Volume 19, Issue 1 (3-2024)
J. Mon. Ec. 2024, 19(1): 1-23 |
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Dehghan Khavari S, Mirjalili S H, Esmaeili M. The Impact of Intellectual Capital and Good Corporate Governance on Bank Value with the Mediating Effect of Financial Performance: Evidence from Iran. J. Mon. Ec. 2024; 19 (1) : 1
URL: http://jme.mbri.ac.ir/article-1-670-en.html
URL: http://jme.mbri.ac.ir/article-1-670-en.html
Abstract: (889 Views)
The value of a company is important to shareholders, investors, managers, creditors, and other stakeholders in their assessment of the company's future, its impact on the estimation of investment risk and returns, and stock prices. Therefore, examining the factors affecting a company's value is crucial. Intellectual capital, as a determinant in creating competitive advantage and value, plays a special role and is considered as an intangible asset of companies. Theoretical background and empirical evidence suggest that intellectual capital has a direct impact on a company's value and performance. Moreover, the need for corporate governance arises from the potential conflict of interest between individuals within the company's structure, which can affect its value. As banks’ shares play an important role in the Tehran Stock Exchange, we examine the impact of intellectual capital and good corporate governance on bank value, with the mediating effect of financial performance. The statistical population of this study includes 17 banks listed on the Tehran Stock Exchange over the period from 2017 to 2021. The results indicated that intellectual capital has a significant effect, while corporate governance does not have a significant effect on bank value. Additionally, the mediating effect of financial performance on the relationship between intellectual capital and bank value is accepted based on the Baron and Kenny method for mediation. The findings also show that the mediating effect of financial performance on the relationship between good corporate governance and bank value is confirmed according to the Zhao et al. procedure. Moreover, the results indicated that adding another independent variable relatively increases the explanatory power of the model.
Article number: 1
Keywords: Intellectual Capital, Good Corporate Governance, Financial Performance, Bank Value, Tehran Stock Exchange
Type of Study: Original Research - Empirical |
Subject:
Monetary Economics
Received: 30 Nov 2024 | Accepted: 1 Jun 2025 | Published: 29 Jun 2025
Received: 30 Nov 2024 | Accepted: 1 Jun 2025 | Published: 29 Jun 2025
References
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37. Abdollapur, F., Mohammadi, M., & Daneshyar, F. (2021). Does institutional ownership moderate the impact of intellectual capital on firm value? Journal of Accounting and Management Vision, 4(42), 22-34.
38. Alikhani, R. and Mostakhdem Sadeq Dehbaneh, M. (2016). An Introduction to Company Value. First National Conference on Applied Research in Management, Economics, Accounting and Educational Sciences, Gorgan.
39. Andreeva, T., Garanina, T., Sáenz J., Aramburu, N. and Kianto, A. (2021). Does country environment matter in the relationship between intellectual capital and innovation performance? Journal of Business Research, 136 pp. 263-273 [DOI:10.1016/j.jbusres.2021.07.038]
40. Anik, S., Chariri, A., & Isgiyarta, J. (2021). The Effect of Intellectual Capital and Good Corporate Governance on Financial Performance and Corporate Value: A Case Study in Indonesia. The Journal of Asian Finance, Economics and Business, 8(4), 391-402.
41. Anvari Rostami, A., & Saraji, H. (2005). Measuring intellectual capital and examining the relationship between intellectual capital and the market value of shares of companies listed on the Tehran Stock Exchange. Accounting and Auditing Reviews, 12(1).
42. Baradaran Hassanzadeh, R., Badavar Nahandi, Y., & Hossein Babaei, G. (2012). A Survey of the Relationship between Corporate Governance with Created Shareholder Value (CSV) and Economic Value Added (EVA). Accounting and Auditing Review, 19(2), 1-16. doi: 10.22059/acctgrev.2012.29196
43. Baron, R. M., and D. A. Kenny. (1986). The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations. Journal of Personality and Social Psychology, Vol. 51, No. 6, Pp. 1173. [DOI:10.1037/0022-3514.51.6.1173]
44. Chen, M., Cheng, S. and Hwang, Y. (2005). An empirical investigation of the relationship between intellectual capital and firms' market value and financial performance. Journal of Intellectual Capital. Vol. 6 No. 2, pp. 159-176. [DOI:10.1108/14691930510592771]
45. Dalwai, T., Sing, D., & Ananda, S. (2021). Investigating the relationship between intellectual capital, bank stability and risk-taking in banks. The Review of Economic; 51(3): 393-414.
46. Dehghan Khavari S, Abdorrahimian M, Mirjalili S H, Shayesteh A. (2023). The impact of social responsibility on the efficiency and profitability of banks (Case of Banks Listed in Tehran Stock Exchange). Journal of Money and Economy. 18 (60) : 5 [DOI:10.61186/jme.18.60.371]
47. Dehghan Khavari, S., Hossein Mirjalili, S., Abdorrahimian, M., & Bahari Moghaddam, F. (2023). The Dynamic and Systemic Effect of Asymmetric Information on Stock Returns by Dumitrescu-Hurlin and Generalized Method of Moments (Case of Tehran Stock Exchange). International Journal of Finance & Managerial Accounting, 8(31), 131-140. doi: 10.30495/ijfma.2022.62707.1707
48. Faghani, M., Zarei, H., Saeidi, M. and Darsanj, S. (2019). Intellectual Capital and the Relation between Corporate Governance and Tax Avoidance, Journal of Empirical Research in Accounting, 8(4), 225-251.
