Realizing your companys true value by finding its hidden brainpower, harper collins, new york, ny. Intellectual capital, financial performance, return on. The influence of sustainability report disclosure as. In this paper, we try to find the relationship between intellectual capital and business performance from the standpoint of financial performance, the marketplace and economics. Intellectual capital and its association with financial. The importance of intellectual property management technology. Request pdf on jun 1, 2017, muhammad nadeem and others published the importance of intellectual capital for firm performance. The impact of intellectual capital on the financial. Journal of intellectual capital capital intelectual. This study aims to examine the effect intellectual capital ic has on firm performance of australian companies. Intellectual capital, knowledge management practices and firm performance. Hence, leveraging knowledge is often the key to a firms prosperity.
The purpose of this paper is to examine the association of different configurations of intellectual capital ic and knowledge management practices kmp with firm performance. Value added intellectual coefficient vaic as a tool of. Whitingintellectual capital and firm performance in australia. If the inline pdf is not rendering correctly, you can. Intellectual capital is all nonmonetary and noncommunication resources that are fully or.
The topics of organisational learning ol, knowledge management km and intellectual capital ic are receiving increased interest both from the academic community and companies because of the influence of innovation and learning on the achievement of a competitive advantage for the firm in the new economy. There is no commonly agreed definition of intangibles the. Do firms with different profiles concerning their overall levels of ic and kmp differ in terms of innovation and market performance. Muhammad and ismail 2009 examined the relationship between intellectual capital and business performance in the malaysian financial sector, they concluded that intellectual capital has a positive relationship with firm performance measured by roa and profitability. Hce, sce and cee and its impact on financial performance roe, eps and asr of 150 listed companies in singapore stock exchange by using vaic model and concluded that ic performance has significant relation with firms performance and its future performance tan et al. Intellectual capital the commitment and competence of workers is embedded in how each employee thinks about and does work and in how an organization creates policies and systems to get work done. It is based on the assumption that intellectual capital does not produce any value. Panel data regression analysis, which incorporates the horizontal section and time dimension into the analysis, is used in the study. Intellectual property is the value of a company or organizations employee knowledge, skills, business training or any proprietary information that may provide the company. We conduct a study of the literature on this subject and we. Intellectual capital, knowledge management practices and.
Based on 571 listed firms in australia for the period of 20052014 5518 firm. Abstract in this paper we examine the effect of the aggregate measure of intellectual capital and its component human capital efficiency, structural capital efficiency and capital employed efficiency on firm performance market valuation, profitability, productivity from the technology, trading and services, consumer products and hotel sectors listed in the main board of bursa. Impact of intellectual capital on financial performance. These assets form a source of distinct competitive advantage and distinguish the. Intellectual capital and business performance in the. The impact of intellectual capital efficiency on market value 197 industry. Second, the intellectual capital on corporate performance to help recently, scholars are looking for a variety of measurement methods to measure the intellectual capital on firm performance, nielson et al.
Domestic pharmaceutical industry is experiencing a substantial double digit growth in the recent years. Intellectual capital, firm performance, oil and gas sector 1. Introduction the literature generally acknowledges that intellectual capital ic contributes to economic growth, improves firm performance, which in turn leads to sustained competitive advantage huang and liu. International journal of learning and intellectual capital.
The impact of intellectual capital on firm performance is still poorly defined. Studies of listed companies consistently find significant gaps between the accounting book value of organisations and their market value cuganesan et al. Intellectual capital and firm performance in australia. Impact of intellectual capital on financial performance of. The dynamic panel data estimation findings support resource. While it is believed that intellectual capital is somehow related to the performance of an organization, there was a sense of taking it for granted. Allam hamdan, 2018 intellectual capital and firm performance. Pdf the impact of corporate governance and intellectual. Intellectual capital, vaictm, growth of intellectual capital, firm. The purpose of this paper is to investigate the influence of intellectual capital ic on financial performance and, in turn, to provide insights into its impact on emerging economies. Within the literature, there is no precise agreement on what ic concept might be starovic and marr, 2003. Of course, with over 300 billion in ip theft annually in the.
