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Journal of Finance & Economics Research - Volume 7, Issue 1 2022
By Muhammad Ali, Chin-Hong Puah, Muhammad Shujaat Mubarak, Muhammad Ashfaq
10.20547/jfer2207101
Keywords: Intellectual capital, financial management, firm performance, knowledge, business.
The contemporary business environment has superseded the retail and industrial economy due to the information-age economy's existence. The combination of knowledge and information provide practical benefits to the technology-driven and knowledge-intensive businesses. In this context, the firms heavily rely on efficient management practices such as financial management and knowledge capabilities like intellectual capital. The poor financial management practices and weak intellectual capital may result in business failure. Previous studies mainly focused on the relationship between intellectual capital and firm performance. However, intellectual capital as a predictor of financial management practices is a missing concept in the existing literature. Therefore, this study focuses on building a framework between intellectual capital (human capital, structural capital and relational capital) and financial management practices (working capital management, accounting information systems, financial reporting, financing, and investment decisions). This study left space for future studies to test the proposed model according to their study settings.
Submission Date: 24 Sep, 2021 Reviews Completed: 14 Dec, 2021Acceptance Date: 19 Dec, 2021 Publication Date: 25 Dec, 2021