Search results for: capital management

Authors: Barbara P. Ewerling, Bernadete M. Voichcoski, Alexandre J. Miziara

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Highly skilled and motivated employees, supported by the leadership through investments in development and by a healthy organizational environment, while performing their duties, produce a considerable amount of intellectual capital, which constitutes part of the intangible wealth that is not explicitly mentioned in accounting reports. The customer relationship is built subtly through three components of intellectual capital: human, structural, and relational capital. The indispensable skill is to understand what employees need in order to shape a favorable environment to the creation and gathering of this capital, given that a dissatisfied employee may intoxicate the environments he or she is part of. This research aims at instigating the reader to understand how the development of intellectual capital occurs within organizations; what are the near-ideal conditions for the process to be as rich and enjoyable as possible, where employees can feel belonging to a group and be motivated to evolve, which supports the idea that the recompense for work goes beyond financial rewards. The study explains how human capital and structural capital — comprised by management philosophy, corporate culture, and management processes — when combined with each other aiming at becoming a robust ecosystem, and how that ecosystem becomes the basis for a competitive advantage when viewed as a principle value-generating principle for the company. Psychometrics proved to be a great method for evaluating potential; however, during the studies, it was observed that due to the complexity of human capital and its relationships with the environment, it is also necessary to consider a set of intrinsic characteristics of each individual which is difficult to measure. Structural capital, shaped by innovation, process, and organizational capital, reflects a company's ability to reinvent itself for longevity, making room for new ideas, organize itself for better profits, and optimize its processes to prevent wasting of time. Considering the findings during the study, it is understood that investing in organizational health and quality of life at work to create a healthy environment encourages good actions from both sides, the company, and the employees, and both are equally responsible for establishing this healthy environment.

Keywords: human value development, intellectual capital, organizational health, structural capital

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Authors: Ketevan Kokrashvili, Rusudan Kutateladze, Nino Pailodze

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Importance of management of legal entities under private law of which especially corporate management, as well as looking for ways of its improvement and perfection has become especially relevant in the twenty-first century, which was greatly contributed to by the global economic crisis. Some states have adopted Corporate Governance Codes; the European Union has set to work on a series of directives the main purpose of which is an improvement of corporate governance, provision of greater transparency and implementation of an effective control mechanism. This process is not yet completed, and various problematic issues associated with management of legal persons are still being debated among practitioner experts and scholars. Georgia is not an exception in this regard. The article discusses the legislative gaps, and in some cases, discrepancies having arisen in legal relationships under private law and having caused many practical problems. This especially applies to the management of capital companies.

Keywords: business entities, corporate management, capital public management, existing problems, legal discrepancies

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Authors: Mingbao Chen

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The blue economy is a new comprehensive marine economy integrated with resources, industries, and regions, and is an upgraded version of the marine economy. The blue economy attaches great importance to the coordinated development of the ecological environment and the economy, which is an emerging economic form advocated by all countries in the world. This paper constructs the model including four variables：natural capital, economic capital, intellectual capital, cultural capital. Theoretically, this paper deduces the function mechanism of variables on economic growth, and empirically calculates the driving force and influence of the blue economy on the national economy by using data of China's 2006-2015 year. The results show that natural capital and economic capital remain the main factors of blue growth in the blue economy. And with the development of economic society and technological progress, the role of intellectual capital and cultural capital is bigger and bigger. Therefore, promoting the development of marine science and technology and culture is the focus of the future blue economic development.

Keywords: blue growth, natural capital, intellectual capital, cultural capital

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Authors: Ikaputra

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This paper will focus on the concept of social capital for especially housing reconstruction Post Disaster. The context of the study is Indonesia and Yogyakarta Post Earthquake 2006 as a case, but it is expected that the concept can be adopted in general post disaster reconstruction. The discussion will begin by addressing issues on House Reconstruction Post Disaster in Indonesia and Yogyakarta; defining Social Capital as a concept for effective management capacity based on community; Social Capital Post Java Earthquake utilizing Gotong Royong—community mutual self-help, and Approach and Strategy towards Community-based Reconstruction.

