THE NEXUS BETWEEN INTELLECTUAL CAPITAL AND FIRM VALUE: EVIDENCE ON THE MEDIATING ROLE OF FINANCIAL PERFORMANCE AND COMPETITIVE ADVANTAGE.
Keywords:
Intellectual capital, Financial Performance, Competitive Advantage and Firm Value.Abstract
This
research study aims to investigate the intellectual Capital and Firm Value,
where Financial Performance and Competitive Advantage are the mediating
variables. It involves 20 Pakistani stock exchange listed banks in the time
span between 2015 and 2024, which constitutes 200 bank-year observations.
Statistical tests like descriptive statistics and multiple regression were
carried out to test the hypothesis. This study employs python for data
analysis. According to the results, intellectual capital positively influences the
firm value directly, significantly, and positively, whereas the association of
intellectual capital with the competitive advantage is strong, and the
relationship between intellectual capital and financial performance is not
significant. There is no significant impact of financial performance on firm
value, but competitive advantage has a statistically significant positive
impact on firm value. Moreover, IC has a very low positive moderating impact on
firm value, as it is a result of financial performance, but its impact on the
firm’s value is negative when the impact is on the competitive advantage.
