Moderating role of intellectual capital on capital structure and corporate performance of high technology industry in China and United States

As one of the knowledge-intensive industries in today's knowledge-based economy, the high technology industry is becoming increasingly competitive. How to improve corporate performance is a key concern for most companies. Since the Modigliani-Miller (MM) Theorem was proposed, research on the...

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Main Author:	Shiyu, Li
Format:	Thesis
Language:	English
Published:	2023
Subjects:	High technology industries Intellectual capital Organizational effectiveness
Online Access:	http://psasir.upm.edu.my/id/eprint/114131/1/114131.pdf
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id	my-upm-ir.114131
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spelling	my-upm-ir.1141312024-12-06T02:46:44Z Moderating role of intellectual capital on capital structure and corporate performance of high technology industry in China and United States 2023-01 Shiyu, Li As one of the knowledge-intensive industries in today's knowledge-based economy, the high technology industry is becoming increasingly competitive. How to improve corporate performance is a key concern for most companies. Since the Modigliani-Miller (MM) Theorem was proposed, research on the relationship between capital structure and corporate performance has been a popular academic topic. At the same time, intellectual capital is the core resource of knowledge considered as one of the core capital forms of high-tech companies. Its importance in creating value and maintaining long-term competitive advantage for corporate becomes abundantly obvious. Therefore, it is of great practical significance to explore the relationship between capital structure and corporate performance of high-tech companies from the perspective of intellectual capital. The research background is based on the US-China trade war. Since high-tech industry is the most affected industry in this trade war, the sample is selected from the top 200 listed companies in high-tech industry with the highest market capitalization in two countries, totaling 400 companies. The balanced dataset employed in the study covers a period from the year 2017 to 2019 and semiannuals were used as a study period, so a total of six study periods. The data analysis consisted of two stages. The first stage is to calculate firm efficiency as a measure of corporate performance using the Data Envelopment Analysis (DEA). The second analysis step is to use the static panel regression analysis by Pooled Ordinary Least Square (POLS), Fixed Effect (FE), and Random Effect (RE) models. Subsequently, the Generalized Method of Moments (GMM) is adopted as a further robustness check test for the possibility of endogeneity in the models. The results of the study reveal a significant relationship between debt to asset and long-term debt to equity as important measures of capital structure and corporate performance. Furthermore, human capital efficiency and value added intellectual coefficient can both have a positive and significant impact on corporate performance. Moreover, the statistics indicate that intellectual capital has a significant moderating effect between capital structure and corporate performance. The study concludes that the capital structure and intellectual capital have significant impact on corporate performance. Furthermore, the study presents evidence on the moderating role of intellectual capital on the link between capital structure and corporate performance. The study contributes to the existing body of knowledge, empirical and practice. Firstly, this comparative research contributes in enlarging the existing literature on the relationship among capital structure and corporate performance of the high-tech industry in the economic context of the US-China trade war. Secondly, the using of Value Added Intellectual Coefficient (VAIC) to measure intellectual capital establishes a performance and intellectual capital evaluation index system that meets the characteristics of this type of enterprise, further laying the foundation of a certain knowledge system for the development of high-tech industry. Finally, the findings suggest that high-tech company managers should pay more attention to intellectual capital, so that intellectual capital can be employed efficiently and effectively and that the impact of capital structure on the company can be adjusted to better contribute to business operations. High technology industries Intellectual capital Organizational effectiveness 2023-01 Thesis http://psasir.upm.edu.my/id/eprint/114131/ http://psasir.upm.edu.my/id/eprint/114131/1/114131.pdf text en public http://ethesis.upm.edu.my/id/eprint/18090 doctoral Universiti Putra Malaysia High technology industries Intellectual capital Organizational effectiveness Ong, Tze San
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English
advisor	Ong, Tze San
topic	High technology industries Intellectual capital Organizational effectiveness
spellingShingle	High technology industries Intellectual capital Organizational effectiveness Shiyu, Li Moderating role of intellectual capital on capital structure and corporate performance of high technology industry in China and United States
description	As one of the knowledge-intensive industries in today's knowledge-based economy, the high technology industry is becoming increasingly competitive. How to improve corporate performance is a key concern for most companies. Since the Modigliani-Miller (MM) Theorem was proposed, research on the relationship between capital structure and corporate performance has been a popular academic topic. At the same time, intellectual capital is the core resource of knowledge considered as one of the core capital forms of high-tech companies. Its importance in creating value and maintaining long-term competitive advantage for corporate becomes abundantly obvious. Therefore, it is of great practical significance to explore the relationship between capital structure and corporate performance of high-tech companies from the perspective of intellectual capital. The research background is based on the US-China trade war. Since high-tech industry is the most affected industry in this trade war, the sample is selected from the top 200 listed companies in high-tech industry with the highest market capitalization in two countries, totaling 400 companies. The balanced dataset employed in the study covers a period from the year 2017 to 2019 and semiannuals were used as a study period, so a total of six study periods. The data analysis consisted of two stages. The first stage is to calculate firm efficiency as a measure of corporate performance using the Data Envelopment Analysis (DEA). The second analysis step is to use the static panel regression analysis by Pooled Ordinary Least Square (POLS), Fixed Effect (FE), and Random Effect (RE) models. Subsequently, the Generalized Method of Moments (GMM) is adopted as a further robustness check test for the possibility of endogeneity in the models. The results of the study reveal a significant relationship between debt to asset and long-term debt to equity as important measures of capital structure and corporate performance. Furthermore, human capital efficiency and value added intellectual coefficient can both have a positive and significant impact on corporate performance. Moreover, the statistics indicate that intellectual capital has a significant moderating effect between capital structure and corporate performance. The study concludes that the capital structure and intellectual capital have significant impact on corporate performance. Furthermore, the study presents evidence on the moderating role of intellectual capital on the link between capital structure and corporate performance. The study contributes to the existing body of knowledge, empirical and practice. Firstly, this comparative research contributes in enlarging the existing literature on the relationship among capital structure and corporate performance of the high-tech industry in the economic context of the US-China trade war. Secondly, the using of Value Added Intellectual Coefficient (VAIC) to measure intellectual capital establishes a performance and intellectual capital evaluation index system that meets the characteristics of this type of enterprise, further laying the foundation of a certain knowledge system for the development of high-tech industry. Finally, the findings suggest that high-tech company managers should pay more attention to intellectual capital, so that intellectual capital can be employed efficiently and effectively and that the impact of capital structure on the company can be adjusted to better contribute to business operations.
format	Thesis
qualification_level	Doctorate
author	Shiyu, Li
author_facet	Shiyu, Li
author_sort	Shiyu, Li
title	Moderating role of intellectual capital on capital structure and corporate performance of high technology industry in China and United States
title_short	Moderating role of intellectual capital on capital structure and corporate performance of high technology industry in China and United States
title_full	Moderating role of intellectual capital on capital structure and corporate performance of high technology industry in China and United States
title_fullStr	Moderating role of intellectual capital on capital structure and corporate performance of high technology industry in China and United States
title_full_unstemmed	Moderating role of intellectual capital on capital structure and corporate performance of high technology industry in China and United States
title_sort	moderating role of intellectual capital on capital structure and corporate performance of high technology industry in china and united states
granting_institution	Universiti Putra Malaysia
publishDate	2023
url	http://psasir.upm.edu.my/id/eprint/114131/1/114131.pdf
_version_	1818586186610900992

Moderating role of intellectual capital on capital structure and corporate performance of high technology industry in China and United States

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