The Impact of Human Capital, Structural Capital and Relational Capital on Corporate Performance in Pakistan

Authors

  • Faiza Saleem Assistant Professor, Department of Management Sciences University of Wah, Wah Cantt, Pakistan
  • Saddam Hussain MS Graduate, Department of Management Sciences University of Wah, Wah Cantt, Pakistan
  • Ghulam Yasin Lecturer, Department of Management Sciences University of Wah, Wah Cantt, Pakistan

Keywords:

Intellectual Capital, Relational Capital, Human Capital, Structural Capital, Corporate Performance, Fixed Effects Model

Abstract

Intellectual capital is a term frequently used to describe intangible assets (INTC). This study intends to examine the impact of three components of intellectual capital, that is, human capital, structural capital, and relational capital, on the corporate performance (CP) of non-financial listed on the Pakistan Stock Exchange (PSX). This study uses quantitative secondary data spanning from 2012 to 2019, collected from annually published reports of the companies. The quantitative data analysis has been done by using the Fixed Effects Model (FEM). This research shows that each of the INTC dimensions studied has a significant positive relationship with corporate performance in Pakistan. This study will assist non-financial firms in their policy formulation related to capital structuring, which will assist them to enhance their performance. The management of non-financial firms will also benefit from this study as they can take corrective actions on their existing policies and procedures and make them competent.

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Published

2022-11-30

Issue

Section

Articles