The nexus between corporate governance and intellectual capital in Vietnam
| DOI | https://doi.org/10.1108/JABS-01-2020-0007 |
| Date | 17 April 2020 |
| Published date | 17 April 2020 |
| Pages | 637-650 |
| Author | Ngoc Phu Tran,Loan Thi-Hong Van,Duc Hong Vo |
| Subject Matter | Strategy,International business |
The nexus between corporate governance
and intellectual capital in Vietnam
Ngoc Phu Tran, Loan Thi-Hong Van and Duc Hong Vo
Abstract
Purpose –This paper aims to examinethe relationship between corporate governanceand intellectual
capital in the context of Vietnam. In this paper, corporate governance is proxied by various
characteristics, including board size, a number of independent members in the board, board
remuneration, majorshareholder holding more than 20 per cent of the outstanding sharesand duality of
the CEO. In addition, intellectual capital is measured using the modified value-added intellectual
coefficientmodel (MVAIC).
Design/methodology/approach –The study usesdata of 45 Vietnamese listed firms during2011-2018.
The MVAIC model is used incorporating four components, namely, human capital, structural capital,
capitalused and relational capital. In addition,GMM regression technique is used in this paper.
Findings –Empirical findingsfrom this paper indicate that key characteristics of corporategovernance,
exceptfor board remuneration, may providea negative effect on the efficient use ofintellectual capital.
Research limitations/implications –Intellectualcapital emerges as a new field of research that has not
been widely examined in emerging countries such as Vietnam. As such, there have not been many
studies focusing on understanding intellectual capital and its role in the performance of enterprises.
Further studies can evaluate the relationship between intellectual capital and corporate performance,
capital structure, corporate value and social responsibility. This study is limited to listed companies in
Vietnam because of data limitations in an emerging market. Studies in the future should extend the
sample and/or compare differences between manufacturing enterprises and financial institutions, or
betweencountries.
Practical implications –Findings from this paper provide a valuable framework for executives,
managers and policymakers in managing corporate governance and intellectual capital within the
Vietnamesecontext.
Originality/value –To the best of the authors’ knowledge,this is the first empirical study that has been
conducted to examine the relationship between corporate governance and intellectual capital in the
contextof Vietnam.
Keywords Corporate governance, Vietnam, GMM, Intellectual capital, MVAIC
Paper type Research paper
1. Introduction
In recent years, many studies have been conducted to argue that intellectual capital (IC) is
an important strategic resource for organizations in knowledge-based economy (Zerenler
and Gozlu, 2008;Dzinkowski, 2000). Stewart (1997) defined IC as an intangible value
created for people and firms. Kaplan and Norton (1996) mentioned IC as investments in
employees, customers, suppliers and technology innovation. IC is generally considered an
intangible asset that representsa competitive advantage for different companies and it can
expand its market share through the necessary knowledge and resources (Lu et al.,2010).
IC can also be considered as a valuable source for measuring growth of companies. IC
helps businesses enhance value, gain competitive advantage, improve internal control,
increase asset management and reduce risk-related decisions (Al-Sartawi, 2017;Al-Musalli
and Ismail, 2012).
Ngoc Phu Tran is based at
Graduate School, Ho Chi
Minh City Open University,
Ho Chi Minh City, Vietnam.
Loan Thi-Hong Van is
based at the School of
Advanced Study, Ho Chi
Minh City Open University,
Ho Chi Minh City, Vietnam.
Duc Hong Vo is based at
Business and Economics
Research Group, Ho Chi
Minh City Open University,
Ho Chi Minh City, Vietnam.
Received 6 January 2020
Revised 25 February 2020
Accepted 3 March 2020
DOI 10.1108/JABS-01-2020-0007 VOL. 14 NO. 5 2020,pp. 637-650, ©Emerald Publishing Limited, ISSN1558-7894 jJOURNAL OF ASIA BUSINESS STUDIES jPAGE 637
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