Moderating Effect of Intellectual Capital: The Influence of a Green Performance on Corporate Value
DOI:
https://doi.org/10.30738/ja.v12i1.4305Keywords:
Green Performance; intellectual capital; corporate value; value added intellectual capital (VAIC): resources-based view.Abstract
This study investigates the moderating role of intellectual capital in the relationship between green performance and corporate value, drawing on resource-based views and stakeholder theory. Using 264 panel data from Indonesian public companies (2017-2022), we measure green performance with the PROPER index, intellectual capital using the Value-Added Intellectual Coefficient (VAIC), and corporate value using Tobin's Q. Our findings support the positive effects of both green performance and intellectual capital on corporate value. However, the moderating effect of intellectual capital, while positive, was not statistically significant. These findings emphasize the importance of environmental initiatives and intellectual capital management in creating corporate value, suggesting potential synergies between environmental performance and intellectual resources. Our study contributes to the literature on strategic management and environmental sustainability by elucidating the complex interplay between these factors in an emerging market context. The findings have important implications for managers in optimizing investments to enhance corporate value.
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References
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Albertini, E. (2013). Does Environmental Management Improve Financial Performance? A Meta-Analytical Review. Organization & Environment, 26(4), 431–457. https://doi.org/10.1177/1086026613510301
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Bontis, N. (1998). Intellectual capital: an exploratory study that develops measures and models. Management Decision, 36(2), 63–76. https://doi.org/10.1108/00251749810204142
Chen, M., Cheng, S., & Hwang, Y. (2005). An empirical investigation of the relationship between intellectual capital and firms’ market value and financial performance. Journal of Intellectual Capital, 6(2), 159–176. https://doi.org/10.1108/14691930510592771
Chen, Y.-S. (2008). The Positive Effect of Green Intellectual Capital on Competitive Advantages of Firms. Journal of Business Ethics, 77(3), 271–286. https://doi.org/10.1007/s10551-006-9349-1
Chen, Y.-S., & Chang, C.-H. (2013). The Determinants of Green Product Development Performance: Green Dynamic Capabilities, Green Transformational Leadership, and Green Creativity. Journal of Business Ethics, 116(1), 107–119. https://doi.org/10.1007/s10551-012-1452-x
Chung, K. H., & Pruitt, S. W. (1994). A Simple Approximation of Tobin’s q. Financial Management, 23(3), 70. https://doi.org/10.2307/3665623
Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations and Society, 33(4–5), 303–327. https://doi.org/10.1016/j.aos.2007.05.003
Claverâ€Cortés, E., Dolores Lópezâ€Gamero, M., Molinaâ€AzorÃn, J. F., & Del Carmen Zaragozaâ€Sáez, P. (2007). Intellectual and environmental capital. Journal of Intellectual Capital, 8(1), 171–182. https://doi.org/10.1108/14691930710715123
Coad, A., Segarra, A., & Teruel, M. (2013). Like milk or wine: Does firm performance improve with age? Structural Change and Economic Dynamics, 24, 173–189. https://doi.org/10.1016/j.strueco.2012.07.002
Crook, T. R., Todd, S. Y., Combs, J. G., Woehr, D. J., & Ketchen, D. J. (2011). Does human capital matter? A meta-analysis of the relationship between human capital and firm performance. Journal of Applied Psychology, 96(3), 443–456. https://doi.org/10.1037/a0022147
Dang, C., (Frank) Li, Z., & Yang, C. (2018). Measuring firm size in empirical corporate finance. Journal of Banking & Finance, 86, 159–176. https://doi.org/10.1016/j.jbankfin.2017.09.006
Delgado-Verde, M., Amores-Salvadó, J., MartÃn-de Castro, G., & Navas-López, J. E. (2014). Green intellectual capital and environmental product innovation: the mediating role of green social capital. Knowledge Management Research & Practice, 12(3), 261–275. https://doi.org/10.1057/kmrp.2014.1
Donaldson, T., & Preston, L. E. (1995). The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications. The Academy of Management Review, 20(1), 65. https://doi.org/10.2307/258887
Edvinsson, L., & Malone, M. S. (1997). Intellectual Capital: Realizing Your Company’s True Value by Finding Its Hidden Brainpower. Harper Business.
Firer, S., & Mitchell Williams, S. (2003). Intellectual capital and traditional measures of corporate performance. Journal of Intellectual Capital, 4(3), 348–360. https://doi.org/10.1108/14691930310487806
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman.
