Reexamining nonlinear effects of intellectual capital on firm efficiency

dc.contributor.author Liu, Wei-han
dc.contributor.author Kweh, Qian Long
dc.date.accessioned 2021-10-13T14:44:30Z
dc.date.available 2021-10-13T14:44:30Z
dc.date.copyright © 2021
dc.date.issued 2021
dc.description This article is not available at CUD collection. The version of scholarly record of this article is published in Annals of Operations Research (2021), available online at: https://doi.org/10.1007/s10479-021-04252-4 en_US
dc.description.abstract This paper first gauges the level of firm efficiency using the Stochastic Nonparametric Envelopment of Data (StoNED) approach. Our firm efficiency score closely reflects a firm’s actual operating conditions when using the statistical foundations of both Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis. Secondly, we estimate the nonlinear effects of intellectual capital on StoNED-based firm efficiency using the Generalized Additive Model (GAM). This model lets us depict the possible nonlinear relationship between explanatory variables and the explained variables in an additive manner. Our analysis of 1898 firm-year observations for U.S.-listed firms from 1999 to 2019 indicates that (i) our sample firms generally have about 65% of room left for improvement that could transform resources into wealth, and (ii) of the three major components of intellectual capital, human capital exhibits a concave-up curve, while structural capital and relational capital both demonstrate an upward trend, with each having an inflection in the middle of that curve. The GAM results remain qualitatively similar even after we re-estimate firm efficiency using the network slacks-based measure DEA model, and (iii) we discuss these comparisons and the respective implications of the three components. © 2021, The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature. en_US
dc.description.sponsorship Shenzhen Humanities & Social Sciences Key Research Bases en_US
dc.identifier.citation Liu, W. H., & Kweh, Q. L. (2021). Reexamining nonlinear effects of intellectual capital on firm efficiency. Annals of Operations Research. https://doi.org/10.1007/s10479-021-04252-4 en_US
dc.identifier.issn 02545330
dc.identifier.uri https://doi.org/10.1007/s10479-021-04252-4
dc.identifier.uri http://hdl.handle.net/20.500.12519/447
dc.language.iso en en_US
dc.publisher Springer en_US
dc.relation Authors Affiliations : Liu, W.-H., Department of Finance, Southern University of Science and Technology, No 1088, Xueyuan Rd., Xili, Nanshan District, Shenzhen, Guangdong, China; Kweh, Q.L., Faculty of Management, Canadian University Dubai, 1st Interchange,Sheikh Zayed Road, PO Box 117781, Dubai, United Arab Emirates
dc.relation.ispartofseries Annals of Operations Research;
dc.rights Permission to reuse the abstract has been secured from Springer Nature and Copyright Clearance Center.
dc.rights.holder Copyright : © 2021, The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature.
dc.subject Data envelopment analysis en_US
dc.subject Firm efficiency en_US
dc.subject Generalized additive model en_US
dc.subject Intellectual capital en_US
dc.subject Stochastic frontier analysis en_US
dc.title Reexamining nonlinear effects of intellectual capital on firm efficiency en_US
dc.type Article en_US
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