The Relationship between Non-Financial Stakeholders and Capital Structure


  • Somayeh Soheilirad Universiti Teknologi Malaysia
  • Saudah Sofian Universiti Teknologi Malaysia
  • Abbas Mardani Universiti Teknologi Malaysia
  • Edmundas Kazimieras Zavadskas Vilnius Gediminas Technical University
  • Artūras Kaklauskas Vilnius Gediminas Technical University
  • Jafargholi Mohammadi Darvishvand Universiti Teknologi Malaysia



Corporate Performance, Intellectual Capital, Perceived Environmental Uncertainty, Capital Structure, Financial accounting


Financial accountong literatures have highlighted the important role of non-financial factors such as intellectual capital (IC) as a main value added factor for companies, and perceived environmental uncertainty (PEU) as unpredictable contingency factor from a dynamic environment on the corporate performance (CP). Therefore, it is important for organizations to rely more on non-financial than financial factors to achieve higher competitive advantage. Identifying the most important non-financial factors affecting corporate performance from these environments and their relationship with capital structures is the main issue in today's dynamic conditions. This research examined the relationship between non-financial factors of IC and PEU and evaluated their influence on CS directly or indirectly by considering corporate performance as mediator. Questionnaires were distributed to 339 public listed Iranian manufacturing companies selected by census. Data were analysed using structural equation modeling. The main findings of this study are IC can enhance corporate performance, PEU is positively linked to corporate performance, and corporate performance is positively linked to capital structure. The results also indicated a full mediating role of corporate performance in the relationship between PEU and capital structure. This study contributes to determining capital structure decision making, by considering IC and PEU in the context of companies in Iran. Also, we analyze intellectual capital relation with and 1) traditional vs. secular-rational values and 2) survival vs. self-expresion values. Based on the analysis of existing knowledge, neutral networks, expert and decision support systems and in order to determine most effective versions of intellectual capital an Intellectual capital multiple criteria decision support (ICMCDS) system consisting of a database, databa management system, model-base, model-base management system and user interface was developed. Further in-depth research is needed to examine this links betwwen non-financial factors with different measurement perspectives and capital structure to develop a deeper understanding of their effect on capital structure.


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