Keywords: community empowerment, Gotong Royong, post disaster, reconstruction, social capital, Yogyakarta-Indonesia

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Authors: Chih Chin Yang

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The paper proposed a new theory of intellectual capital (so called IC) and a value approach in associated with production and market. After an in-depth review and research analysis of leading firms in this field, a holistic intellectual capital model is discussed, which involves transport, delivery supporting, and interface and systems of on intellectual capital. Through a quantity study, it is found that there is a significant relationship between the product value and infrastructure in a company. The product values are transferred from intellectual capital elements which includes three elements of content and the enterprise includes three elements of infrastructure in its market and product values of enterprise.

Keywords: enterprise, product value, intellectual capital, market and product values

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Authors: Pitimanus Bunlue

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This research aim (1) to determine the content of communication, social capital and cultural capital to promote tourism in the province to create awareness, motivation and desire to tourists visiting Thailand (2) to evaluate the performance of innovation communication social capital and cultural capital to promote tourism southern of Thailand. This research is a qualitative research. A research synthesis projects on social capital and cultural capital by use focus group discussions with media professionals and academics to communicate using a random sample specific. The result show that (1) Innovative communication, social capital and cultural capital and effective communication innovations after everyone wants to travel to Ranong province is the very highest level. (2) Information and experience about Ranong at a high level. (3) The data shows the strengths of each of the attractions at a high level. (4) The data shows a lifestyle that is unique to the province is moderate.

Keywords: innovative communication, promoting tourism, southern of Thailand, social capital

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Authors: Firas A. N. Al-Dalabih

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This study aims at identifying the level of disclosure of intellectual capital at the Jordanian development banks. The study sample composed of (100) individuals working at the National Bank to Finance Small Projects around the different governorates of the Hashemite Kingdom of Jordan. A questionnaire has been prepared and distributed over the study sample. (95) Questionnaires have been retrieved; valid for the statistical analysis purposes with a percentage of (95%). The study results showed that the level of disclosure of intellectual capital with all its dimensions (human capital, customer capital and structural capital) at the Jordanian development banks was of a high level. The results also showed that there is a high level of awareness performed by the Jordanian development banks’ employees in regard to the necessity and importance of the intellectual capital’s disclosure. The study was concluded with a number of recommendations among which were that the Jordanian development banks shall take notice toward increasing their workers’ awareness regarding the importance of intellectual capital’s disclosure, as well as applying this study over commercial and Islamic banks for the purposes of carrying out a comparison between them and the development banks.

Keywords: intellectual capital, Jordanian development banks, the level of disclosure

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Authors: Hossein Emari, Hossein Vazifehdoust, Hashem Nikoo Maram

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This study aims to develop an original framework of Environmental Consciousness (EC) to explore the positive effect of environmental consciousness on financial performance through the partial mediator - green intellectual capital. A questionnaire survey on the environmental consciousness, intellectual capital, and financial performance of Iran’s manufacturing firms was conducted, and 324 samples were analyzed. This study utilizes structural equation modeling to explore the direct and indirect influences of EC on financial performance. Research results reveal that environmental consciousness had an indirect impact on financial performance through investment in green intellectual capital. It was thus known that green intellectual capital is a mediator of the relationship between environmental consciousness and financial performance. This paper may serve as a reference for firms mapping out future environmental policies and provide an input of various perspectives and arguments into the discipline of green management.

Keywords: environmental consciousness, social responsibility, green intellectual capital, financial performance

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Authors: Vichada Chokesikarin

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We propose that the ability to create the business success requires Adversity Quotient (AQ) and Human Capital (HC). The aims of the present study are to investigate adversity quotient, human capital and entrepreneurial success of accommodation entrepreneurs in Pranakorn, Bangkok and to examine the relationship between AQ, HC and Entrepreneurial Success. The participants of this study were 112 entrepreneurs in accommodation business in the Khao San/Grand Palace, the location nearby demonstration area in 2014. Specifically, we focus on higher adversity which provides a measure of one’s perceived capacity to prevail in the face of adversity and the effects of human capital on success. Results indicated that there is significant relationship between human capital and entrepreneurial success, while adversity quotient was found to partially mediate the entrepreneurial success. Moreover, our findings showed that the human capital -experience and skills- are more important than adversity quotient. This suggests that the entrepreneurial success should rely on their skill and experiences.

