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International Letters of Social and Humanistic Sciences
Volume 43

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Intellectual Capital and its Impact on Financial Performance: A Study of Oil and Gas Sector of Pakistan

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Abstract:

The study examines the Intellectual Capital (IC) performance of oil and gas sector of Pakistan over the period of 2007 to 2011 and its impact on corporate financial returns. The study uses value added intellectual coefficient (VAICitTM) to measure IC performance and its various components of VAICitTM like (HCEit, SCEit and CEEit) and its impact on financial performance (ROEit, ROIit and EPSit). Micro panel data of oil and gas sector registered in KSE-100 index is collected from their consolidated annual reports over the period of 2007 to 2011. The IC performance is measured by Ante Pulic Model (VAICitTM) and its effect on corporate returns (ROEit, ROIit and EPSit) is tested by Random Effect Model estimation. Hausman test suggests that study accepts null hypothesis (Chi2. Prop > 0.05) where for ui is uncorrelated with regressor means that random effect is preferred versus alternative fixed effect in all the proposed research models. The study reveals that VA is considered an important component for measuring the VAICitTM performance and it has positive and significant relationship with firm’s profitability (EPSit) and HCEit and SCEit have positive and significant relationship with firm’s financial performance (ROEit and ROIit) respectively. So, this study explores that Intellectual Capital Efficiency (ICE) has relatively larger contribution for measuring the VAICitTM performance where HCEit and SCEit execute substantive role to accelerate the financial performance of oil and gas sector of Pakistan as compare to tangible assets.

Info:

Periodical:
International Letters of Social and Humanistic Sciences (Volume 43)
Pages:
125-140
Citation:
M. Arslan and R. Zaman, "Intellectual Capital and its Impact on Financial Performance: A Study of Oil and Gas Sector of Pakistan", International Letters of Social and Humanistic Sciences, Vol. 43, pp. 125-140, 2015
Online since:
Nov 2014
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References:

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08 1 AttockRefinary Ltd (ARL).

09 1 AttockRefinary Ltd (ARL).

10 1 AttockRefinary Ltd (ARL).

11 1 AttockRefinary Ltd (ARL).

07 2 Pakistan Refinary Ltd (PRL).

08 2 Pakistan Refinary Ltd (PRL).

09 2 Pakistan Refinary Ltd (PRL).

10 2 Pakistan Refinary Ltd (PRL).

11 2 Pakistan Refinary Ltd (PRL).

07 3 National Refinary Ltd (NRL).

08 3 National Refinary Ltd (NRL).

09 3 National Refinary Ltd (NRL).

10 3 National Refinary Ltd (NRL).

11 3 National Refinary Ltd (NRL).

07 4 Mari Gas Company Limited.

08 4 Mari Gas Company Limited.

09 4 Mari Gas Company Limited.

10 4 Mari Gas Company Limited.

11 4 Mari Gas Company Limited.

07 5 Oil and Gas Development Co. ltd.

08 5 Oil and Gas Development Co. ltd.

09 5 Oil and Gas Development Co. ltd.

10 5 Oil and Gas Development Co. ltd.

11 5 Oil and Gas Development Co. ltd.

07 6 Pakistan State Oil (PSO) 209. 9867 203. 5291 5. 462475 0. 995087 408, 250, 702.

08 6 Pakistan State Oil (PSO) 242. 4765 236. 9372 4. 543586 0. 995779 577, 535, 268.

09 6 Pakistan State Oil (PSO) 253. 7426 248. 1023 4. 644287 0. 995969 712, 533, 301.

10 6 Pakistan State Oil (PSO) 277. 3676 272. 0663 4. 304912 0. 996324 870, 658, 805.

11 6 Pakistan State Oil (PSO) 230. 3645 225. 6862 3. 682803 0. 995569 967, 374, 435.

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08 7 Attock Petroleum Ltd (APL).

09 7 Attock Petroleum Ltd (APL).

10 7 Attock Petroleum Ltd (APL).

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08 8 Pakistan Petroleum Ltd 14. 84064 13. 4296 0. 485506 0. 925538 29, 627, 145.

09 8 Pakistan Petroleum Ltd 17. 05004 15. 62631 0. 487725 0. 936005 40, 440, 276.

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09 9 Shell Pakistan Ltd 111. 7091 105. 6608 5. 057793 0. 990536 170, 213, 604.

10 9 Shell Pakistan Ltd 132. 7555 126. 1373 5. 626163 0. 992072 216, 593, 263.

11 9 Shell Pakistan Ltd 170. 8278 164. 9395 4. 89436 0. 993937 240, 602, 236.

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. 75542 38. 53714 1. 244229 0. 974051 25, 446, 345.

. 61862 39. 42275 1. 221238 0. 974634 26, 760, 281.

3-450.

6. 3294 491. 9975 3. 333979 0. 997967 108, 226, 158.

0. 3477 485. 4985 3. 851228 0. 99794 70, 363, 296.

. 27547 48. 65228 1. 643746 0. 979446 20, 696, 243.

3. 0159 520. 2994 1. 718416 0. 998078 76, 448, 109.

4. 3874 530. 7766 2. 612742 0. 998116 134, 919, 688.

0. 4566 525. 0469 4. 411636 0. 998095 94, 597, 175.

1. 9131 539. 083 1. 832027 0. 998145 58, 969, 207.

4. 0922 551. 5921 1. 501906 0. 998187 87, 994, 939.

1. 9415 547. 0843 3. 859059 0. 998172 59, 866, 884.

3. 2708 558. 9917 3. 280861 0. 998211 138, 926, 778.

7. 6575 561. 1221 5. 537164 0. 998218 49, 744, 594.

4. 4937 570. 3935 3. 101936 0. 998247 144, 564, 521.

8. 578 574. 4748 3. 10493 0. 998259 176, 031, 728.

8. 8143 602. 643 5. 172956 0. 998341 126, 635, 785.

. 78909 58. 47105 2. 335141 0. 982898 21, 438, 470.

8. 0497 705. 2304 1. 820683 0. 998582 115, 967, 385.

5. 3682 701. 8914 2. 478159 0. 998575 76, 475, 284.

4. 3787 751. 5514 1. 828577 0. 998669 91, 577, 293.

5. 3862 1240. 056 3. 983115 0. 999194 57, 254, 941.

4. 4822 839. 6311 3. 852208 0. 998809 96, 223, 409.

9. 1699 955. 8137 2. 357335 0. 998954 76, 770, 953.

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