jbef Journal of Business Economics and Finance 2146-7943 Dilek TEKER Finance Finans DO BOARD GOVERNANCE MECHANISMS INFLUENCE THE INTELLECTUAL CAPITAL–PERFORMANCE RELATIONSHIP? EVIDENCE FROM AN EMERGING ECONOMY https://orcid.org/0000-0002-6055-0368 Khatun Asia University of Dhaka https://orcid.org/0000-0003-2015-8035 Sobhan Raihan University of Dhaka https://orcid.org/0009-0000-3106-1234 Aapan Shafera Siddique University of Dhaka 12 31 2025 14 2 177 189 09 05 2025 12 02 2025 Copyright © 2012, Journal of Business Economics and Finance 2012 Journal of Business Economics and Finance

Purpose- This study examines the influence of intellectual capital (IC) on firm performance and the moderating role of board governancemechanisms in the context of Bangladesh, an emerging economy.Methodology- Using panel data from 100 non-financial firms listed on the Dhaka Stock Exchange over 2018–2023, IC efficiency is measuredthrough the Modified Value-Added Intellectual Capital (MVAIC) model, while firm performance is assessed using return on assets and Tobin’sQ.Findings- The findings demonstrate that IC efficiency positively and significantly enhances firm performance, with human capital, structuralcapital, and capital employed efficiency being key drivers. Moreover, board characteristics, particularly board size, independence, andmeeting frequency, significantly strengthen the IC–performance relationship. Earnings per share (EPS) and the price–earnings (P/E) ratio areadditionally employed as alternative measures of firm performance to verify the robustness of the observed relationship.Conclusion- The results highlight the importance of effective board governance in maximizing the benefits of IC. For managers andpolicymakers in emerging economies, strengthening board mechanisms and governance practices can enhance firm performance by ensuringbetter utilization of intangible assets. This is one of the pioneer studies to investigate the moderating role of board governance mechanismsin the IC–performance nexus within an emerging economy like Bangladesh. By employing the MVAIC model, it offers novel evidence on howboard attributes shape the effectiveness of IC in an emerging economy context.

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