Impact of Intellectual Capital on Firm Performance in Indian It Companies
Journal of Contemporary Issues in Business and Government,
2021, Volume 27, Issue 2, Pages 4335-4340
AbstractThe relationship of intellectual capital and firm performance have shown mixed results that lead more attention among the research scholars in global. This study focus on the relationship between intellectual capital and financial performance of IT companies in India by using value-added intellectual capital coefficient (VAICTM) model. The researcher selected sample of 88 IT companies on the basis of market capitalization and compiled data of this company from audited annual reports during the period of 2009-2018. Accordingly, the multiple regression results show that both VAIC and components of VAIC (except CEE) significantly predicted the financial performance of Indian IT companies. Besides, structural capital efficiency was found strong significant predator of ROA (.299) and human capital efficiency for sales growth (.594). Thus, Indian IT companies advised to give more attention of investment in employees and management structure and policies to increase their financial performance.
- Bontis, N. (2001). Assessing knowledge assets: A review of the models used to measure intellectual capital. International Journal of Management Reviews, 3(1), 41–60. https://doi.org/10.1111/1468-2370.00053
- Guthrie, J., & Petty, R. (2000). Intellectual capital: Australian annual reporting practices. Journal of Intellectual Capital, 1(3), 241–251. https://doi.org/10.1108/14691930010350800
- Joshi, M., Cahill, D., Sidhu, J., & Kansal, M. (2013). Intellectual capital and financial performance: An evaluation of the Australian financial sector. Journal of Intellectual Capital, 14(2), 264–285. https://doi.org/10.1108/14691931311323887
- Mohammed, A. A., & Irbo, M. M. (2018). Intellectual Capital and Firm Performance Nexus: Evidence from Ethiopian Private Commercial Banks. International Journal of Learning and Intellectual Capital, 1(1), 1. https://doi.org/10.1504/ijlic.2018.10012870
- Mondal, A., & Ghosh, S. K. (2012). Intellectual capital and financial performance of Indian banks. Journal of Intellectual Capital, 13(4), 515–530. https://doi.org/10.1108/14691931211276115
- 6. Weqar, F., & Haque, S. M. I. (2020). Intellectual capital and corporate financial performance in India’s central public sector enterprises. International Journal of Learning and Intellectual Capital, 17(1), 77–97. https://doi.org/10.1504/IJLIC.2020.105323
- Scafarto, V., Ricci, F. and Scafarto, F. (2016). Intellectual capital and firm performance in the global agribusiness industry: the moderating role of human capital. Journal of Intellectual Capital, 17( 3), 530–552.
- Sveiby, K. E., (1997). The New Organizational Wealth: Managing and Measuring Knowledge-based Assets, San Francisco, Berrett-Koehler.
- Brennan, N. (1999). Reporting and managing intellectual capital: evidence from Ireland. Paper presented at the International Symposium Measuring and Reporting Intellectual Capital: Experiences, Issues and Prospects, June, Amsterdam
- Jabbar, S., & Afza, T. (2014). Relationship between intellectual capital and financial performance of Pakistani non-financial firms and a comparative study of textile and chemical industry. Vidyabharati International Interdisciplinary Research Journal, 3(1), 67-80.
- Kim, S. H., & Taylor, D. (2014). Intellectual capital vs the book-value of assets: A valuerelevance comparison based on productivity measures. Journal of Intellectual Capital, 15(1), 65-82.
- Baye, F. M., Jean, A., & Fonkem, N. M. (2014). Impact of intellectual capital efficiency on the financial performance of financial institutions in Yaounde, Cameroon. International Journal of Arts and Commerce, 3(4), 166-187.
- Budiandriani, B., & Mahfudnurnajamuddin, M. (2014). The influence of intellectual capital components to financial performance and value of the firm registered in Indonesia stock exchange. Research in Applied Economics, 6(1), 216-224.
- Maditious, D., Chatzoudes, D., Tsairidis, C., & Theriou, G. (2011). The impact of intellectual capital on firms’ market value and financial performance. Journal of Intellectual Capital, 12(1), 132-151.
- Kamukama, N., Ahiauzu, A., & Ntayi, J. M. (2011). Competitive advantage: Mediator of intellectual capital and performance. Journal of Intellectual Capital, 12(1), 152-164.
- Zeghal, D., & Maaloul, A. (2010). Analyzing value added as an indicator of intellectual capital and its consequences on company performance. Journal of Intellectual Capital, 11(1), 39-60.
- Mavridis, D. G. (2005). Intellectual capital performance drivers in the Greek banking sector. Management Research News, 28(5), 43-62.
- Appuhami, A. R. (2007). The impact of intellectual capital on investors’ capital gain on shares: An empirical investigation on Thai banking, finance & insurance sector. International Management Review, 3(2), 14-25.
- Chang, W. S., & Hsieh, J. J. (2011). Intellectual capital and value creation- Is innovation capital a missing link?. International Journal of Business and Management, 6(2), 312.
- Claxson Max, B.E. (1995). A Stakeholder Framework for Analyzing and Evaluating Corporate Social Performance. The Academy of Management Review, 20(1), 92-117.
- Article View: 21
- PDF Download: 19