Gaio, C., & Pinto, I. (2018). The role of state ownership on earnings quality: evidence across public and private European firms. Journal of Applied Accounting Research, 19(2), 312–332. https://doi.org/10.1108/JAAR-07-2016-0067
Hair, J. F. H., Black, W. C., Babin, B, J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Prentice Hall.
Hart, S. L. (1995). A Natural-Resource-Based View of the Firm. The Academy of Management Review, 20(4), 986. https://doi.org/10.2307/258963
Hart, S. L., & Dowell, G. (2011). Invited Editorial: A Natural-Resource-Based View of the Firm. Journal of Management, 37(5), 1464–1479. https://doi.org/10.1177/0149206310390219
Hassel, L., Nilsson, H., & Nyquist, S. (2005). The value relevance of environmental performance. European Accounting Review, 14(1), 41–61. https://doi.org/10.1080/0963818042000279722
Hutajulu, M. A., Prawansa, D. A. S., & Reni, A. (2023). The Influence Of Liquidity And Company Size On The Value Of Automotive Subsector Companies In The Indonesian Stock Exchange. Marginal Journal Of Management, Accounting, General Finance And International Economic Issues, 2(3), 748–754. https://doi.org/10.55047/marginal.v2i3.723
King, A. A., & Lenox, M. J. (2001). Does It Really Pay to Be Green? An Empirical Study of Firm Environmental and Financial Performance: An Empirical Study of Firm Environmental and Financial Performance. Journal of Industrial Ecology, 5(1), 105–116. https://doi.org/10.1162/108819801753358526
Klassen, R. D., & McLaughlin, C. P. (1996). The Impact of Environmental Management on Firm Performance. Management Science, 42(8), 1199–1214. https://doi.org/10.1287/mnsc.42.8.1199
Lo, S., & Sheu, H. (2007). Is Corporate Sustainability a Valueâ€Increasing Strategy for Business? Corporate Governance: An International Review, 15(2), 345–358. https://doi.org/10.1111/j.1467-8683.2007.00565.x
Loderer, C. F., & Waelchli, U. (2010). Firm Age and Performance. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1342248
Maji, S. G., & Goswami, M. (2016). Intellectual capital and firm performance in emerging economies: the case of India. Review of International Business and Strategy, 26(3), 410–430. https://doi.org/10.1108/RIBS-03-2015-0019
Malighetti, P., Meoli, M., Paleari, S., & Redondi, R. (2011). Value determinants in the aviation industry. Transportation Research Part E: Logistics and Transportation Review, 47(3), 359–370. https://doi.org/10.1016/j.tre.2010.11.007
MartÃn-de-Castro, G., Delgado-Verde, M., López-Sáez, P., & Navas-López, J. E. (2011). Towards ‘An Intellectual Capital-Based View of the Firm’: Origins and Nature. Journal of Business Ethics, 98(4), 649–662. https://doi.org/10.1007/s10551-010-0644-5
Nimtrakoon, S. (2015). The relationship between intellectual capital, firms’ market value and financial performance. Journal of Intellectual Capital, 16(3), 587–618. https://doi.org/10.1108/JIC-09-2014-0104
Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate Social and Financial Performance: A Meta-Analysis. Organization Studies, 24(3), 403–441. https://doi.org/10.1177/0170840603024003910
Porter, M. E., & Linde, C. van der. (1995). Toward a New Conception of the Environment-Competitiveness Relationship. Journal of Economic Perspectives, 9(4), 97–118. https://doi.org/10.1257/jep.9.4.97
Pratama, A. B. A., & Wiksuana, B. I. G. (2018). Pengaruh Firm Size Dan Profitabilitas Terhadap Nilai Perusahaan Dengan Struktur Modal Sebagai Variabel Mediasi. E-Jurnal Ekonomi Dan Bisnis Universitas Udayana, 1289. https://doi.org/10.24843/EEB.2018.v07.i05.p03
Pulic, A. (2000). VAICTM an accounting tool for IC management. International Journal of Technology Management, 20(5/6/7/8), 702. https://doi.org/10.1504/IJTM.2000.002891
Russo, M. V., & Fouts, P. A. (1997). A Resource-Based Perspective on Corporate Environmental Performance and Profitability. Academy of Management Journal, 40(3), 534–559. https://doi.org/10.2307/257052
