Intellectual capital and the ownership concentration ratio as a determinant of the valuation of manufacturing enterprises quoted on the Warsaw Stock Exchange
DOI:
https://doi.org/10.33119/SIP.2023.192.6Keywords:
ESG, intellectual capital, manufacturing companies, non-financial reporting, ownership structure, ownership concentration ratio, market valuationAbstract
The article presents an analysis of the relationship between the value of intellectual capital, the ownership concentration ratio, and the stock valuation of manufacturing companies listed on the Warsaw Stock Exchange. The results of the analysis showed a positive correlation between the value of intellectual capital and the stock valuation of companies. Increasing the potential of intellectual capital has a positive impact on stock valuation, while the presence of a significant shareholder in the ownership structure may have a negative impact on this valuation. The analysis also revealed that the ownership concentration ratio, depending on its type, can have a positive or negative impact on the value of intellectual capital. The conclusions drawn from the analysis indicate that the value of intellectual capital significantly affects the stock valuation of manufacturing companies listed on the Warsaw Stock Exchange. At the same time, ownership concentration is an important determinant of valuation. The analysis suggests that manufacturing companies should invest in the development of their intellectual capital to increase their value in the stock market. They should also pay attention to the ownership structure to avoid negative effects of ownership concentration. Moreover, the analysis seeks to establish cause-and-effect relationships between the independent variable – the type of shareholder, and the dependent variable – the value of the intellectual capital of manufacturing companies. A key aspect of the analysis is determining the co-occurrence of increases or decreases in stock valuation with the concentration ratio of a particular type of shareholder. Understanding these relationships and disclosing them by financial supervisory bodies can contribute to promoting financial education and economic rationality within the new ESG reporting paradigm. The construction of a verifying report assessing the investment in intellectual capital by a leading type of shareholder can enhance the prediction of a manufacturing company’s future valuation and contribute to the development of a mechanism for detecting and preventing financial misconduct and protecting investors. Thus, I make the following recommendations:
• create the BPKI30 (Barometer of Intellectual Capital Potential) index of 30 manufacturing companies with the highest intellectual capital potential, correlated with the ownership concentration index, consisting of a representative number of companies from the WIG20, WIG40 and WIG80;
• develop and periodically disclose within the framework of a quarterly report the correlation between the potential of intellectual capital – its key components and the ownership concentration index – and the type of shareholder and market valuation of a given manufacturing company;
• creation and dissemination of rational investment behaviour on the basis of the knowledge made available in the report, allowing for the estimation of the return on investment in a given interval of time, with a real valuation of risk, on the basis of disclosed KPIs (Key Performance Indicators) of intellectual capital;
• construction of a model of causal relationships between intellectual capital variables, ownership concentration index and market valuation, and identification of determinants of stakeholder investment behaviour with publication of benchmarking of manufacturing companies effectively managing intellectual capital in a given industry.
Downloads
References
1. Briscoe, D. (2008). The Role of Interest Groups in the Policy Process. W: State and Local Politics: Institutions and Reform, J. A. Chandler, G. A. Shinn (Eds.). Belmont: Wadsworth Cengage Learning.
2. Grzywacz, T. (2008). Concentration of Ownership and Company Performance: Research Methodology and Empirical Evidence from Warsaw Stock Exchange. In: Advances in Fuzzy
Systems and Data Mining. Cham: Springer. 3. Lo, A. W. (2017). Adaptive Markets: Financial Evolution at the Speed of Thought. Princeton: Princeton University Press.
4. Nonaka, I., Takeuchi, H. (1995). The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation. New York–Oxford: Oxford University Press.
Artykuły prasowe i okolicznościowe
1. Bontis, J. A., Dragonetti, N., Jacobsen, K., Roos, J. (1999). The Knowledge Toolbox: A Review of the Tools Available to Measure and Manage Intangible Resources, European Management Journal, 17 (4).
2. Bontis, N., Keow, W. C. C., Richardson, S. (2000). Intellectual Capital and Business Performance in Malaysian Industries, Journal of Intellectual Capital, 1 (1).
3. Chen, J., Delmas, M. A. (2011). Measuring the Environmental Performance of Firms: A Case for Including Ctrategic Alliances in the Assessment, Journal of Economics Management Strategy, 20 (3).
4. Corrado, C., Haskel, J., Jona-Lasinio, C., Iommi, M. (2018). Intangible Investment in the EU and US before and since the Great Recession and Its Contribution to Productivity Growth, Journal of Infrastructure, Policy and Development, 2 (1).