Keywords: accommodation business, adversity quotient, entrepreneurial success, human capital

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Authors: Safak Baykal

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The purpose of this study is analyzing the relationship between self leadership and social capital of people with using Social Network Analysis. In this study, two aspects of social capital will be focused: bonding, homophilous social capital (BoSC) which implies better, strong, dense or closed network ties, and bridging, heterophilous social capital (BrSC) which implies weak ties, bridging the structural holes. The other concept of the study is Trust (Tr), namely interpersonal trust, willingness to ascribe good intentions to and have confidence in the words and actions of other people. In this study, the sample group, 61 people, was selected from a private firm from the defense industry. The relation between BoSC/BrSC and Tr is shown by using Social Network Analysis (SNA) and statistical analysis with Likert type-questionnaire. The results of the analysis show the Cronbach’s alpha value is 0.73 and social capital values (BoSC/BrSC) is highly correlated with Tr values of the people.

Keywords: bonding social capital, bridging social capital, trust, social network analysis (SNA)

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Authors: Anjli Pathak, Harshit Sosan Lakra, Smriti Mishra

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The increasing urbanization affects the external environment in which people exist and imposes livelihood vulnerability to shocks and stresses. Although research on the linkages between urbanization and vulnerability has been increasing, only a few studies have examined the caste/ethnicity in livelihood vulnerability. In this study, we explore how physical capital influences vulnerability among indigenous people in the context of livelihood. The study identifies the dimensions and indicators of physical capital that influence the profile of household vulnerability in the livelihood-building process. The result identified five dimensions and 19 indicators of livelihood vulnerability. The study also visualizes the inter-relationship between physical capital and other livelihood capital in formulating the livelihood vulnerability framework.

Keywords: urbanization, livelihood vulnerability, indigenous people, physical capital

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Authors: Ranjith Ihalanayake, Lalith Seelanatha, John Breen

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In this study, we explored the current working capital management practices as applied in small businesses in Victoria, filling an existing theoretical and empirical gap in literature in general and in Australia in particular. Amidst the current global competitive and dynamic environment, the short term insolvency of small businesses is very critical for the long run survival. A firm’s short-term insolvency is dependent on the availability of sufficient working capital for feeding day to day operational activities. Therefore, given the reliance for short-term funding by small businesses, it has been recognized that the efficient management of working capital is crucial in respect of the prosperity and survival of such firms. Against this background, this research was an attempt to understand the current working capital management strategies and practices used by the small scale businesses. To this end, we conducted an internet survey among 220 small businesses operating in Victoria, Australia. The survey results suggest that the majority of respondents are owner-manager (73%) and male (68%). Respondents participated in this survey mostly have a degree (46%). About a half of respondents are more than 50 years old. Most of respondents (64%) have business management experience more than ten years. Similarly, majority of them (63%) had experience in the area of their current business. Types of business of the respondents are: Private limited company (41%), sole proprietorship (37%), and partnership (15%). In addition, majority of the firms are service companies (63%), followed by retailed companies (25%), and manufacturing (17%). Size of companies of this survey varies, 32% of them have annual sales $100,000 or under, while 22% of them have revenue more than $1,000,000 every year. In regards to the total assets, majority of respondents (43%) have total assets $100,000 or less while 20% of respondents have total assets more than $1,000,000. In regards to WCMPs, results indicate that almost 70% of respondents mentioned that they are responsible for managing their business working capital. The survey shows that majority of respondents (65.5%) use their business experience to identify the level of investment in working capital, compared to 22% of respondents who seek advice from professionals. The other 10% of respondents, however, follow industry practice to identify the level of working capital. The survey also shows that more than a half of respondents maintain good liquidity financial position for their business by having accounts payable less than accounts receivable. This study finds that majority of small business companies in western area of Victoria have a WCM policy but only about 8 % of them have a formal policy. Majority of the businesses (52.7%) have an informal policy while 39.5% have no policy. Of those who have a policy, 44% described their working capital management policies as a compromise policy while 35% described their policy as a conservative policy. Only 6% of respondents apply aggressive policy. Overall the results indicate that the small businesses pay less attention into the management of working capital of their business despite its significance in the successful operation of the business. This approach may be adopted during favourable economic times. However, during relatively turbulent economic conditions, such an approach could lead to greater financial difficulties i.e. short-term financial insolvency.

