Intellectual capital, corporate governance and corporate social responsibility in Vietnam

Abstract

Intellectual capital plays a crucial role in creating competitiveness and wealth for firms. Previous studies have mainly examined the effect of intellectual capital on corporate performance without examining factors that affect intellectual capital efficiencies such as corporate governance and corporate social responsibility. This study is conducted to examine the role of corporate governance and corporate social responsibility on intellectual capital efficiency for the Vietnamese listed firms in the telecommunications technology sector. This study uses the Modified Value-Added Intellectual Coefficient (MVAIC) model to estimate intellectual capital efficiency. The Generalized Method of Moments (GMM) is also used. Our empirical results indicate that the previous year’s intellectual capital efficiency affects significantly the current year’s intellectual capital efficiency. Besides, corporate governance provides a positive and significant effect on intellectual capital efficiency. We also find that corporate social responsibility is positively linked with intellectual capital efficiency. Policy implications have emerged based on the findings of this study.