and FS. The study's findings
may also be used as a starting point for politicians and corporate executives to create better
strategies for using IC resources to gain competitive advantages. Additionally, this research
offers policymakers proof that boosting FROWN in Pakistan's non-financial businesses will
enhance corporate performance.
