In addition, the paper examines the relationship between ic efficiency and financial performance. The main objective of this study is to show the impact of intellectual capital on the financial performance of the indian it sector. In this method, as opposed to the previous one, measurement of intellectual capital is only partially based on market values. Intellectual property is the value of a company or organizations employee knowledge, skills, business training or any proprietary information that. International journal of innovation, creativity and change. Pdf intellectual capital, financial performance and. Intellectual capital contribution to the financial performance of football clubs daria guseva, elena rogova national research university higher school of economics abstract the study investigates the contribution of intellectual capital to the profitability and market capitalisation of. Intellectual capital and its association with financial. Shariah, being the practical aspect, provide guidelines on everyday life. The relationship between intellectual capital and business. This study aims to find the influence of intellectual capital with financial performance in indonesian stock exchange. Apr 12, 20 the purpose of this paper is to examine the intellectual capital ic performance of the australian financial sector for the period 2006. This research paper explores the impact of intellectual capital ic and its various components on financial performance of 100 serbian companies within the real sector which includes all companies in the serbian economy not including banking and insurance. Another index of synthetic measurement of intellectual capital is the calculated intangible value civ.
Intellectual capital, financial performance and companies. Pdf intellectual capital and the financial performance of banks in. Previous research led to a fragmented view of ic, as the relationship between ic and corporate financial performance has been mostly. Intellectual capital is an invisible, yet important resource for companies. Intellectual capital and financial performance in serbia. It also aims to examine the relationship between ic performance and the financial performance of the financial sector.
Pdf impact of intellectual capital on financial performance of. Intellectual capital and financial performance of indian. The analysis was carried for a period from fy 20082009 to 201220. Pdf in the postindustrial economy, intellectual capital ic in the form of human, structural or relational capital is becoming a crucial factor for. Measuring intellectual capital and its effect on financial. Pdf intellectual capital and financial performance in. This paper measures the value added intellectual coefficient vaictm for corporate efficiency performance of the islamic banking sector in malaysia. It concluded that the optimum and efficient use of company resources and intellectual impact on their profitability index. A sample of five major islamic banks in pakistan namely meezan. The empirical scope of the study has been narrowed. Therefore, this study examined the impact of intellectual capital on the financial performance of the listed nigeria oil marketing companies. Pdf intellectual capital and financial performance of. Thus, it becomes important to study ic and its impact on financial performance indicators.
Pdf the purpose of this study is to analyze the relationship between the intellectual capital performance and financial performance of 44 banks. Results show that the coefficient of valueadded intellectual capital is positively related to return on assets and. Intellectual capital and financial performance tahir, shah, khan and afridi the dialogue volume xiii, number 1106 physical and financial resources so as to earn higher profits in the long run. Impact of corporate governance on intellectual capital. Oct 19, 2012 the purpose of this study is to investigate empirically the relationship between intellectual capital and financial performance of 65 indian banks for a period of ten years from 1999 to 2008. The research used the value added intellectual coefficient vaic to ascertain the extent that intellectual capital indices affect financial performance of three nigeria. Intellectual capital and financial performance of wood processing. Laing, dunn and lucas 2010 examined the empirical relation of ic performance and financial performance of hotel industry of australia over the period of 20042007 conducting vaic methodology. Pdf the impact of intellectual capital on financial. The purpose of this study is to analyze the relationship between the intellectual capital performance and financial performance of 44 banks operating in turkey between 2005 and 2014. In the postindustrial economy, intellectual capital ic in the form of human, structural or relational capital is becoming a crucial factor for a firms longterm performance, as it constitutes a competitive advantage from the resourcebased theory perspective. This research paper explores the impact of intellectual capital ic and its various components on financial performance of 100 serbian companies within the real sector which includes all companies in the serbian economy not including banking and. Designmethodologyapproach multiple regression analysis is used to show the relationship of intellectual capital and the firms performance listed on karachi stock exchange kse for the period of 2009 to 2012. The study contributes to the existing literature on intellectual capital ic performance and profitability by extending evidence from pakistan.
