Do intellectual capital efficiency and institutional quality influence a firm’s capital structure? Evidence from India

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Habib, AM, Dalwai, T ORCID: https://orcid.org/0000-0001-5754-5384, Chugh, G and Mohammadi, SS, 2025. Do intellectual capital efficiency and institutional quality influence a firm’s capital structure? Evidence from India. Journal of Economics, Finance and Administrative Science. ISSN 2218-0648

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Official URL: https://doi.org/10.1108/jefas-02-2023-0039

Abstract

Purpose: This research explores the influence of intellectual capital (IC) efficiency (ICE) and institutional quality (IQ) on a firm’s capital structure (CS) in Indian firms.

Design/methodology/approach: The analysis was conducted on a sample of Indian companies from 2015 to 2019. Data were collected from the S&P database, and regression and additional analyses were performed to achieve the objectives of this research.

Findings: The findings show a significant positive effect of ICE on a firm’s CS from debt (CSD) and an insignificant positive effect of IQ on CSD and CS from equity (CSE). The findings also indicate that human-capital efficiency (HCE) and capital-employed efficiency (CEE) are the main IC sub-dimensions influencing a firm’s CS, compared to the structural-capital efficiency (SCE) dimension.

Practical implications: The results of this study have several practical implications, as they examine the influence of ICE and IQ on CS as potential determinants, which could help business leaders adopt optimal CS strategies.

Originality/value: The results of this study offer several novel contributions to the existing literature on CS by examining unexplored factors, such as ICE as a knowledge management strategy, ICE sub-dimensions, and IQ in the context of CS.

Item Type:	Journal article
Publication Title:	Journal of Economics, Finance and Administrative Science
Creators:	Habib, A.M., Dalwai, T., Chugh, G. and Mohammadi, S.S.
Publisher:	Emerald
Date:	20 March 2025
ISSN:	2218-0648
Identifiers:	Number Type 10.1108/jefas-02-2023-0039 DOI 2413447 Other
Rights:	Copyright © 2025, Ahmed Mohamed Habib, Tamanna Dalwai, Gaitri Chugh and Syeeda Shafiya Mohammadi. Published in Journal of Economics, Finance and Administrative Science. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence maybe seen at http://creativecommons.org/licences/by/4.0/legalcode
Divisions:	Schools > Nottingham Business School
Record created by:	Laura Borcherds
Date Added:	21 Mar 2025 16:43
Last Modified:	21 Mar 2025 16:43
URI:	https://irep.ntu.ac.uk/id/eprint/53280