Purpose – The purpose of this paper is to examine the intellectual capital (IC) performance of the Australian Financial Sector for the period 2006‐2008. It also aims to examine the relationship between IC performance and the financial performance of the financial sector.Design/methodology/approach – The value added intellectual coefficient (VAIC) approach developed by Pulic is used to determine the IC performance of the Australian financial sector. The required data to calculate different constituents of IC was obtained from the annual reports of Australian Financial Sector companies.Findings – The value creation capability of financial sector in Australia is highly influenced by human capital. About two thirds of the sample companies have very low levels of intellectual capital efficiency. The performance of various components of VAIC and overall VAIC differs across all subsectors in the financial sector. Investment companies have high value VAIC due to higher a level of human capital efficiency, as comp...

Intellectual capital and financial performance: an evaluation of the Australian financial sector

Purpose – The purpose of this paper is to examine whether intellectual capital (IC) creates value in the Serbian information communication technology (ICT) sector. More specifically, it examines the degree to which IC and its key components affect the financial performance of selected ICT companies compared to effects on physical and financial capital. Design/methodology/approach – The analysis included 13,989 Serbian ICT companies during 2009-2013. Value-added intellectual coefficient (VAIC) was used to measure the level of IC contribution to value creation. Measures of financial performance used in the study were return on equity, return on assets, return on invested capital, profitability, and asset turnover. Findings – Results indicate that, when using firm size and leverage as control variables, only capital-employed efficiency has significant effect on financial performance. Finally, the research confirms that there were no significant differences in financial performance among different ICT subsect...

Intellectual capital and financial performance in the Serbian ICT industry

Purpose – This paper seeks to estimate and analyze the relationship between intellectual capital and corporate conventional financial performance measures of Indian software and pharmaceutical companies for a period of five years from 2002 to 2006.Design/methodology/approach – Annual reports, especially the profit and loss accounts and balance sheets of the selected companies for the relevant years have been used to obtain the data. International literatures on intellectual capital with specific reference to measurement tools and techniques have been reviewed. Value Added Intellectual CoefficientTM (VAIC) method is applied for measuring the value based performance of the companies. Corporate conventional performance financial measures used in this analysis are: profitability; productivity; and market valuation. It is an empirical study using multiple regression analysis for the data analysis. The intellectual capital (human capital and structural capital) and physical capital of the arbitrarily selected c...

Indian software and pharmaceutical sector IC and financial performance

The purpose of this paper is to examine the effect of intellectual capital (IC) on financial performance (FP) for Indian companies listed on the Centre for Monitoring Indian Economy Overall Share Price Index (COSPI).,Hypotheses were developed according to theories and literature review. Secondary data were collected from Indian companies listed on the COSPI between 2001 and 2016, and the value-added intellectual coefficient (VAIC) of Pulic (2000) was used to measure IC and its components. A dynamic system generalized method of moments (SGMM) estimator was employed to identify the variables that significantly contribute to firm performance.,Indian listed firms appear to be performing well and efficiently utilizing their IC. Overall, human capital had a major impact on firm productivity during the study period. Furthermore, the empirical analysis showed that structural capital efficiency and capital employed efficiency were equally important contributors to firm’s sales growth and market value. The growing importance of the contribution of IC to value creation was consistently reflected in the FP of these Indian companies.,This study has robust theoretical grounds and employs a validated methodology. The present study extends knowledge of IC among academicians and managers and highlights its contribution to value creation. The findings may help stakeholders and policymakers in developing countries properly reallocate intellectual resources.,This study is the first study to evaluate IC and its relationship with traditional measures of firm performance among Indian listed firms using dynamic SGMM and VAIC models.

The impact of intellectual capital on firm performance: a study of Indian firms listed in COSPI

This article provides a systematic review of the literature on the complex relationships between intellectual capital, innovation and performance. Although these concepts are clearly intertwined, there has been so far and to the best of our knowledge, no attempt to systematically review and integrate the literature examining the relationships between them. Two main streams of literature emerge: on the one hand, some literature focuses on the economic and financial effects of intellectual capital and its components on performance and on the other hand, a small set of survey-based studies aims to delineate these effects adopting a multidimensional approach to performance. Besides these two streams, there is a wealth of literature exploring the effect of isolated element of human, structural or relational capital on performance. Nevertheless, these studies rarely refer to these concepts directly and it is therefore contended that using the concept of intellectual capital may provide interesting insights to illuminate the complex relationships between firms' resources and activities to leverage its intangible assets, innovation and performance. In doing so, it provides an intellectual capital oriented framework to capture the distinctive features of innovation at firm level and hence contributes to the scarce stream of literature focusing on better identifying and delineating innovation effects on performance.

Intellectual capital, innovation and performance: a systematic review of the literature

Purpose – The purpose of this paper is to apply Value Added Intellectual Coefficient (VAIC™) of Pulic to compare quoted information technology and communication companies on the Istanbul Stock Exchange (ISE), in terms of intellectual capital efficiency. This study also examines VAIC™, and its components' impact on company performance.Design/methodology/approach – Multiple regression analysis was employed to identify the variables that significantly contribute to the company performance. Data required to calculate VAIC™ and its components were obtained from the 2005‐2007 annual reports and balance sheets of the companies.Findings – As a whole, all the companies had a relatively higher human capital efficiency than structural and capital efficiencies. In 2007, Turkcell was the most efficient company based on VAIC™ assessment, while Link Bilgisayar and Plastikkart were the least efficient companies. Additionally, the results of the study revealed that factors such as human capital efficiency, firm leverage, ...

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Papers

Intellectual capital in the quoted Turkish ITC sector