Nexus between Credit Rating, Intellectual Capital, and Financial Performance: A Panel Data Analysis of Select Large-Cap Indian Companies

Volume 11, Issue 2, 2026

International Journal of Commerce and Management Studies, ISSN 2456-3684

Paper Title

Author Name and Affiliation

Anandi Sarkar Pyne

Amity University Kolkata, Kolkata, West Bengal, India, Email: aspyne@kol.amity.edu

2. Neha Karmokar

Amity University Kolkata, Kolkata, West Bengal, India, Email: neha.karmakar@s.amity.edu

Abstract

The aim of this research is to explore the relationships between credit rating (CR), intellectual capital (IC), and financial performance (FinPerf) of a set of large-cap Indian firms, and determine if firm characteristics explain credit ratings received by the aforementioned firms. For this research panel data was used from fifty major Indian firms from the financial services, FMCG, IT, energy, infrastructure, automobile and metal industries from 2015 to 2025. Pooled Ordinary Least Squares (POLS) regression analysis, ordered logistic and ordered probit regressions and one-way ANOVA will be applied using STATA software package. Intellectual capital will be measured using the Modified Value Added Intellectual Coefficient (MVAIC), financial performance with the use of return on total assets (ROTA) and firm characteristics with firm age, size, and leverage. Results show that after controlling for firm age and size there is a significant relationship between credit rating and financial performance, which is supported by ordered-logistic and heteroskedasticity robust estimations but is weakened by cluster analysis based on the firm. Intellectual capital shows a significant relationship with financial performance as well. The age and leverage of a firm is shown to be significant factors for both credit rating and intellectual capital, while the firm size exhibits significant results only in some of the estimation methods. There is considerable difference in financial performance, credit rating and intellectual capital between different sectors. The results can be useful for the credit rating and intellectual capital literature in the emerging markets and have practical implications for business management.

Keywords

Credit Rating, Intellectual Capital, Financial Performance, Return on Total Assets, Panel Data, India

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DOI

DOI: 10.67061/ijcams.2026.vol.11.issue.02.4085

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