Keywords: small business, working capital management, Australia, sufficient, financial insolvency

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Authors: Nhabhat Chaimongkol

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Human capital is one of the factors that are vital for economic growth. This is especially true as humans will face increasingly more forms of disruptive technology in the near future. Therefore, there is a need to develop human capital in order to overcome the current uncertainty in the global economy and the future of jobs. In recent years, Thailand has increasingly devoted more attention to developing its human capital. The Thai government has raised this issue in its national agenda, which is part of its 20-year national strategy. Currently, there are multiple challenges and solutions regarding this issue. This study aims to find out what are the challenges and solutions to human capital development in Thailand. The research in this study uses mixed methods consisting of quantitative and qualitative research methods. The results show that while Thailand has many plans to develop human capital, it is still lacking the necessary actions and integrations that are required to achieve its goals. Finally, the challenges and solutions will be discussed in detail.

Keywords: challenges, human capital, solutions, Thailand

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Authors: Brenda Margaret Behan

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Kenya is a water-stressed country with highly varied socio-ecological environments in its devolved county system, and is currently implementing a polycentric water governance system; this paper examines the importance of social capital in community-based natural resource management and its role in supporting good water governance systems in the Kenya context. Through a robust literature review of theory and case studies, specific aspects of social capital are examined to determine their importance in the implementation of local community-based water management arrangements which support and complement the more formal institutions outlined in the 2002 and 2016 Water Acts of Kenya. Water is an increasingly important and scarce resource not only for Kenya, but for many communities across the globe, and lessons learned in the Kenya context can be useful for other countries and communities faced with similar challenges. Changing climates, increasing populations, and increased per capita consumption of water is contributing to a situation in which the management of water resources will be vital to community resilience. Community-based natural resource management is widely recognized as a building block and component of wider water resource management systems, and when properly conducted can provide a way to enable sustainable use of resources and empower communities. Greater attention to the social and cultural norms and traditional institutions associated with a community’s social capital can lead to better results for Kenya’s polycentric governance of water. The key findings and recommendations from this research show that in Kenya, traditional institutions need to be understood and integrated into governance systems; social values and cultural norms have a significant impact on the implementation of community-based water management efforts; and social capital is a dynamic concept which influences and is influenced by policies and practices. The community-based water management approach will continue to be a key cornerstone for Kenya’s polycentric water governance structure, especially in the more remote arid and semi-arid lands; thus, the successful integration of social capital aspects into planning and implementation will contribute to a strengthened, sustainable, and more equitable national water governance system. Specific observations and recommendations from this study will help practitioners and policymakers to better craft community-based interventions.

Keywords: community-based natural resource management, social capital, traditional institutions, water governance

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Authors: Santosh Kumar Sharma

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In view of management education with special reference to India, it has been noted that students have deviations between their career anchors and domain of specialization. As a consequence, they face problems in their summer internships and placements in the corporate sector. Eventually, they either change their career track or leave the management profession, which is a serious concern from the perspective of human capital. However, there is no substantial literature in the given context. Therefore, the present study contributes to the global discourse of management education and its spillover effect on human resource management. The objective of the present study is to analyze the deviation between career anchors and domain specialization with reference to management education in India. The present study is exploratory in nature, wherein data has been collected from a significant number of post-graduate students who are pursuing management education from a premium business school in India, followed by descriptive analysis. The present research contributes to the professional development of management students from the perspective of human capital, which is eventually related to various factors of the Indian economy.

Keywords: India, management education, domain specialization, placements

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Authors: Nizar Mansour, Chiha Gaha, Emna Gara

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The present research investigates the relationship among HRM practices, knowledge sharing behavior and a certain number of intermediary variables in the context of Tunisian knowledge-intensive firms. Results suggest that five HR practices influence either directly or indirectly the knowledge sharing behavior through enhancing the value of human capital and fostering a learning-oriented organizational climate. Results have strong theoretical implications for both the fields of knowledge management and strategic human resource management. Managerial implications are also derived.

Keywords: human capital, knowledge intensive firms, knowledge sharing, organizational climate, Tunisia

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Authors: Saad Saeed Althiabi

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This paper discusses the corporate positioning and how it became popular as a way to systematize production because of the unique manner in which incorporation legalized organizers to secure financial capital through locking it in. The power to lock in capital comes from the fact that a corporate exists as a separate legal entity, whose survival and governance are separated from any of its participants. The law essentially creates a different legal person when a corporation is created. Although this idea has been played down in the legal learning of the last decades in favor of the view that a corporation is purely something through which natural persons interrelate, recent legal research has begun to reassess the importance of entity status. Entity status, under the law and the related separation of governance from input of financial capital through the configuration of a corporation, sanctioned corporate participants to do somewhat more than connect in a series of business transactions.