This study examines the effect intellectual capital ic has on firm performance using a sample of australian companies listed between 2004 and 2008. Another way of measurement of intellectual capital belonging to synthetic methods is knowledge capital earnings kce. Challenges and opportunities, iecs 20 intellectual capital and firm performance. Pdf purpose this study aims to examine the effect intellectual capital ic has on firm performance of australian companies find, read. Studying the relationship of intellectual capital to firm performance, in recently study joshi et al. This paper directly measures the impact of intellectual capital management on organizational.
Evidence from australia find, read and cite all the research you. He is a recognised as a leading professional speaker and consultant in the field of intellectual capital, knowledge management and organisational learning all over the world. The impact of intellectual capital efficiency on market value. The purpose of this paper is to examine the intellectual capital ic performance of the australian financial sector for the period 2006. Department of accountancy and business law, working paper series no 12 2010 intellectual capital and firm performance in australia.
The purpose of this paper is to examine the influence of sustainability report sr disclosure as moderating variable towards the impact of intellectual capital ic on companys performance based on 21 companies listed in indonesia stock exchange and listed in national center for sr chapter indonesia for the period 201020. Intellectual capital and firm performance twentyfirst americas conference on information systems, puerto rico, 2015 3 research hypotheses in this paper we propose a research model to explain the impact of intc on firm performance, with innoc. Smes, intellectual capital, organizational innovation, firm performance, australia. This briefing will follow the approach adopted by the meritum guidelines for managing and reporting on intangibles and will use intangibles and intellectual capital interchangeably. The third chapter focuses on the relation between ic and firm performance, how intellectual capital can be measured for example what are the most common models developed to measure ic. Journal of economic literature classification code. International journal of academic research in accounting, finance and management sciences. This study investigates the association between corporate governance and intellectual capital ic disclosure, controlling for firm age and leverage, for a sample of 150 sri lankan listed firms. It also aims to examine the relationship between ic performance and the financial performance of the financial sector. A companys ownership concentration, leverage level, and listing age did not influence its level of icd. So, the identification, measurement and management of intellectual capital have particular importance. This study employed the spearman correlation in order to find the correlation between intellectual capital component efficiency and firm performance. The independent variables comprise various forms of corporate governance attributes.
Pdf intellectual capital and firm performance in australia. The ic efficiency, through valueadded intellectual coefficient vaic model, and its impact on. The fact is that the domestic industry has not yet adequately developed to its full capacity and there are much potential capabilities for further growth and development. Ghorbani and associates 83 in a study entitled the impact of intellectual capital on the financial. Intellectual capital and organizational performance. Intellectual capital, knowledge management practices and firm. Impact of intellectual capital on firm performance. Intellectual capital and firm performance in australia article pdf available in journal of intellectual capital 124. Measurement of intellectual capital in a company artur pazdzior college of enterprise and administration, poland a. The effects of intellectual capital on performance in. Reed 2000 conducted an empirical test the influence of intellectual capital and performance in the banking industry. Intellectual capital and firm performance twentyfirst americas conference on information systems, puerto rico, 2015 3 research hypotheses in this paper we propose a research model to explain the impact of intc on firm performance, with innoc as a mediating variable and environmental dynamism as a moderating variable. The impact of corporate governance and intellectual capital on firms performance and corporate social responsibility disclosure.
They should also provide the infrastructures needed for to achieve a virile human capital in the system. Intellectual capital and business performance 2 extensively in a variety of academic journals and has completed three books. Intellectual property is the value of a company or organizations employee knowledge, skills, business training or any proprietary information that. Only owing to its implementation, productivity of material and financial resources grows. A study of the resourcebased and stakeholder views according to the resourcebased view of the firm, firms gain competitive. Original article the impact of intellectual capital efficiency on market value. Intellectual capital and firm performance in australia, journal of intellectual capital, vol. Specifically, a plethora of intellectual capital measurement and reporting models have been developed by academics, consultants and practitioners. A study of the resourcebased and stakeholder views according to the resourcebased view of.