Sailendra, S. (2023a). Moderating Effect of Green Image: The Influence of Beta on Stock Return. Journal of Business Management and Economic Development, 1(02), 209–220. https://doi.org/10.59653/jbmed.v1i02.104
Sailendra, S. (2023b). The Influence of Green Performance and Intellectual Capital on Tax Avoidance. Journal of Business Management and Economic Development, 1(03), 565–576. https://doi.org/10.59653/jbmed.v1i03.639
Sailendra, S., Murwaningsari, E., & Mayangsari, S. (2019). The Influence of Free Float Shares and Audit Quality on Company Performance: Evidence from Indonesia. Audit Financiar, 17(154), 274–282. https://doi.org/10.20869/AUDITF/2019/154/010
Smriti, N., & Das, N. (2018). The impact of intellectual capital on firm performance: a study of Indian firms listed in COSPI. Journal of Intellectual Capital, 19(5), 935–964. https://doi.org/10.1108/JIC-11-2017-0156
Stefan, A., & Paul, L. (2008). Does It Pay to Be Green? A Systematic Overview. Academy of Management Perspectives, 22(4), 45–62. https://doi.org/10.5465/amp.2008.35590353
Surroca, J., Tribó, J. A., & Waddock, S. (2010). Corporate responsibility and financial performance: the role of intangible resources. Strategic Management Journal, 31(5), 463–490. https://doi.org/10.1002/smj.820
Teece, D. J. (2007). Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640
Telle, K. (2006). “It Pays to be Green†– A Premature Conclusion? Environmental and Resource Economics, 35(3), 195–220. https://doi.org/10.1007/s10640-006-9013-3
WADDOCK, S. A., & GRAVES, S. B. (1997). THE CORPORATE SOCIAL PERFORMANCE-FINANCIAL PERFORMANCE LINK. Strategic Management Journal, 18(4), 303–319. https://doi.org/10.1002/(SICI)1097-0266(199704)18:4<303::AID-SMJ869>3.0.CO;2-G
Wernerfelt, B. (1984). A resourceâ€based view of the firm. Strategic Management Journal, 5(2), 171–180. https://doi.org/10.1002/smj.4250050207
Xu, J., & Wang, B. (2018). Intellectual Capital, Financial Performance and Companies’ Sustainable Growth: Evidence from the Korean Manufacturing Industry. Sustainability, 10(12), 4651. https://doi.org/10.3390/su10124651
Zhao, X., & Murrell, A. J. (2016). Revisiting the corporate social performanceâ€financial performance link: A replication of Waddock and Graves. Strategic Management Journal, 37(11), 2378–2388. https://doi.org/10.1002/smj.2579
Albertini, E. (2013). Does Environmental Management Improve Financial Performance? A Meta-Analytical Review. Organization & Environment, 26(4), 431–457. https://doi.org/10.1177/1086026613510301
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Bontis, N. (1998). Intellectual capital: an exploratory study that develops measures and models. Management Decision, 36(2), 63–76. https://doi.org/10.1108/00251749810204142
Chen, M., Cheng, S., & Hwang, Y. (2005). An empirical investigation of the relationship between intellectual capital and firms’ market value and financial performance. Journal of Intellectual Capital, 6(2), 159–176. https://doi.org/10.1108/14691930510592771
Chen, Y.-S. (2008). The Positive Effect of Green Intellectual Capital on Competitive Advantages of Firms. Journal of Business Ethics, 77(3), 271–286. https://doi.org/10.1007/s10551-006-9349-1
Chen, Y.-S., & Chang, C.-H. (2013). The Determinants of Green Product Development Performance: Green Dynamic Capabilities, Green Transformational Leadership, and Green Creativity. Journal of Business Ethics, 116(1), 107–119. https://doi.org/10.1007/s10551-012-1452-x
Chung, K. H., & Pruitt, S. W. (1994). A Simple Approximation of Tobin’s q. Financial Management, 23(3), 70. https://doi.org/10.2307/3665623
Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations and Society, 33(4–5), 303–327. https://doi.org/10.1016/j.aos.2007.05.003
Claverâ€Cortés, E., Dolores Lópezâ€Gamero, M., Molinaâ€AzorÃn, J. F., & Del Carmen Zaragozaâ€Sáez, P. (2007). Intellectual and environmental capital. Journal of Intellectual Capital, 8(1), 171–182. https://doi.org/10.1108/14691930710715123
