Purpose – The purpose of this paper is to analyse the role of value added (VA) as an indicator of intellectual capital (IC), and its impact on the firm's economic, financial and stock market performance.Design/methodology/approach – The value added intellectual coefficient (VAIC™) method is used on 300 UK companies divided into three groups of industries: high‐tech, traditional and services. Data require to calculate VAIC™ method are obtained from the “Value Added Scoreboard” provided by the UK Department of Trade and Industry (DTI). Empirical analysis is conducted using correlation and linear multiple regression analysis.Findings – The results show that companies' IC has a positive impact on economic and financial performance. However, the association between IC and stock market performance is only significant for high‐tech industries. The results also indicate that capital employed remains a major determinant of financial and stock market performance although it has a negative impact on economic perform...

Analysing value added as an indicator of intellectual capital and its consequences on company performance

Purpose – The purpose of this paper is to study the relationship, if any, between the intellectual capital (IC) components, namely human, structural, and physical capitals with the traditional measures of performance of the company, namely profitability, productivity and market valuationDesign/methodology/approach – Value added by IC (VAIC™) for top 25 firms in the drug and pharmaceutical industry in India, for a ten‐year period from 1996 to 2006 is estimated The evaluation is done on the basis of the ranking obtained by each firm in the VAIC index estimated The analysis of correlation and simple linear multiple regression is done for the set of variables representing the performance of the firm and ICFindings – The domestic firms seem to be performing well and efficiently utilizing their IC as seen by the VAIC rankings The empirical analysis found that the human capital was the one which was seen to have the major impact on the profitability and productivity of the firms over the period of study Th

Intellectual capital and corporate performance in Indian pharmaceutical industry

Purpose – This paper aims to examine the intellectual capital performance and its relationship with financial performance of financial institutions in Malaysia for the period 1999 to 2007.Design/methodology/approach – The value added intellectual coefficient (VAICTM) by Pulic is used.Findings – The paper reveals that VAIC and ROA are positively related among Malaysia's finance sector. The results also show that the three components of VAIC are associated with profitability with the explanatory power of 71.6 per cent.Research limitations/implications – This study does not cover all finance companies in Malaysia due to limited data. Future study should therefore further improve on the aspect of coverage.Practical implications – The findings may serve as a useful input for bankers to apply knowledge management in their institutions. Furthermore, the financial institutions may have more definite understanding of the composition of intellectual capital and evaluate its developing tendency periodically.Original...

Intellectual capital performance of financial institutions in Malaysia

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

– The aim of this paper is to raise an awareness of intangible assets among large manufacturing firms in Thailand. As a result, the research is to examine empirically the effects of intellectual capital (IC), and its key components (e.g. human capital, structural capital, and innovation capital) on a manufacturing firm's industrial operations and performance., – The required data for this research are collected from leading manufacturing firms' annual reports. These firms are listed in stock exchange of Thailand 100. The value added intellectual coefficient (VAIC) is adapted to measure IC. Then, the co‐relation analysis and multi‐regression model are applied to learn more about the roles of VAIC and its impacts on a manufacturing firm's performance., – IC positively and significantly affects a manufacturing firm's performance. It impacts all four performance indicators under study, i.e. return on equity, return on assets, revenue growth, and employee productivity. In addition, based on the relatively high adjusted R2, human capital exhibits the relationships with employee productivity., – The findings highlight the role of IC in strengthening a manufacturing firm's long‐term competitiveness advantage. The results from the paper have helped develop policy initiatives for Department of Industrial Work in Thailand such as tax scheme and incentives for R&D spending, promotion of university partnerships for R&D, and training for more effective knowledge management practices.

Interrelationships between intellectual capital and performance

Purpose – The paper seeks to estimate and analyze the Value Added Intellectual Coefficient (VAIC™) for measuring the value‐based performance of the Indian banking sector for a period of five years from 2000 to 2004.Design/methodology/approach – Annual reports, especially the profit/loss account and balance‐sheet of the banks concerned for the relevant years, were used to obtain the data. A review is conducted of the international literature on intellectual capital with specific reference to literature that reviews measurement techniques and tools, and the VAIC™ method is applied in order to analyze the data of Indian banks for the five‐year period. The intellectual or human capital (HC) and physical capital (CA) of the Indian banking sector is analysed and their impact on the banks' value‐based performance is discussed.Findings – The study confirms the existence of vast differences in the performance of Indian banks in different segments, and there is also an improvement in the overall performance over th...

The intellectual capital performance of the Indian banking sector

Ceramic reinforced aluminum matrix composites are increasingly gaining importance because of their specific, particulate reinforced physical features. Machining such materials is a time-consuming process due to their superior physical properties. Moreover, only a few recorded research documents discuss the optimization of machining parameters in the milling of aluminum-titanium diboride (Al/TiB 2 ) composites. Thus, the current study sought to evaluate the effect of process parameters on the face milling machining process while machining Al/TiB 2 metal matrix composite. Reinforcement weight percentage, cutting speed, feed rate, and depth of cut used in milling were used as input parameters in the Taguchi-DEA ranking methodology to evaluate performance metrics, including material removal rate and material's arithmetic average roughness. According to the results of the experimental investigation, cutting speed and reinforcement weight percentage have a greater influence on determining performance metrics in the milling process due to their role in determining impact strength. Among the selected process factors, the ideal combination of reinforcing weight percent (9%), cutting speed (1500 rpm), feed rate (300 mm/min), and depth of cut (0.15) were discovered and evaluated using a confirmation test with 3.14 and 2.34 percent variation in material removal rate (MRR) and surface roughness (Ra) values, respectively.

Multi-Response Optimization of Milling Process Parameters for Aluminum-Titanium Diboride Metal Matrix Composite Machining Using Taguchi - Data Envelopment Analysis Ranking Approach

The relationship between the strategies of operations, supply chain, information system and its impact on supply chain performance

This research paper examines the relationship between women representation on Board of Directors and the financial performance of the NSE-NIFTY50 listed firms. The return on assets and assets turnover ratio is used as measure of firm’s performance; using panel regression for a period of 2014-15 to 2018-19, the impact of specific board characteristics including diversity index is assessed. It is observed that the productivity of these firms is clearly affected by the gender diversity. The profitability ratio is not seeing any significant impact. Though there is an overall increasing trend in the representation of women on board in sample firms, just a small proportion of women may not serve the true purpose in affecting the strategic decision making. Therefore, it is suggested that the representation should be more than the mandated number, to see its true impact on firm performance in the long run.

G. Barathi Kamath

Papers

The intellectual capital performance of the Indian banking sector

Multi-Response Optimization of Milling Process Parameters for Aluminum-Titanium Diboride Metal Matrix Composite Machining Using Taguchi - Data Envelopment Analysis Ranking Approach

The relationship between the strategies of operations, supply chain, information system and its impact on supply chain performance

Women on Board and its Impact on Performance of NIFTY50 Firms

Trends and patterns in Indian sustainable tourism development literature: a bibliometric analysis and visualisation