Steven Firer

Bio: Steven Firer is an academic researcher from University of the Witwatersrand. The author has contributed to research in topics: Intellectual capital & Audit. The author has an hindex of 7, co-authored 11 publications receiving 1242 citations. Previous affiliations of Steven Firer include Monash University, South Africa campus.

Intellectual capital and traditional measures of corporate performance

Abstract: The principal purpose of this study is to investigate the association between the efficiency of value added (VA) by the major components of a firm's resource base (physical capital, human capital and structural capital) and three traditional dimensions of corporate performance: profitability, productivity, and market valuation. Data are drawn from a sample of 75 publicly traded firms from South Africa from business sectors heavily reliant on intellectual capital. Empirical analysis is conducted using correlation and linear multiple regression analysis. Findings from the empirical analysis indicate that associations between the efficiency of VA by a firm's major resource bases and profitability, productivity and market valuation are generally limited and mixed. Overall, the empirical findings suggest that physical capital remains the most significant underlying resource of corporate performance in South Africa despite efforts to increase the nation's intellectual capital base.

Testing the relationship between intellectual capital and a company's performance : evidence from South Africa

Abstract: The aim of this study was to investigate whether the performance of a company’s intellectual capital can explain organisational performance. The dimensions of a company’s performance are (1) profitability, (2) productivity and (3) market valuation. Data were obtained from a sample of 65 companies that are listed on the JSE Securities Exchange (high knowledge‐base sectors). Findings from the empirical analysis indicate that the relationships between the performance of a company’s intellectual capital and (1) profitability, (2) productivity and (3) market valuation are informative but varied. The empirical findings suggest that the performance of a company’s intellectual capital can explain profitability and productivity, but not market valuation.

Board structure and intellectual capital performance in South Africa

Abstract: This article examines the relationship between board structure and the intellectual capital performance of South African publicly listed companies. Board composition was analysed in terms of gender and ethnic diversity, using cross‐sectional multiple regressions. The population of the study included all South African companies listed on the JSE Securities Exchange during 2003. The final sample, after the transformation of the data, consisted of 117 companies. The empirical results indicated a positive significant relationship between the percentage of ethnic members on the companies’ boards of directors and intellectual capital performance. Based on the results of this study, it is argued that South African publicly listed companies may be able to enhance their intellectual capital performance by using an ethnically diverse board of directors.

Firm ownership structure and intellectual capital disclosures

Abstract: The primary purpose of this study is to investigate the association between three ownership structure characteristics and voluntary intellectual capital (IC) disclosure practices Data for this study is hand collected from the 2000 annual reports of 390 Singapore publicly traded firms Empirical results indicate Singapore publicly listed firms more closely owned were less likely to voluntarily disclose IC related information than counterparts with a more diffused ownership base Also, those firms with a high level of executive director ownership were less inclined to voluntarily disclose IC related information than those where executive directors had smaller holdings in the entity Finally, findings indicate government linked corporations (GLCs) will likely make more voluntary IC disclosures than non-GLCs Overall, this study makes several unique contributions to the literature First, the present study provides the first large-scale analysis of evidence of the association between ownership structure and

An empirical examination of the value relevance of intellectual capital using the Ohlson (1995) valuation model

Abstract: The debate on the determinants of firm value is ongoing; and the increasing gap in the book‐to‐market ratio (Lev & Sougiannis 1999) has yet to be explained in the financial literature. This article contributes to the debate by examining whether intellectual capital measured using the value added intellectual coefficient (VAICTM) (Pulic 1998) contributes to the explanation of the book‐to‐market ratio. This study used Ohlson’s 1995 valuation model and JSE Securities Exchange (SA) (JSE) data in an attempt to identify whether the book value of assets, accounting (accrual) earnings and VAICTM explain the behaviour of South African share prices. The panel data least squares model results indicate a significant relationship between share prices three months after year end, and abnormal earnings, abnormal cash dividends, book value of assets, the capital employed coefficient, and the human capital coefficient.

