International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

Impact of Intellectual Capital Factors on Competitive Capability Derived from Market Share and Stock Prices of Companies (Role of Moderating Factors)

Document Type : Original Article

Authors
Mehdi Goodarzi 1
Aliakbar Chaharmahali 2
Ehsan Rahmaninia 3
Hashem Nikoomaram 4
Mohsen Amini Khozani 5
1 PhD Student in Accounting, North Tehran Unit, Islamic Azad University, Tehran, Iran.
2 Assistant Professor, Accounting, North Tehran Unit, Islamic Azad University, Tehran, Iran.
3 Assistant Professor, Accounting, North TehranBranch, Islamic Azad University, Tehran, Iran.
4 Professor, Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran.
5 Assistant Professor, Financial Engineering, Shahr-e Qods Unit, Islamic Azad University, Tehran, Iran.
10.30495/ijfma.2024.76535.2088
Abstract
This scholarly endeavor aims to examine the enhancing or limiting role of factors affecting intellectual capital to implement changes in the competitive ability of companies. The enhancement of a company's competitive ability has always been a focal point for company managers, and numerous studies have been conducted to identify factors that augment this competitive capability. The objective of this research is to analyze the role of intellectual capital comprising human capital, relational capital, and structural capital on the dimensions of market share and stock price in a company's competitive capacity. Furthermore, the effect of two moderating variables, political relations and strategic management accounting (SMA), on the relationship between intellectual capital indicators and market share and stock price dimensions within a multiple regression model has been scrutinized and interpreted. The primary aim of the present research is to elucidate the role and significance of SMA and political relations in the influence process of intellectual capital on the competitive capability derived from market share and stock prices to control influential factors in this regard. Hypothesis testing was carried out using a multivariate linear regression model, and data analysis was conducted using the panel data method. The findings indicate that in addition to the significant positive relationship between intellectual capital on the competitive capability derived from the companies' market share, political relations, and SMA have positive moderating effects on the relationship between intellectual capital and competitive capability stemming from market share. However, SMA, as a moderating variable, has no impact on this relationship.
Keywords
Competitive Capability
Intellectual Capital
Market Share
Stock Price
Strategic Management Accounting
  1. Alvino, F., Di Vaio, A., Hassan, R. and Palladino, R. (2021). "Intellectual capital and sustainable development: a systematic literature review", Journal of Intellectual Capital, Vol. 22 No. 1, pp. 76-94.
  2. Javan Amani, Vahid and Akbari, Hamid (2022). Investigating the impact of knowledge management and intellectual capital in gaining a competitive advantage and prioritizing them using the AHP method (Case study: Iran Insurance Company). Information management sciences and techniques, 8(2).
  3. D’Amato, A. (2021). Does Intellectual Capital Impact Firms’ Capital Structure? Exploring the Role of Firm Risk and Profitability. Managerial Finance.
  4. Duff, A. (2018). Intellectual capital disclosure: evidence from UK accounting firms. Journal of Intellectual Capital, Vol. 19 No. 4, pp. 768-786.
  5. Faccio, M. (2010). Differences between politically-connected and non-connected firms: a cross country analysis. Financial Management, Vol. 39, No. 3, pp. 905-928.
  6. Hassan Zadeh brothers, Rasoul, Abizi, Isa, and Namur, Ramin (2019). The impact of political communications on corporate social responsibility with an emphasis on product market competition. Journal of Empirical Accounting Research, Vol. 9, No. 3 - Sequential No. 33, pp. 301-325.
  7. Habib, A., & Muhammadi, A. H. (2018). Political connections and audit report lag: Indonesian evidence. International Journal of Accounting & Information Management, Vol. 26, No. 1, pp.59-80.
  8. Handayani, Y.S. & Karnawati, Y. (2020). Achieving Competitive Advantage through Intellectual Capital. In: International Conference on Business Economics and Social Science.
  9. Honggowati, Setianingtyas (2017). Corporate Governance and Strategic Management Accounting Disclosure. Indonesian Journal of Sustainability Accounting and Management, 1, pp. 24. DOI: 10.28992/ijsam.v1i1.24.
  10. Jain P., Vyas V., and Roy A., Exploring the mediating role of intellectual capital and competitive advantage on the relation between CSR and financial performance in SMEs. Social Responsibility Journal, 2017. 13(1): p. 1–23.
  11. Liu C.-H., The relationships among intellectual capital, social capital, and performance the moderating role of business ties and environmental uncertainty. Tourism Management, 2017. 61: p. 553–561.
  12. Nakhaei, Karim, Yazdi Far, Hassan, and Faghani, Mehdi. (2021). Enhancing the effectiveness level of companies' competitive metrics based on strategic management accounting techniques through decision tree analyses and developed raft theory. Empirical accounting research, 11(39), pp. 137-168.
  13. Pourmohammadian, Mitra and Bahri, Sajjad (2022). Investigating the moderating role of corporate bankruptcy risk on the relationship between intellectual capital and capital structure. Scientific journal of new research approaches in management and accounting, Vol. 6, No. 21, pp. 406-418.
  14. Rahimi Rigi, Qasem, Mostafayi, Qodrat, Karimi, Hamid, and Sheikh Mohammadi, Amir (2016). The effect of intellectual capital components on the efficiency of companies accepted in the Tehran Stock and Securities Exchange using the Data Envelopment Analysis (DEA) model. Auditing knowledge - No. 63, pp. 149-166.
  15. Syahchari, D. & Sahban, M. (2019). The Impact of Intellectual Capital and Knowledge Management on Competitive Advantage. International Journal of Innovation, Creativity, and Change, 10(8), pp. 261-272.
  16. Thalith Bahri, Jamal Abbrati, Mohammadreza (2019). The impact of political communications on the risk of stock price fall with an emphasis on product market competition in companies listed on the Tehran Stock Exchange. Scientific-research journal of investment knowledge, Vol. 8, No. 29, April, pp. 275-296.
  17. Taqvaee Yazdi, Maryam, et al. (2020). The effect of intellectual capital on organizational entrepreneurship (Case study: Mazandaran Science and Technology Park). Educational management innovations, No. 59, pp. 45-59.