Keywords: corporate law, entity status, locking in capital, financial capital

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Authors: Dahmani Aziz, Mekdad Yousra

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The intellectual capital is an important source of profitability and the main supporter of the competitive where this study examines the contribution of expenditure on intellectual capital in the performance of industrial enterprises Algerian, and through a case study Sonatrach as the most important industrial enterprises in Algeria and the driving force of the Algerian economy. It has been the use of value-added intellectual coefficient (VAIC) in measuring the contribution of intellectual capital and analyzing data Sonatrach during the period from the year 2001 until the year 2012, and test the validity of hypotheses using Stepwise Regression model through the SPSS statistical software, and the study has proved the existence of a positive relationship between spending on human capital and financial performance and a stronger degree relationship between the structural capital and economic performance.

Keywords: industrial enterprise, intellectual capital, performance, economy of Algeria, spending

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Authors: Yolanda Ramirez, Angel Tejada, Agustin Baidez

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In recent years, the intellectual capital reporting in higher education institutions has been acquiring progressive importance worldwide. Intellectual capital approaches becomes critical at universities, mainly due to the fact that knowledge is the main output as well as input in these institutions. Universities produce knowledge, either through scientific and technical research (the results of investigation, publications, etc.) or through teaching (students trained and productive relationships with their stakeholders). The purpose of the present paper is to identify the intangible elements about which university stakeholders demand most information. The results of a study done at Spanish universities are used to see which groups of universities have stakeholders who are more proactive to the disclosure of intellectual capital.

Keywords: intellectual capital, universities, Spain, cluster analysis

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Authors: Gamze Sekeroglu, Mikail Altan

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Working capital is identified as firm’s all current assets. Inventories which are one of the working capital elements are very important among current assets for firms. Because, profitability is an indicator for firms’ financial success is provided with minimum cost and optimum inventory quantity. So in this study, it is investigated as comparatively that the effect of inventory management on the profitability of Turkish firms which operated in weaving industry, eatables industry, wholesale and retail industry in between 2003 – 2012 years. Research data consist of profitability ratios and inventory turnovers ratio calculated by using balance sheets and income statements of firms which operated in Borsa Istanbul (BIST). In this research, the relationship between inventories and profitability is investigated by using SPSS-20 software with regression and correlation analysis. The results achieved from three industry departments which exist in study interpreted as comparatively. Accordingly, it is determined that there is a positive relationship between inventory management and profitability in eatables industry. However, it was founded that there is no relationship between inventory management and profitability in weaving industry and wholesale and retail industry.

Keywords: profitability, regression analysis, inventory management, working capital

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Authors: O. Gubnitsyna, O. Zakoretskaya, O. Russova

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It is generally recognized that the main task of modern society is human development. The quality of human capital has been identified as a key driver of economic development in the region. In this article, considered the quality of human capital as one of the main types of social and economic potential for the region’s development. The phenomenon of human capital represents both material and intellectual components of human activity. It is show that the necessary population characterized by certain quantitative and qualitative indicators (qualification and professional structure, education or social general condition and others) and is an necessary resource for the development of the regional economy. The connection of the regional goals with the quality of human capital is discussed in the article and a number of recommendations on its improvement were given. Solving the tasks stated in the article, the authors used analytical and statistical methods of research, scientific publications of domestic and foreign scientists on this issue. The results can be used in this implementation of the concept of regional development.

Keywords: human capital, the quality of human capital, economic development, social general condition

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Authors: Chang Li-Yu

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Aims: This study investigates the impact of psychological capital on the mental health of economically disadvantaged youth and examines whether family cohesion acts as a mediating variable between psychological capital and mental health. Methods: The sample for the study was drawn from the "Taiwan Poverty Children's Database: Survey on the Living Trends of Disadvantaged Children and Youth." The data analysis methods included descriptive statistics, confirmatory factor analysis, and structural equation modeling. Results: The results indicated that both psychological capital and family cohesion can significantly negatively predict mental health, with psychological capital significantly positively predicting family cohesion. The mediation effect analysis revealed that family cohesion fully mediates the relationship between psychological capital and mental health, meaning that psychological capital influences mental health through family cohesion. Recommendations: Based on these findings, the study concretely discusses the significance of psychological capital and family cohesion for the mental health of economically disadvantaged youth and offers suggestions for psychological counseling, therapy, and future research.