An empirical investigation of the relationship between intellectual capital and firms’ market value and financial performance

Abstract: Purpose – The purpose of this article is to investigate empirically the relation between the value creation efficiency and firms’ market valuation and financial performance.Design/methodology/approach – Using data drawn from Taiwanese listed companies and Pulic's Value Added Intellectual Coefficient (VAIC™) as the efficiency measure of capital employed and intellectual capital, the authors construct regression models to examine the relationship between corporate value creation efficiency and firms’ market‐to‐book value ratios, and explore the relation between intellectual capital and firms’ current as well as future financial performance.Findings – The results support the hypothesis that firms’ intellectual capital has a positive impact on market value and financial performance, and may be an indicator for future financial performance. In addition, the authors found investors may place different value on the three components of value creation efficiency (physical capital, human capital, and structural cap...

Intellectual capital and financial returns of companies

Abstract: Purpose – The purpose of the paper is to investigate the association between the intellectual capital (IC) of firms and their financial performance.Design/methodology/approach – The paper uses the Pulic framework, has an Asian focus, and draws on data from 150 publicly listed companies on the Singapore Exchange. It is an empirical study using partial least squares (PLS) for the data analysis. The paper tests four elements of IC and company performance.Findings – The findings show that: IC and company performance are positively related; IC is correlated to future company performance; the rate of growth of a company's IC is positively related to the company's performance; and the contribution of IC to company performance differs by industry.Research limitations/implications – The data sample is restricted to 150 companies listed on the Singapore Exchange between the years 2000 and 2002.Practical implications – IC is an area of interest to numerous parties, such as shareholders, institutional investors, scho...

Reflections and projections: A decade of Intellectual Capital Accounting Research

Abstract: The purpose of this paper is to review and critique the field of Intellectual Capital Accounting Research (ICAR). The literature indicates that an organisational and business revolution is in progress concerning the need to understand the value of knowledge resources and how to manage them. The paper explores the field of ICAR by examining a decade of published research since Petty and Guthrie's (2000) seminal paper on ICA, “Intellectual capital literature review: Measurement, reporting and management” as published in the Journal of Intellectual Capital. The paper has four specific contributions. The first contribution is to identify the field of scholarship associated with ICAR. The second is to provide a comprehensive picture of what has happened in the field of ICAR over the past decade. Third, it provides evidence as to how and why the field of ICAR is changing. Fourth, it highlights areas for future research and policy developments. From these four contributions our definition of Intellectual Capital Accounting (ICA) emerges. That is, ICA is an accounting, reporting and management technology of relevance to organisations to understand and manage knowledge resources. It can account and report on the size and development of knowledge resources such as employee competencies, customer relations, financial relationships and communication and information technologies. Additionally, the analysis highlights several interesting patterns and worrying trends in the field of ICAR.

Intellectual capital and business performance in the pharmaceutical sector of Jordan

Abstract: Purpose – The purpose of this study is to empirically test the relationship between intellectual capital (i.e. human capital, structural capital, relational capital) and business performance within the pharmaceutical sector of Jordan.Design/methodology/approach – A valid research instrument was utilized to conduct a survey of 132 top‐ and middle‐level managers from all 15 members of the Jordanian Association of Pharmaceutical Manufacturers.Findings – A correlation and path analysis were conducted to ascertain the validity of the measures and models. Statistical support was found for the hypothesized relationships.Research limitations/implications – The findings offer valuable insights on the generalizability of intellectual capital in a novel research setting.Practical implications – Intellectual capital measurement is of primary interest for senior executives of pharmaceutical firms in Jordan.Originality/value – The research reported is among only a few to investigate the issue of intellectual capital in...

The impact of intellectual capital on firms' market value and financial performance

Abstract: Purpose – Intellectual capital (IC) shows a significant growing acceptance as a worthy topic of academic investigation and practical implication. The purpose of this study is to examine the impact of IC on firms' market value and financial performance.Design/methodology/approach – The empirical data were drawn from a panel consisting of 96 Greek companies listed in the Athens Stock Exchange (ASE), from four different economic sectors, observed over the three‐year period of 2006 to 2008. Various regression models were examined in order to test the hypotheses included in the proposed conceptual framework.Findings – Results failed to support most of the hypotheses; only concluding that there is a statistically significant relationship between human capital efficiency and financial performance. Despite the fact that IC is increasingly recognised as an important strategic asset for sustainable corporate competitive advantage, the results of the present study give rise to various arguments, criticism and furthe...