49. Firer, S. and Mitchell Williams, S. (2003). Intellectual capital and traditional measures of corporate performance. Journal of Intellectual Capital, Vol. 4 No. 3, pp. 348-360. [DOI:10.1108/14691930310487806]
50. Gerami, A., hamid, S., & ghaforian, A. (2022). The effect of knowledge management on intellectual capital, social capital and company innovation. Journal of Accounting and Management Vision, 5(69), 17-36.
51. Giroud, X. and Mueller, H.M. (2010) Does Corporate Governance Matter in Competitive Industries? Journal of Financial Economics, 95, 312-331. [DOI:10.1016/j.jfineco.2009.10.008]
52. Hassas Yeganeh Y, Moazez A, Khan Hosseini D, Niko Nessati M. (2013). Investigating the effect of corporate governance on the financial performance of companies admitted to the Tehran stock market. Proceedings of the 10th Iranian National Accounting Conference, Tehran, Al-Zahra University (S), 3rd and 4th Khordad, pp. 21-39.
53. Kafili, V., Mirzaei Nezamabad, M., & Hosseinloo, H. (2022). Intellectual Capital and Its Effect on the Financial Performance of Pharmaceutical Companies. Journal of Development and Capital, 7(2), 157-172.
54. Keshtkar Jetani, S. and Dadbeh, F. (2022). The effect of intellectual capital efficiency and corporate governance on financial distress. Management Science Research Quarterly. 3(9), 95-77
55. Lestari, E., Moeljadi, P., Sumiati, A. & Djumahir, F. (2021). Catching Up the Effect Between Corporate Governance, Profitability, Company Size, And Firm ValueWith Intellectual Capital as A Mediation VariablesIn Indo-nesia Stock Exchange. Psychology and education, 58(4), p.1553-6939.
56. Lukviarman, N. (2016). Corporate governance: Menuju penguatan konseptual dan implementasi di Indonesia. Solo: PT Era Adicitra Intermedia.
57. Mehrani, S., & Noruzi, S. (2015). Examining the effect of corporate governance on the relationship between firm value and earnings management. Financial Accounting Knowledge, 2(3), 105-122.
58. Nazir, M.S. & Afza, T. (2018). Does managerial behavior of managing earnings mitigate the relationship between corporate governance and firm value? Evidence from an emerging market. Future Business Journal, 4(1), p. 139-156. [DOI:10.1016/j.fbj.2018.03.001]
59. Niwash MNK, Cek K, Eyupoglu SZ. (2022). Intellectual Capital and Competitive Advantage and the Mediation Effect of Innovation Quality and Speed, and Business Intelligence. Sustainability. 14(6):3497. [DOI:10.3390/su14063497]
60. Noshad A. & Zanjirdar M. (2022). Meta-analysis of intellectual capital and financial performance of the company. Scientific Journal of New Research Approaches in Management and Accounting, 6(22), 374-398.
61. Petty, R. M., Cuganesan, S., Finch, N., & Ford, G. (2009). Intellectual Capital and Valuation: Challenges in the voluntary Disclosure of Value Drivers. Finance and Accountancy. 1(1), 1-7. [DOI:10.2139/ssrn.1490208]
62. Pulic, A. (2004). Intellectual capital - does it create or destroy value? Measuring Business Excellence, Vol. 8 No. 1, pp. 62-68. [DOI:10.1108/13683040410524757]
63. Rahmanian Kushkaki, A. and Badiyab, A. (2023). The effect of corporate governance, profitability and company size on the value of the company with the mediating role of capital. Quarterly Journal of Ethics and Behavior Studies in Accounting and Auditing, 3(1).
64. Sahari, Mohammadreza, & Pourzamani, Z. (2022). Designing a Model of Corporate Governance Characteristics with an Interactive Approach to Strategic Management Accounting and Management Accounting. The financial accounting and auditing researches, 14(55), 121-143.
65. Su, D. & He, X. (2012). Ownership structure, corporate governance and productive efficiency in China. Journal of Productivity Analysis. vol. 38(3), pages 303-318. [DOI:10.1007/s11123-011-0257-8]
66. Subramaniam, M., & Youndt, M. A. (2020). The influence of intellectual capital on the types of innovative capabilities. Academy of Management Journal, 48(3), 450-463. [DOI:10.5465/amj.2005.17407911]
67. Tsai,H. and Gu,Z. (2007). The relationship between institutional ownership and casino firm performance. International Journal of Hospitality Management, 3(26), 517-530 [DOI:10.1016/j.ijhm.2006.02.003]
68. Valizadeh Larijani, Azam, & Khodaee, Mona. (2022). The Moderating Effect of Internal Audit Function Quality on the Relationship between Corporate Governance Quality and Corporate Performance. The financial accounting and auditing researches, 13(4 (52) ), 1-22.
69. Zeinali, A. (2019). Investigating the moderating role of management ownership on the relationship between intellectual capital performance and the value of accepted companies in Tehran Stock Exchange. Journal of Accounting and Management Vision, 2(12), 45-60.
70. Zhao, X., Lynch Jr, J. G., and Q. Chen. (2010). Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis. Journal of Consumer Research, Vol. 37, No. 2, Pp. 197-206. [DOI:10.1086/651257]
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