Keywords: psychological capital, mental health, economically disadvantaged youth, family cohesion

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Authors: Huang Gui

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There can be little doubt that our world is inexorably moving towards being execution-free. However, China is still on the way until now, in other words, China is still a retentionist state in the term of capital punishment but it is developing domestic criminal law toward that goal (eventual abolition of the capital punishment). The alternative sanction to capital punishment, which would be imposed on a criminal who should have been sentenced to death by law, is a substitute for execution and it should be provided with the basis of the present criminal punishment structure and with the premise of abolishing capital punishment or limiting its use. The aim of this paper, therefore, is to explore a substitute for capital punishment in China. For the criminal sanction system in China, the death penalty with suspension, naturally, is an execution, so it wouldn’t be the substitute; life sentences without parole is out of the tune with punishment policy that promoting correction and rehabilitation; life-imprisonment, which is one of the most severe punishment measure in the sanction system, should be a suitable substitute for executing but it needs to be improved, including the term of imprisonment, the commutation and parole conditions.

Keywords: alternative sanctions, capital punishment, life imprisonment, life imprisonment without parole, China

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Authors: Nellija Titova

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Latvia, Lithuania, and Estonia, as Baltic Countries, have gone throughout transformational changes since 90s leading to the high level of economic development. As countries departing Soviet Union with industrialization policy moved to service economies, the issues of intangibles, human capital, structural capital, and innovation capital have gained impetus. Following the growing demand of practitioners and later academia, intellectual capital as a discipline, which appeared in 90s, became fundamental nowadays. Aim of the paper is to analyze the Baltic companies entering stock markets at Nasdaq Baltic from the perspective of Intellectual Capital. Methodology of the research is based on a longitudinal analysis of the companies using composite ratios of Intellectual Capital and Business performance in the period 2012-2019. Data for 2020 as COVID year) were excluded from the analysis. Findings allow concluding there is a pattern of influence and companies clearly experience the systemic impact of IC on business performance, identifying also time effect investing in intangibles.

Keywords: intellectual capital, impact analysis, longitudinal effect, composite ratios

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Authors: Khaled Ramadan Elbeydi

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This study is carried out to provide an insight into the analysis of the impact of selected macro-economic variables on gross fixed capital formation in Libya using annual data over the period (1970-2010). The importance of this study comes from the ability to show the relative important factors that impact the Libyan gross fixed capital formation. This understanding would give indications to decision makers on which policy they must focus to stimulate the economy. An Auto-Regressive Distributed Lag (ARDL) modeling process is employed to investigate the impact of the gross domestic product, monetary base, and trade openness on gross fixed capital formation in Libya. The results of this study reveal that there is an equilibrium relationship between capital formation and its determinants. The results also indicate that GDP and trade openness largely explain the pattern of capital formation in Libya. The findings and recommendations provide vital information relevant for policy formulation and implementation aimed to improve capital formation in Libya.

Keywords: ARDL, bounds test, capital formation, co-integration, Libya

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Authors: Ugbor Raphael Oluchukwu

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The survey research design was adopted to examine whether liquidity and cash management practices of owner-managed firms in South East Nigeria influence their profitability, growth and survival. Four independent variables (accounting systems, working capital management, budgetary control, and managerial planning) were used in the evaluation which was restricted to eight small firms. Results indicate that one variable, working capital management alone dominate the liquidity perception of owner managers. As a result, owner managers find it difficult to meet maturing business obligations as growth sets in. The study also reveals that the four independent variables have significant impact on the profitability, growth and survival of owner managed firms. Owner managers are therefore advised to undertake regular entrepreneurship training in order to upgrade their liquidity and cash management knowledge and practices to enhance their overall performance.