The travel agents as a service provider are one of. Does intellectual capital has a positive effect on firm value. Intellectual capital and financial performance of wood. A study of the turkish banking sector nasif ozkan a, sinan cakan b, murad kayacan c a dumlupinar university, school of applied sciences, department of banking and finance, kutahya, turkey b anadolu university, graduate school of social sciences, eskisehir, turkey c dogusan boru sanayi ve ticaret a. This paper studies intellectual capital in companies in taiwan, china. This study aims to find the relationship between intellectual capital, financial performance and firm value to answer these question.
An evaluation of islamic banks in pakistan abstract this study seeks to investigate the relationship between intellectual capital and banks performance in pakistan. The objective of this paper is to empirically investigate the impact of intellectual capitalic on the financial performance and market valuation of firms in india. The impact of intellectual capital on the financial. Pdf intellectual capital and financial performance. They concluded that ice intellectual capital efficiency is based on human. The study reveals and determines the existence of critical structural relationship among corporate governance, intellectual capital efficiency and financial performance. The impact of intellectual capital on firms financial. The purpose of this paper is to examine the intellectual capital ic performance of the australian financial sector for the period 2006. Pdf this study examines whether intellectual capital infl uenced the fi nancial performance of banks in bahrain during the period 2005 to 2007 find, read. Pdf impact of intellectual capital on financial performance and. Considering the knowledgebased intellect as a critical skill of this era. While it is believed that intellectual capital is somehow related to the performance of an organization, there was a. Intellectual capital ic can be briefly defined as the knowledge based equity of. The idiosyncratic and knowledgeintense nature of the financial institutions requires them to rely more on intangible than on tangible resources.
The influence of intellectual capital to financial performance at insurance companies in jakarta stock exchange jse sri iswatia and muslich anshoria a faculty of economics airlangga university abstract to overcome the competition, a company not only focuses on physical capital, but also focuses on intellectual capital. Intellectual capital as a financial performance measurement. The effect of intellectual capital on organizations. Department of accountancy, faculty of management sciences, nnamdi azikiwe university, awka, anambra state, nigeria. The aim of the present study was to investigate the relationship of intellectual capital and financial performance of companies in the biotechnological production of iran. 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. Intellectual capital and accountants in business in a recent kpmg survey of nonexecutive directors neds, more than 60 per cent of the sample said they didnt consider themselves to be very knowledgeable about nonfinancial performance indicators.
The firms financial performance is one of the main factors by investors considered when. It is impossible, however, to measure activities creating intellectual capital by means of it. 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. Consequently, the impact of intellectual capital on organizational performance is high, allowing the validation of the assumed association in 201 luminita maria gogan et al. The intellectual capital performance of the turkish banking sector is generally affected by human capital efficiency hce. International journal of academic research in economics and management sciences january 20, vol.
The increasing of intangible assets and intellectual capitals of firms has shown that traditional accounting systems are not able to calculate intangible assets and intellectual capital sufficiently. This paper appraised the effect of intellectual capital on financial performance of firms in nigeria using the banking industry. Physical capital was found to be the most significant factor improving profitability, productivity and market valuation of the firms. In a study about the effect of intellectual capital on the performance of pharmaceutical companies in jordan, azizi 2010 found a direct relationship between the. Corporate performance measures used in this analysis are profitability, employee productivity, and growth in sales. Thus, the aim of the study is to reveal the relationship between financial performance and intellectual capital in travel agents. For example, cabrita and bontis 2008 study on portuguese banks. The effect of intellectual capital on cost of finance and.
An important role is attributed to the forecasted result. Intellectual capital ic can be briefly defined as the knowledgebased equity of. Intellectual capital and business performance in the. It further examines how corporate governance, bank specific, industry specific, and country specific indicators effect. Measurement of intellectual capital in the indian banking. Intellectual capital, financial performance, return on assets, return on. The first aim of this paper is to provide a systematic investigation on how to measure intellectual capital.
