Do Intellectual Capital Elements Spur Firm Performance? Evidence from the Textile and Apparel Industry in China

Table 1

Representative studies on IC and firm performance.

Author	IC measurement	Dependent variable	Sample	Data source	Main findings
Kweh et al. [41]	Ratios	Operating performance	Life insurance firms in Taiwan and China	Financial reports	HC is positively linked to operating performance, while SC is negatively related.
Bhatia and Aggarwal [42]	VAIC	Return on assets (ROA) and return on net worth	Software companies in India	PROWESS	All IC components are positively related with financial performance.
Nimtrakoon [27]	MVAIC	Market-to-book ratio (MB), margin ratio, and ROA	Technology firms in the ASEAN	Five stock exchanges	Physical capital and HC are the most influential factors, while SC and RC have less impact.
Dženopoljac et al. [43]	VAIC	ROA, return on equity (ROE), return on invested capital, profitability, and asset turnover ratio (ATO)	Information communication technology companies in Serbia	Serbian Agency for Business Registers	Only physical capital has a significant impact on financial performance.
Meles et al. [44]	VAIC	ROA and ROE	Commercial banks in US	Bankscope Bureau Van Dijk	HC has a positive impact on financial performance.
Ozkan et al. [45]	VAIC	ROA	Banks in Turkey	Financial reports	Physical capital and HC positively affect financial performance.
Smriti and Das [46]	VAIC	ROA, MB, and ATO	Pharmaceutical and drug companies in India	CMIE	Physical capital and SC determine business performance.
Xu et al. [47]	VAIC	ROA and ROE	Environmental protection companies in China	Financial reports	HC and SC exert a positive impact, while INC does not have an impact.
Chowdhury et al. [48]	VAIC	ATO, ROA, and ROE	Textile firms in Bangladesh	Financial reports	Tangible capital and SC have a positive impact, whereas the impact of HC is not significant.
Tiwari and Vidyarthi [29]	MVAIC	ROA and ROE	Banks in India	PROWESS	HC and SC show a positive linkage with banks’ performance.
Xu and Wang [49]	VAIC	Earnings before interest and taxes (EBIT), ROA, ROE, and ATO	Agricultural companies in China	CSMAR	Physical and human capitals impact firm performance.
Xu et al. [32]	MVAIC	ROA and ROE	Manufacturing companies in China	RESSET	HC and SC positively affect firm performance, while RC exerts a negative impact.
Yao et al. [50]	VAIC and MVAIC	ROA, net operating margin, and ATO	Financial institutions in Pakistan	Financial reports	HC can increase firm performance significantly.
Bansal and Singh [51]	VAIC	ROA and ATO	Software companies in India	PROWESS	Intangible capital has the greatest impact.
Costa et al. [34]	MVAIC	ROA	Hospitality and tourism industry in Portuguese	SABI	CEE and HCE have a positive impact, while SCE presents a negative impact.
Kasoga [52]	VAIC	ROA, ATO, sales growth (SG), and Tobin’s Q	Service and manufacturing firms in Tanzania	Financial reports	A positive impact of SC and a negative impact of physical and human capitals are observed.
Gupta and Raman [53]	MVAIC	ROA	Information technology (IT) and pharmaceutical firms in India	Financial reports and S&P Global Capital IQ	Physical capital, HC, RC, and process capital have an impact on ROA.
Neves and Proença [54]	VAIC	ROA, ROE, and net interest margin	Banks in Portugal	Financial reports	All IC components influence banks’ performance.
Xu and Liu [8]	IC index	Earnings before interest, taxes, depreciation and amortization (EBITDA), net profit margin, gross profit margin, return on investment, ROA, and ROE	Manufacturing companies in China	CSMAR and RESSET	IC is positively related to all performance indicators except EBITDA.