Keywords: liquidity management, owner-managed firm, profitability, survival

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Authors: Khaled Alkadamani

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Using the simultaneous equations model, this paper examines the impact of capital requirements on bank risk-taking during the recent financial crisis. It also explores the relationship between capital and risk decisions and the impact of economic instability on this relationship. By analyzing the data of 20 Islamic commercial banks between 2004 and 2014 from four Middle East countries, the study concludes a positive effect of regulatory pressure on bank capital in Saudi Arabia and UAE and a negative effect in Jordan and Kuwait. Moreover, the results show a negative impact of regulatory pressure on bank risk taking in Saudi Arabia, Jordan and UAE. The findings reveal also that banks close to the minimum regulatory capital requirements improve their capital adequacy by increasing their capital and decreasing their risk taking. Furthermore, the results show that economic crisis negatively affects bank risk changes, suggesting that banks react to the impact of uncertainty by reducing their risk taking. Finally, the estimations show a negative correlation between banks profitability and capital adequacy ratio (CAR), implying that as more capital is set aside as a buffer for banks safety; it affects the performance of Islamic banks.

Keywords: bank capital, bank regulation, crisis, Islamic banks, risk taking

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Authors: Hassan Medaghri Alaoui

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The accounting and financial reporting system in use today is over 500 years old and has failed to capture the new knowledge and innovation economy in which intangible assets are becoming increasingly valuable. Yet, there has been a growing acknowledgment among the research community as to the relevance of intellectual capital as a major enhancer of an organization’s well-being. Much of the research provides great support for how the IC is instrumental in determining financial and stock performances. As far as we know, this article is one of the earliest exploratory attempts to examine the intellectual capital impact on the corporate performance of the IT sector in Morocco. The purpose of this study is to verify empirically the influence of intellectual capital on firm performance. We have undertaken, over a fifteen-year period, a longitudinal (2005–2019) case study of a prominent payment-solutions company based in a developing economy with global operations.

Keywords: intellectual capital, IT sector, measuring intellectual capital, modified value added intellectual capital coefficient, Morocco

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Authors: Edward C. W. Chan, Benny C. F. Cheung

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In the knowledge economy, the financial indicator is not the unique instrument to gauge the performance of a company. The role of intellectual capital contributing to the company performance is increasing. To measure the company performance due to intellectual capital, the value-added intellectual capital (VAIC) model is adopted to measure the intellectual capital utilisation efficiency of the subject companies. The purpose of this study is to review the readiness of measuring intellectual capital for the Hong Kong listed companies in the property development and property investment industry by using VAIC model. This study covers the financial reports from the representative Hong Kong listed property development companies and property investment companies in the period 2014-2019. The findings from this study indicated the industry is ready for IC measurement employing VAIC framework but not yet ready for using the extended VAIC model.

Keywords: intellectual capital, intellectual capital measurement, property development, property investment, Skandia navigator, VAIC

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Authors: Long Zhang, Ian Hampson, Loretta O' Donnell

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Practitioners in various industries, especially in the finance industry that conventionally benefit from financial capital and resources, appear to be increasingly aware of the importance of human capital resources (HCR) after the 2008 Global Financial Crisis. Scholars from diverse fields have conducted extensive and fruitful research on HCR within their own disciplines. This review suggests that the mainstream of pure quantitative research alone is insufficient to provide precise or comprehensive understanding of HCR. The complex relationships and interactions in HCR call for more integrative and cross-disciplinary research to more holistically understand complex and intricate HCRs. The complex nature of HCR requires deep qualitative exploration based on in-depth data to capture the everydayness of organizational activities and to register its individuality and variety. Despite previous efforts, a systematic and holistic integration of HCR research among multiple disciplines is lacking. Using a retrospective analysis of articles published in the field of economics, finance and management, including psychology, human resources management (HRM), organizational behaviour (OB), industrial and organizational psychology (I-O psychology), organizational theory, and strategy literatures, this study summaries and compares the major perspectives, theories, and findings on HCR research. A careful examination of the progress of the debates of HCR definitions and measurements in distinct disciplines enables an identification of the limitations and gaps in existing research. It enables an analysis of the interplay of these concepts, as well as that of the related concepts of intellectual capital, social capital, and Chinese guanxi, and how they provide a broader perspective on the HCR-related influences on firms’ competitive advantage. The study also introduces the themes of Environmental, Social and Governance, or ESG based investing, as the burgeoning body of ESG studies illustrates the rising importance of human and non-financial capital in investment process. The ESG literature locates HCR into a broader research context of the value of non-financial capital in explaining firm performance. The study concludes with a discussion of new directions for future research that may help advance our knowledge of HCR.

Keywords: human capital resources, social capital, Chinese guanxi, human resources management

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