Intellectual capital as a moderating effect between corporate governance, and firm performance: A conceptual review

Abstract

This research hypothesized that intellectual capital had a moderating impact on the connection between corporate governance and company performance. Researchers and investors have been investigating, monitoring, and analyzing firm performance in light of the serious consequences of many corporate accounting scandals, such as Toshiba 2015, as well as the occurrence of numerous nations. After the economic crisis, the deterioration in corporate governance has shown that this lack of governance could have long-term macroeconomic consequences. As a result, good corporate governance practice is important to improve organizational efficiency, secure investor rights, strengthen investment climate, and promote economic development. The investment in expertise and intellectual capital has become one of the most significant assets required to increase its value, create a competitive advantage, and improve its performance. Along with corporate governance, intellectual capital is a key to business growth and can better explain disparities in the firm's financial performance. The findings of this study indicate that the role of intellectual capital as a moderator variable is designed to improve firm performance in combination with the structure of corporate governance, thereby promoting economic growth. Therefore, this study recommends that future research be conducted as a moderator of firm performance with the integration of corporate governance and intellectual capital. It may improve corporate governance practice, thus enhancing firm performance.