5. Cyfert, M., Sługocka, A. (2017). Innowacyjność a wartość przedsiębiorstwa, Zeszyty Naukowe Uniwersytetu Szczecińskiego, 931.
6. Danielewicz, J., Jemielniak, D. (2016). Kapitał intelektualny a wycena giełdowa przedsiębiorstw notowanych na GPW, Gospodarka Narodowa, 1.
7. Derkowski, A., Kompa, K., Wilczyński, P. (2019). The Impact of Ownership Structure on the Market Value of Companies: Evidence from the Warsaw Stock Exchange, Journal of Business Research, 104.
8. Derkowski, A., Noga, T., Wachowska, J. (2019). Determinants of Concentration of Ownership in Listed Companies in Poland, Economic and Environmental Studies, 19 (2).
9. Duyma, M. (2017). Kultura organizacyjna a wyniki finansowe przedsiębiorstwa, Zeszyty Naukowe Uniwersytetu Szczecińskiego, 934.
10. Fassin, Y., Van Rossem, A., Buelens, M. (2011). Small Business Owners and the Pressure of Interest Groups: An Empirical Analysis, Journal of Small Business Management, 49 (2).
11. Hansen, M. T., Nohria, N., Tierney, T. (1999). What’s Your Strategy for Managing Knowledge?, Harvard Business Review, 77 (2).
12. Jajuga, K., Jajuga, T., Rostek, K. (2015). The Influence of Intellectual Capital on the Market Value of Companies with Different Ownership Structures: Empirical Evidence from Poland, Baltic Journal of Management, 10 (3).
13. Karski, M. (2020). Znaczenie kapitału intelektualnego w procesie wyceny przedsiębiorstw, Journal of Modern Science, 45 (1).
14. King, A. A., Lenox, M. J. (2000). Industry Self-Regulation without Sanctions: The Chemical Industry’s Responsible Care Program, Academy of Management Journal, 43 (4).
15. Kostera, M. (2012). Grupy interesu a wartość kapitału intelektualnego przedsiębiorstw produkcyjnych, Problemy Zarządzania, 10 (1).
16. Kowalski, J. (2018). Zarządzanie jakością a wartość przedsiębiorstwa, Zeszyty Naukowe Uniwersytetu Szczecińskiego, 972.
17. Michalski, G. (2021). Ocena wartości przedsiębiorstwa z wykorzystaniem metod ilościowych i jakościowych, Studia i Prace Wydziału Nauk Ekonomicznych i Zarządzania Uniwersytetu Szczecińskiego, 69.
18. Nowikowa, J. (2016). Kapitał intelektualny jako element wyceny przedsiębiorstw, Zeszyty Naukowe Uniwersytetu Szczecińskiego, 876.
19. Prędkiewicz, P. (2015). The Impact of Ownership Structure on the Value of Intellectual Capital, Procedia Economics and Finance, 27.
20. Smith, A. B., McKeen, J. D. (2003). The Impact of Interest Groups on Corporate Strategy and Performance, Journal of Management, 29 (6).
21. Szopiński, M. (2015). Wpływ wskaźnika koncentracji właścicielskiej na wartość przedsiębiorstwa, Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu, 394.
22. Szopiński, M., Wójcik, R., Kąkol, M. (2015). Wpływ wskaźników akcjonariatu na wycenę spółek notowanych na GPW, Studia i Materiały. Miscellanea Oeconomicae, 19 (2).
23. Witkowska, J. (2019). Analiza wartości przedsiębiorstw z wykorzystaniem kapitału intelektualnego, Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu, 637.
24. Żołądek, J., Kubiak, K., Dobija, M. (2017). The Importance of Intellectual Capital and Ownership Concentration for Market Value: Empirical Evidence from Warsaw Stock Exchange, Journal of Management and Business Administration. Central Europe, 25 (2).
25. Żołądek, P., Duraj, J., Skowronek-Mielczarek, A. (2020). Concentration of Ownership and Market Value of Companies Listed on the Warsaw Stock Exchange, Journal of Entrepreneurship, Management and Innovation, 16 (3).
26. Żurawicki, K. (2017). Kapitał intelektualny a wycena przedsiębiorstw na rynku kapitałowym, Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu, 488.
27. Żurawicki, T. (2017). Concentration of Ownership and Intellectual Capital in Companies Listed on the Warsaw Stock Exchange, Journal of Entrepreneurship, Management and Innovation, 13 (2).