The article raises the issue of intellectual capital. The link between organisational performance and intellectual capital is becoming more and more an interesting issue, especially in times of severe economic turbulence, when companies are seeking for new solutions in order to survive and develop their business. Pdf intellectual capital and business performance in. Summary the intellectual capital of a firm is the sum total of its human capital, structural capital and relational capital. I have written about the importance of protecting intellectual property ip, mainly with small businesses. Content and determinants of intellectual capital disclosure.
Australian journal of business and management research. Intellectual capital is used strategically to improve firm performance. Hence this study will try to fill the gap from the perspective of resourcebased view. Pdf purpose this study sheds light on the relation between intellectual. The fourth chapter is an analysis of three already existing.
Pdf intellectual capital and firm performance of us. The study revealed that intellectual capital and profitability was positively related among malaysias finance industry. The importance of intellectual capital for firm performance. Empirical study in australia 0 download 2 pages 357 words add in library click this icon and make it bookmark in your library to refer it later. Sep 27, 2017 over the past seven years, i have written about the importance of protecting intellectual property ip, mainly with small businesses. The test result shows that intellectual capital has a positive effect on firm value, intellectual capital has a positive effect on financial performance, financial performance has a positive effect on firm value, and financial performance proved to intervene the relationship between intellectual capital and firm value.
The effect of the intellectual capital on business. This study investigates the impact of intellectual capital efficiency on firm performance in australia. The relationship between intellectual capital and business. Intellectual capital disclosures by australian companies. The effect of the intellectual capital on business performance. An overview of the intellectual capital ic intellectual capital is relatively new topic not only within the accounting and finance discipline but also within the business and management arena.
Ahmed bounfour, 2003,the icdval approach, journal of intellectual capital, vol. Intellectual capital and company performance literature. Diverse workforce ensures a high level of performance and productivity for human and intellectual capital and provides business organizations a competitive advantage in. Pdf the purpose of this empirical study is to investigate the three elements of intellectual capital, i. Jul 12, 2017 this study investigates the impact of intellectual capital efficiency on firm performance in australia. The icdval approach ahmed bounfour article information. Oct 25, 2011 this study aims to examine the effect intellectual capital ic has on firm performance of australian companies. There is no accounting for intellectual capital in australia.
Ic is measured using pulics value added intellectual coefficient vaic and its components and both a direct and a moderating relationship between vaic and performance are analysed. Ic is measured using pulics value added intellectual coefficient vaic and its components human, structural and capital employed efficiencies hce, sce. First, intellectual capital is a firms only appreciable asset. As intellectual capital is increasingly gaining recognition for a much greater significant role in creating and maintaining firms competitive advantage tayles et al.
Department of accountancy and business law, working paper. Ic is measured using pulics value added intellectual coefficient vaic and its components human, structural and capital employed efficiencies hce, sce, cee. Measuring and reporting intellectual capital research team. This study analyzes the relationship between the intellectual capital performance and financial performance of 44 banks operating in turkey between 2005 and 2014 using the vaic model. Razafindrambinina and anggreni 2008 investigated the association between intellectual. The study examined the perceptions of managers in these companies as to the usefulness and potential use for intellectual capital indicators, barriers to their development and. An empirical study from iranian pharmaceutical companies gholamhossein mehraliana,e, hamid reza rasekha,b, peyman akhavan c and mohammad reza sadehd adepartment of pharmacoeconomics and pharmaceutical management, school of pharmacy, shaheed beheshti university of medical. Nov 05, 2018 the purpose of this paper is to investigate the influence of intellectual capital ic on financial performance and, in turn, to provide insights into its impact on emerging economies. The impact of intellectual capital efficiency on market. Intellectual capital reporting frameworks in response, the field of intellectual capital has received significant professional and academic interest. Evidence from australian listed companies article pdf available. Intellectual capital, firm performance, australia, vaic.