Coad, A., Segarra, A., & Teruel, M. (2013). Like milk or wine: Does firm performance improve with age? Structural Change and Economic Dynamics, 24, 173–189. https://doi.org/10.1016/j.strueco.2012.07.002
Crook, T. R., Todd, S. Y., Combs, J. G., Woehr, D. J., & Ketchen, D. J. (2011). Does human capital matter? A meta-analysis of the relationship between human capital and firm performance. Journal of Applied Psychology, 96(3), 443–456. https://doi.org/10.1037/a0022147
Dang, C., (Frank) Li, Z., & Yang, C. (2018). Measuring firm size in empirical corporate finance. Journal of Banking & Finance, 86, 159–176. https://doi.org/10.1016/j.jbankfin.2017.09.006
Delgado-Verde, M., Amores-Salvadó, J., MartÃn-de Castro, G., & Navas-López, J. E. (2014). Green intellectual capital and environmental product innovation: the mediating role of green social capital. Knowledge Management Research & Practice, 12(3), 261–275. https://doi.org/10.1057/kmrp.2014.1
Donaldson, T., & Preston, L. E. (1995). The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications. The Academy of Management Review, 20(1), 65. https://doi.org/10.2307/258887
Edvinsson, L., & Malone, M. S. (1997). Intellectual Capital: Realizing Your Company’s True Value by Finding Its Hidden Brainpower. Harper Business.
Firer, S., & Mitchell Williams, S. (2003). Intellectual capital and traditional measures of corporate performance. Journal of Intellectual Capital, 4(3), 348–360. https://doi.org/10.1108/14691930310487806
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman.
Gaio, C., & Pinto, I. (2018). The role of state ownership on earnings quality: evidence across public and private European firms. Journal of Applied Accounting Research, 19(2), 312–332. https://doi.org/10.1108/JAAR-07-2016-0067
Hair, J. F. H., Black, W. C., Babin, B, J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Prentice Hall.
Hart, S. L. (1995). A Natural-Resource-Based View of the Firm. The Academy of Management Review, 20(4), 986. https://doi.org/10.2307/258963
Hart, S. L., & Dowell, G. (2011). Invited Editorial: A Natural-Resource-Based View of the Firm. Journal of Management, 37(5), 1464–1479. https://doi.org/10.1177/0149206310390219
Hassel, L., Nilsson, H., & Nyquist, S. (2005). The value relevance of environmental performance. European Accounting Review, 14(1), 41–61. https://doi.org/10.1080/0963818042000279722
Hutajulu, M. A., Prawansa, D. A. S., & Reni, A. (2023). The Influence Of Liquidity And Company Size On The Value Of Automotive Subsector Companies In The Indonesian Stock Exchange. Marginal Journal Of Management, Accounting, General Finance And International Economic Issues, 2(3), 748–754. https://doi.org/10.55047/marginal.v2i3.723
King, A. A., & Lenox, M. J. (2001). Does It Really Pay to Be Green? An Empirical Study of Firm Environmental and Financial Performance: An Empirical Study of Firm Environmental and Financial Performance. Journal of Industrial Ecology, 5(1), 105–116. https://doi.org/10.1162/108819801753358526
Klassen, R. D., & McLaughlin, C. P. (1996). The Impact of Environmental Management on Firm Performance. Management Science, 42(8), 1199–1214. https://doi.org/10.1287/mnsc.42.8.1199
Lo, S., & Sheu, H. (2007). Is Corporate Sustainability a Valueâ€Increasing Strategy for Business? Corporate Governance: An International Review, 15(2), 345–358. https://doi.org/10.1111/j.1467-8683.2007.00565.x
Loderer, C. F., & Waelchli, U. (2010). Firm Age and Performance. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1342248
Maji, S. G., & Goswami, M. (2016). Intellectual capital and firm performance in emerging economies: the case of India. Review of International Business and Strategy, 26(3), 410–430. https://doi.org/10.1108/RIBS-03-2015-0019
Malighetti, P., Meoli, M., Paleari, S., & Redondi, R. (2011). Value determinants in the aviation industry. Transportation Research Part E: Logistics and Transportation Review, 47(3), 359–370. https://doi.org/10.1016/j.tre.2010.11.007
