A new perspective on intelectual capital and financial performance a case of insurance companies in China /
Ren Chunya,
A new perspective on intelectual capital and financial performance a case of insurance companies in China / Ren Chunya - xii, 230 pages : illustrations (some color) ; 30 cm. + 1 CD ROM
Faculty of Industrial Management
Thesis (Master of Science) -- Universiti Malaysia Pahang – 2020
Includes bibliographical references
In the knowledge era, intellectual capital (IC) has become increasingly important with rapid industrial development that relies more on intellect and less on labor. Therefore, many kinds of research have examined the impact of IC components on financial performance. However, examining only the general level of IC is insufficient to reveal how IC would be beneficial to financial performance. Specifically, investigating the trend of changes in IC could help explain the mixed results of the impact of IC on financial performance in the existing literature. Since the Chinese insurance industry has been focusing on using intangible resources in managing their business, this thesis works on data of Chinese insurance companies from 2008 to 2017, which is collected from The Yearbook of China’s Insurance. The objective of the thesis was to examine the impact of IC on financial performance based on the resource-based theory. This study applied the value-added intellectual coefficient (VAICTM) model with human capital efficiency (HCE), structural capital efficiency (SCE), and capital employed efficiency (CEE) as proxies of IC components. Furthermore, human capital ratio (HCR), structural capital ratio (SCR), and capital employed ratio (CER) were used in the sensitivity analysis. The dependent variables were return on assets (ROA) and return on equity (ROE), both of which are proxies of financial performance related to their financial outcomes. The panel regression model was mainly employed, and OLS was used for the robust check to identify the relationship between the independent variables and the dependent variables. The results showed that human capital (HC) and capital employed (CE) both had direct and changing effect on financial performance. In contrast, all IC components presented insignificant effect on the dynamic effect on financial performance. This study differs from previous studies referring to IC and financial performance in two ways, including IC components ratio as another proxy of IC components and exploring the change in financial performance due to changes in IC components. Finally, this thesis provides suggestions for insurance practitioners to focus more on HC and CE, also, adds new insight for VAIC model’s predictive use in the literature.
THE0009268(Local)
Faculty of Industrial Management--Dissertations
Universities and colleges--Dissertations
Thesis
A new perspective on intelectual capital and financial performance a case of insurance companies in China / Ren Chunya - xii, 230 pages : illustrations (some color) ; 30 cm. + 1 CD ROM
Faculty of Industrial Management
Thesis (Master of Science) -- Universiti Malaysia Pahang – 2020
Includes bibliographical references
In the knowledge era, intellectual capital (IC) has become increasingly important with rapid industrial development that relies more on intellect and less on labor. Therefore, many kinds of research have examined the impact of IC components on financial performance. However, examining only the general level of IC is insufficient to reveal how IC would be beneficial to financial performance. Specifically, investigating the trend of changes in IC could help explain the mixed results of the impact of IC on financial performance in the existing literature. Since the Chinese insurance industry has been focusing on using intangible resources in managing their business, this thesis works on data of Chinese insurance companies from 2008 to 2017, which is collected from The Yearbook of China’s Insurance. The objective of the thesis was to examine the impact of IC on financial performance based on the resource-based theory. This study applied the value-added intellectual coefficient (VAICTM) model with human capital efficiency (HCE), structural capital efficiency (SCE), and capital employed efficiency (CEE) as proxies of IC components. Furthermore, human capital ratio (HCR), structural capital ratio (SCR), and capital employed ratio (CER) were used in the sensitivity analysis. The dependent variables were return on assets (ROA) and return on equity (ROE), both of which are proxies of financial performance related to their financial outcomes. The panel regression model was mainly employed, and OLS was used for the robust check to identify the relationship between the independent variables and the dependent variables. The results showed that human capital (HC) and capital employed (CE) both had direct and changing effect on financial performance. In contrast, all IC components presented insignificant effect on the dynamic effect on financial performance. This study differs from previous studies referring to IC and financial performance in two ways, including IC components ratio as another proxy of IC components and exploring the change in financial performance due to changes in IC components. Finally, this thesis provides suggestions for insurance practitioners to focus more on HC and CE, also, adds new insight for VAIC model’s predictive use in the literature.
THE0009268(Local)
Faculty of Industrial Management--Dissertations
Universities and colleges--Dissertations
Thesis