The relationship between intellectual capital and systematic risk in Tehran Stock Exchange

Dissertation for Master Degree) (M.A

Field of Study: Public Administration (Financial Orientation)

Abstract:

Nowadays, knowledge as the most important capital has replaced material capital, especially in a competitive and technological environment. Therefore, the concept of applied intellectual capital has become important and widespread. Intellectual capital is manifested in customers, processes, information, trademarks, human resources and organization systems. and plays an increasing role in creating sustainable competitive advantages. Therefore, the main purpose of this research was to investigate the relationship between intellectual capital and systematic risk in the Tehran Stock Exchange, which was used to measure the variables independent of Palik's model, and the data obtained from the new software was used to calculate the research variables They were analyzed with the help of descriptive and inferential statistics such as correlation analysis, so 70 active stock companies were considered as a selected sample. The results of the test of research hypotheses have been done using the multiple regression method for the main hypotheses. The first main hypothesis, which examines the relationship between intellectual capital and systematic risk in the Tehran Stock Exchange during the years (1385-1389), reports the existence of a significant relationship between intellectual capital and systematic risk in the stock exchange. And in the second main hypothesis, considering the size of the company in the first main hypothesis, we came to the conclusion that there is no significant relationship between intellectual capital and systematic risk with the size of the company.

Key words: intellectual capital, human capital, labor capital, physical capital, systematic risk.

Introduction:

One of the most important problems of traditional accounting systems is their inability to measure and clearly consider the intellectual capital of companies. Most of these systems are oblivious to the role and increasing importance of intellectual property rights and knowledge in modern organizations and are unable to measure the real value of intangible assets in their calculations. For this reason, the desire to measure and include the real value of intangible assets and knowledge in the financial statements of companies has increased. In today's knowledge-oriented societies, the return on intellectual capital used has become important. This means that compared to intellectual capital, the role and importance of financial capital in determining sustainable profitability has been significantly reduced. In other words, it can be imagined that there is a direct relationship between the amount of intangible assets and knowledge companies have on the one hand, and the real value of their intellectual capital (and ultimately the market value of companies' shares). Due to the increase in the relative importance of intellectual capital (as the most important part of the company's total capital) in sustainable, continuous and long-term profitability, most companies are looking for appropriate answers to the following basic questions.

What are the methods of measuring the intellectual capital of companies?

Statistically, is there a significant relationship between the amount of intellectual capital and the risk of companies and different industries active in the Tehran Stock Exchange?

In this research to measure The intellectual capital of the companies was used from the Palik model and based on the 5-year data of the companies active in the Tehran Stock Exchange between 1385 and 1389, the intellectual capital of the companies was calculated. Also, to answer the first question, the main hypotheses of the research claim that there is a significant relationship between the intellectual capital and systematic risk in the mentioned years.

Chapter One

General Research

Introduction

Until the early 1950s, the main reason for the backwardness of developing countries was thought to be the lack of financial and physical resources. In the framework of such a way of thinking, these countries used to acquire capital in different ways and by appealing to friends and enemies. This would intensify the dependence and destruction of the economic and political foundations of such countries. But today, it has become clear that the injection of various amounts of physical and financial capital does not necessarily accelerate the growth and development of these countries, but countries that have strong organizations and efficient administrative institutions and at the same time efficient and expert human capital can absorb their physical and financial capital in a more appropriate way.But today, it has become clear that the injection of large amounts of physical and financial capital does not necessarily accelerate the growth and development of these countries, but countries that have strong organizations and efficient administrative institutions, and at the same time efficient and expert human capital, can absorb their physical and financial capital in a more appropriate way and use it to accelerate the growth and development process. instruments and It has become more important. One of the most important characteristics of knowledge is its intangibility, which means that it is intangible and intangible, and it is very difficult to determine its real value and measure it, although in the past, organizations have been able to measure and calculate the value and size of their production factors using accounting methods. Considering the course of changes in knowledge in the world, it can be concluded that in the past, most of the organization's assets were tangible, and today, a large part of the organization's assets are intangible. Knowledge or intellectual capital has become more preferred as a factor of wealth production compared to other physical assets. Intellectual capital is mostly based on knowledge and information and can include anything from customer loyalty to technology skills, which has an important impact on organizational innovation processes. Intellectual capital will have a significant impact on the performance of organizations due to the importance of its constituent elements: human capital, structural capital, customer capital, and physical capital. Many studies and researches have been done in the field of the effect of intellectual capital on the financial performance of companies, which can refer to the research (Bassi and Bourne, 1999, 414-432) [1]. It was done in America. On the other hand, today's world has left behind the industrial economy and entered the knowledge-based economy.  A knowledge-based economy is an economy in which the production and productivity of knowledge plays the main role in the process of creating wealth (Chen et al., 2005, 385-396)[2]. One of the distinctive features of the knowledge-based economy is the huge flow of investment in human capital and information and communication technology. The new knowledge economy offers potentially unlimited resources; Because the human capacity to create knowledge is unlimited. Intangible assets and intellectual capital quickly complement physical assets. Intellectual capital includes the sum of the knowledge of the members of an organization and the practical application of the organization's knowledge (Ross and Ross 1997, 426-413).[3] In other words, intellectual capital consists of intellectual materials such as knowledge and information and intellectual property (property) and experience that create wealth (Stewart, 1997) [4]. This research seeks to examine the interrelationships between the components of intellectual capital and its effects on organizational performance in the Tehran Stock Exchange. And since intellectual capital is the interest of many groups such as shareholders, managers, researchers and politicians, therefore the importance of this research is to highlight the role of intellectual capital in evaluating the performance of managers of companies admitted to the stock market so that they cannot make the most of their intellectual capital.  Also, the findings of this research help to better manage intellectual capital.

1-1- Statement of the research problem

Nowadays, in order to provide the maximum necessary conditions to achieve goals and strategies, organizations should not only identify, measure and manage their intangible assets, but should always try to continuously improve and improve such assets. The reality is that organizations that fail to continuously upgrade their knowledge assets will trade their survival for the risk of their loss and destruction. Intellectual capital is a vast organizational knowledge that is specific and unique to each organization, allowing it to continuously adapt to changing conditions. Due to the importance of its constituent elements, intellectual capital, human capital, structural capital and customer capital will have a significant effect on the performance of organizations. On the other hand, risk means any phenomenon that can deviate the result from what the investor expects. Risk is divided into two types of attitudes: 1- Fundamental attitude: 1-1 financial risks (capital market), commercial risks (product market). 2-1 Financial risks, non-financial risks 2- New portfolio theory approach: systematic risks, unsystematic risks (Rai and Saeedi, 2015, 2016).

According to the view based on company resources, intellectual capital is an important resource that enables companies to create competitive advantage and superior financial performance.