Corporate Governance and Intellectual Capital: Evidence from Public and Private Universities

Abstract

This study was conducted to examine the perception of academics towards intellectual capital (IC) and governance practice at two Malaysian universities: University A (a Public University) and University B (a Private University). It also examines the factors which contribute to the retention of qualified academics and the relationship between intellectual capital (IC) and corporate governance (CG) in universities.

Analysis revealed that while CG was an important factor influencing the attraction and retention of academics and IC, the major factor that attracts academics to join universities was the opportunity provided for academic advancement.

While the analysis demonstrated that both universities had implemented good governance processes, there remained weaknesses: University A (public) needed to put more effort into improving the transparency and accuracy of its information system, and in providing opportunities for academics to give feedback and suggestions; University B (private) was perceived to lack appropriate support for career development, and the conduct of academic research.

The results suggest a positive relationship between IC and CG so that, the higher the CG the higher the IC retained by the university. This finding is supported by the 71.1 percent of respondents who indicated that they had no serious intention of leaving their current university.