The impact of intellectual capital on the financial performance of agricultural enterprises: evidence from the West Balkans Counties

The purpose of this paper is to identify and analyze the impact of the key elements of intellectual capital (according to the VAIC model) on the financial performance of agricultural enterprises operating in emerging markets. In addition to the key elements of IC, the paper examines the impact of size, age and leverage on financial performance. The research was conducted on WBC, using balanced panel data techniques, which enables the control of the bias generated by potential heterogeneity, on a sample of 47 agricultural enterprises. Different estimators were used for the estimation parameters of the dynamic panel data model. The research results indicate that CEE is the most important element of IC and that HCE has a minor impact, while SCE has a negative impact on the financial results of agricultural enterprises in WBC. Also, research points out the importance of the correct choice of estimators of model parameters and the important to take into account the problem of endogeneity.