MartÃn-de-Castro, G., Delgado-Verde, M., López-Sáez, P., & Navas-López, J. E. (2011). Towards ‘An Intellectual Capital-Based View of the Firm’: Origins and Nature. Journal of Business Ethics, 98(4), 649–662. https://doi.org/10.1007/s10551-010-0644-5
Nimtrakoon, S. (2015). The relationship between intellectual capital, firms’ market value and financial performance. Journal of Intellectual Capital, 16(3), 587–618. https://doi.org/10.1108/JIC-09-2014-0104
Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate Social and Financial Performance: A Meta-Analysis. Organization Studies, 24(3), 403–441. https://doi.org/10.1177/0170840603024003910
Porter, M. E., & Linde, C. van der. (1995). Toward a New Conception of the Environment-Competitiveness Relationship. Journal of Economic Perspectives, 9(4), 97–118. https://doi.org/10.1257/jep.9.4.97
Pratama, A. B. A., & Wiksuana, B. I. G. (2018). Pengaruh Firm Size Dan Profitabilitas Terhadap Nilai Perusahaan Dengan Struktur Modal Sebagai Variabel Mediasi. E-Jurnal Ekonomi Dan Bisnis Universitas Udayana, 1289. https://doi.org/10.24843/EEB.2018.v07.i05.p03
Pulic, A. (2000). VAICTM an accounting tool for IC management. International Journal of Technology Management, 20(5/6/7/8), 702. https://doi.org/10.1504/IJTM.2000.002891
Russo, M. V., & Fouts, P. A. (1997). A Resource-Based Perspective on Corporate Environmental Performance and Profitability. Academy of Management Journal, 40(3), 534–559. https://doi.org/10.2307/257052
Sailendra, S. (2023a). Moderating Effect of Green Image: The Influence of Beta on Stock Return. Journal of Business Management and Economic Development, 1(02), 209–220. https://doi.org/10.59653/jbmed.v1i02.104
Sailendra, S. (2023b). The Influence of Green Performance and Intellectual Capital on Tax Avoidance. Journal of Business Management and Economic Development, 1(03), 565–576. https://doi.org/10.59653/jbmed.v1i03.639
Sailendra, S., Murwaningsari, E., & Mayangsari, S. (2019). The Influence of Free Float Shares and Audit Quality on Company Performance: Evidence from Indonesia. Audit Financiar, 17(154), 274–282. https://doi.org/10.20869/AUDITF/2019/154/010
Smriti, N., & Das, N. (2018). The impact of intellectual capital on firm performance: a study of Indian firms listed in COSPI. Journal of Intellectual Capital, 19(5), 935–964. https://doi.org/10.1108/JIC-11-2017-0156
Stefan, A., & Paul, L. (2008). Does It Pay to Be Green? A Systematic Overview. Academy of Management Perspectives, 22(4), 45–62. https://doi.org/10.5465/amp.2008.35590353
Surroca, J., Tribó, J. A., & Waddock, S. (2010). Corporate responsibility and financial performance: the role of intangible resources. Strategic Management Journal, 31(5), 463–490. https://doi.org/10.1002/smj.820
Teece, D. J. (2007). Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640
Telle, K. (2006). “It Pays to be Green†– A Premature Conclusion? Environmental and Resource Economics, 35(3), 195–220. https://doi.org/10.1007/s10640-006-9013-3
WADDOCK, S. A., & GRAVES, S. B. (1997). THE CORPORATE SOCIAL PERFORMANCE-FINANCIAL PERFORMANCE LINK. Strategic Management Journal, 18(4), 303–319. https://doi.org/10.1002/(SICI)1097-0266(199704)18:4<303::AID-SMJ869>3.0.CO;2-G
Wernerfelt, B. (1984). A resourceâ€based view of the firm. Strategic Management Journal, 5(2), 171–180. https://doi.org/10.1002/smj.4250050207
Xu, J., & Wang, B. (2018). Intellectual Capital, Financial Performance and Companies’ Sustainable Growth: Evidence from the Korean Manufacturing Industry. Sustainability, 10(12), 4651. https://doi.org/10.3390/su10124651
Zhao, X., & Murrell, A. J. (2016). Revisiting the corporate social performanceâ€financial performance link: A replication of Waddock and Graves. Strategic Management Journal, 37(11), 2378–2388. https://doi.org/10.1002/smj.2579
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2024-06-30
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