Volume 8, Number 1, 2023,  37 – 51

The Influence of Intellectual Capital on Earnings Quality: Evidence from Firms Listed on the Cambodia Securities Exchange


Zubir Azhar, Ph.D.
Universiti Sains Malaysia
Email: [email protected]
CamEd Business School
Email: [email protected]


Received: April 2023
Revised: May 2023
Accepted: June 2023


This study aims to determine whether the efficiency of intellectual capital (IC) and each of its three constituents—human capital efficiency (HCE), capital employed efficiency (CEE), and structural capital efficiency (SCE)—can generate better earnings quality (EQ) in an emerging market. Drawing on the Pulic (2004) model for measuring the efficiency of IC and the absolute value of discretionary accruals as a proxy for EQ, the study analyzes the data of a sample of Cambodian nonfinancial firms listed on the Cambodian Securities Exchange (CSX) during the period from 2013 to 2021. The empirical results indicated that Cambodian firms active in utilizing IC has more tendency to provide reports of high quality. Besides, it is shown that each of the three elements of IC significantly and positively influences EQ. Meanwhile, SCE has the most significant impact among the three components. Those results offer an enhanced understanding of IC-utilizing and EQ practices that might be in favor of investors, regulatory bodies, and scholars. This study is among the first studies investigating Cambodian firms for IC and EQ topics.

Keywords: Earnings quality; Value-added intellectual coefficient; Human capital efficiency; Employed capital efficiency; Structural capital efficiency

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Cite this article in APA 7

Azhar, Z. (2023). The influence of intellectual capital on earnings quality: Evidence from firms listed on the Cambodian Securities Exchange. JAFESS, 8(1), 37 – 51.

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