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1. Effect of Investments on Training and Advertising on the Market Value Relevance of Intangibles.

Author

Garcia-Zambrano, Lidia, Rodriguez-Castellanos, Arturo, and Domingo Garcia-Merino, Jose

Subjects
MANAGEMENT of intellectual capital, INTANGIBLE property, ADVERTISING, MARKET value, DEPRECIATION, TOBIN'S Q ratio, BUSINESS enterprises
Abstract

This paper seeks to analyse the influence that the spending on intangible resources, specifically training and advertising, has on the corporate market value. Expenditure on intangibles is an investment in business management terms. A sample of the main Spanish companies, those quoted on the IBEX-35, was selected and the relationship was analysed between investment in intangible resources (training being representative of Human Capital and advertising of Relational Capital) and the market value relevance of the company's intangibles (measured using Tobin's Q) in two periods: 2006-2009 and 2008-2011. We thus obtain that both investing in training and investing in advertising separately have a positive impact on Tobin's Q. Regarding the joint effect, there is a positive and significant relationship with Tobin's Q in the first period analysed and no significant relation in the second period analysed. That is, investment in intellectual capital dimensions generates increases in the future market value of the firm. The results are similar using different rates of depreciation. [ABSTRACT FROM AUTHOR]

Published
2013

2. Human Capital and Creation of Reputation and Financial Performance.

Author

Olmedo-Cifuentes, Isabel and Martínez-León, Inocencia

Subjects
*HUMAN capital, *FINANCIAL performance, *CORPORATE image, *DATABASES, *BUSINESS enterprises
Abstract

The aim of this paper is to show how managing human capital companies are able to enhance their corporate reputation and financial performance. In particular, this preliminary study analyses the impact of human capital on reputation perceived by employees and financial performance (by means of the return on capital employed -ROCE-). Using a database of Spanish audit sector and applying an exploratory and confirmatory factor analyses, three factors of human capital are obtained (Staff Quality, Staff Management and Staff Results) which have been related to the dimensions of employees' views of reputation and ROCE through a path analysis. The results reveal that staff quality (firms with creative employees, who perform their best and think actions through, and where there is no trouble if individuals left) has a significant and positive influence on all the dimensions of reputation. Staff management (firms with clear recruitment and succession training programs, upgrade employees' skills and employees who give their all) has a significant and positive impact on resource management, ethics and media reputation. Staff results (employees are satisfied and they do not have to bring down to others' level) have a positive and significant effect on business leadership, resource management, ethics and media reputation. No significant effects are found in when human capital factors and financial performance are linked as a consequence of the financial crisis. We also obtained unexpected results in the impact of reputation perceived by employees on financial performance. In any case, a practical implication for these results is that service companies which manage adequately their human capital can increase the employee views of corporate reputation, having the factor Staff Quality a double significant and positive influence on reputation than other two factors. [ABSTRACT FROM AUTHOR]

Published
2015

3. Linking Unlearning with Innovation through Organizational Memory and Technology.

Author

Cegarra-Navarro, Juan-Gabriel, Cepeda-Carrion, Gabriel, and Jimenez-Jimenez, Daniel

Subjects
*INFORMATION technology, *TACIT knowledge, *ORGANIZATIONAL learning, *ORGANIZATIONAL change, *BUSINESS enterprises
Abstract

While the information technologies provide organizational members with explicit concepts, such as writing instruction manuals, the 'organizational memory' provides individuals with tacit knowledge, such as systematic sets, routines and shared visions. This means that individuals within an organization learn by using both the organizational memory and the information technologies. They interact to reduce organizational information needs contributing to improve organizational innovativeness. However, the utilization of the organization memory or the technology infrastructure does not guarantee that appropriate information is used in appropriate circumstances or that information is appropriately updated. In other words, previous memories reflect a world that is only partially understood and assimilated, which might lead individuals to doing the wrong things right or the right things wrong. This paper examines the relative importance and significance of the existence of unlearning to the presence and nature of 'organizational memory and technology'. We further examine the effect of the existence of organizational memory and information technology on conditions that promote organizational innovativeness. These relationships are examined through an empirical investigation of 291 large Spanish companies. Our analysis found that if the organization considers the establishment of an unlearning culture as a prior step in the utilization of organization memory or the technology infrastructure through organizational innovativeness, then organization memory and technology have a positive influence on the conditions that stimulate organizational innovativeness. [ABSTRACT FROM AUTHOR]

Published
2009