Intellectual Capital Efficiencies on Financial Performance of the Textile Firm

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Business Research Method

Topic:

                Research Article

Submitted to:

                Mam Khansa Irem

Intellectual Capital Efficiencies on Financial Performance of the Textile Firm

Table of Contents:

Abstract ………………………………………………………………………………………......3

Introduction …………..………………………………………………………………………….4

Literature Review……………………………….……………………………………………….6

Methodology and Method …….……………………………………………….........................13

Measures …..................................................................................................................................16

Analysis and Result ………………………………………………………………………….....16

Discussion ……………………………………………………………………………................19

Conclusion ……………………………………………………………………...........................21

Referencing …………………………………………………………………………………......22

1. Abstract:

The purpose of this article is to investigate the impact of the intellectual capital on Pakistani textile sector. Data required to calculate human capital, structural capital and capital employed efficiencies were obtained from annual reports .To investigate the impact of intellectual capital on textile sector use the secondary data in which collect the annual report of 10 companies of last 3 years. In this study positivism paradigm are uses and apply the Eviews test. The result is there is positive relationship exists between the all variables and which shows that all variables are strongly related to each other but there is no contribution of independent variable human capital efficiency, structural capital efficiency, intellectual capital efficiency to dependent variable return on assets and return on equity. By this study improve the textile firms of Pakistan and impact of intellectual capital on textile firms.

1. Introduction:

Pakistan Textile industry is the dominant manufacturing sector in Pakistan. The significance of Textile industry in Pakistan's economy can be gauged from the fact that it contributes more than 67% to the total export earnings of the country, contributes 27% of industrial value addition, constitutes 31% of total manufacturing investment and provides employment to 38% of the manufacturing labor force. The availability of basic raw material for Textile industry i.e. cotton has played a catalytic role in the growth of the industry. The Pakistan textile industry contributes more than 60% to the country’s total exports; the industry contributes around 46% to the total output produced in the country. In Asia, Pakistan is the 8th largest exporter of textile products. According to Economic survey of Pakistan the contribution of this industry to the total GDP is 8.5% it provides employment to 38% of the work force in the country, which amounts to a figure of 15 million. However, the proportion of skilled labor is very less as compared to that of unskilled labor.