State-Linked Political Exposure and Intellectual Capital Investment: The Moderating Role of Managerial Ability

Articles in Press

Document Type : Original Article

Authors

Mehdi khorramabadi ¹

Rezvan Pourmansouri ²

¹ Assistant Professor, Department of Accounting, Payame Noor University, Tehran, Iran

² Master of Finance, Department of Financial Management, Science and Research Branch, Islamic Azad University, Tehran, Iran.

10.22067/ijaaf.2026.98476.1646

Abstract

This study investigates the association between state-linked political exposure and intellectual capital investment and examines the moderating role of managerial ability in this relationship. Building on the literature on political uncertainty, political connections, and state ownership, the study focuses on firm-level exposure to state influence through government ownership and long-term debt dependence in Iran’s state-influenced capital market. Using an unbalanced panel of 156 non-financial firms listed on the Tehran Stock Exchange from 2013 to 2024, the hypotheses are tested using two-way fixed-effects panel regressions with one-year-lagged explanatory variables and firm-clustered standard errors. The results show that state-linked political exposure is negatively associated with intellectual capital investment. Moreover, managerial ability positively moderates this relationship, such that higher managerial ability weakens the negative association between state-linked political exposure and intellectual capital investment. These findings indicate that managerial ability functions as an internal organizational capability that helps firms preserve long-term investment in intangible assets under state-linked institutional constraints. The study contributes to the literature by showing how internal managerial capabilities can mitigate the adverse association between structural exposure to state influence and firms’ allocation of resources to intellectual capital. The findings provide implications for corporate managers and policymakers in Iran and other state-influenced emerging markets.

Keywords

State-linked political exposure

Government ownership

Debt dependence

Intellectual capital investment

Managerial ability

Subjects

• Accounting

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