Intellectual capital is a set of knowledgebased assets that are assigned to an organization and are among the features. Over the past two decades, researchers have been motivated to embark on the relationship between intellectual capital ic and performance of financial institutions. Characteristics of intellectual capital although intellectual capital is similar to tangible assets in its potential for generating future cash. It is a challenge, especially for knowledge driven firms, to measure the impact of intangibles on their financial performance. A study of the turkish banking sector nasif ozkan a, sinan cakan b, murad kayacan c a dumlupinar university, school of applied sciences, department of banking and finance, kutahya, turkey. The impact of intellectual capital on firms market value and financial. Ting and lean 2009 examined the intellectual capital performance and its association with financial performance of financial. Intellectual capital and business performance 2 extensively in a variety of academic journals and has completed three books. Ownership structure, intellectual capital, irm performance f and firm value. Intellectual capital ic is considered to be a wealth generator and driver of financial performance thus creating competitive advantage and sustainability in business. The intellectual capital variable as the dependent variable is measured by using the vaic indicator value added intellectual capital while for the independent variable is the financial performance measured by expense efficiency ratio, revenue variance ratio, revenue growth ratio, pad growth ratio, capital expenditure ratio, and financial. Green intellectual capital and financial performance of. The financial performance of any organization fundamentally relies on intellectual capital ic.
Keywords intellectual capital, market value, financial performance, organizations. Intellectual capital, financial performance, vaic, construction firms. Study on international journal of recent technology a nd engineering ijrte issn. Besides efficiency and competitiveness the role the intellectual capital plays is. Pdf intellectual capital and organizations performance in. 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.
Evaluating the relationship between intellectual capital and. Intellectual capital and financial performance of islamic banks 11 based on the overall analyses of tables 6 to 8, the models are a good fit as all six models in the three tables are significant. The independent variable of this research is element of green intellectual capital, consist of intellectual capital and corporate social responsibility csr. Results show that the coefficient of valueadded intellectual capital is positively related to return on assets and market capitalization in. Intellectual capital, financial crisis and performance of. Impact of intellectual capital on financial performance. Purpose this study seeks to investigate the relationship of intellectual capital and firms performance in pakistan. The impact of intellectual capital on organizational performance. The impact of intellectual capital on firms financial performance and market value.
Jrfm free fulltext intellectual capital performance. In the postindustrial economy, intellectual capital ic in the form of human, structural or relational capital is becoming a crucial factor for a firms longterm performance, as. Evaluating the relationship between intellectual capital. Jrfm free fulltext intellectual capital performance and. The research about the relationship between financial performance and intellectual capital that conducted for travel agents, however, is a limited extent.
Hence this study will try to fill the gap from the perspective of resourcebased view. Intellectual capital contribution to the financial. The impact of intellectual capital on organizational. Previous research led to a fragmented view of ic, as the relationship between ic and corporate financial performance has. In terms of bank types, development and investment banks have the. Relational capital is the external linkage of the company with suppliers and customers that enables it to procure and sell goods and services in an effortless manner. The purpose of this paper is to study the associations and impact of the ic indicators on financial performance. Pdf intellectual capital and organizations performance. The relationship between intellectual capital and financial performance of banks has been the subject of countless studies. The influence of intellectual capital to financial. It further examines how corporate governance, bank specific, industry specific, and country specific indicators effect pakistani banks. It includes a total of organisations knowledge and not only the monetary wealth. It also measured intellectual capital based on human capital, relational capital, and structural capital but with limited number of items. Pdf the relationship between intellectual capital and financial.
Procedia social and behavioral sciences 221 2016 194 a 202 hypothesis 4. Intellectual capital and financial performance of banks in. In the postindustrial economy, intellectual capital ic in the form of human, structural or relational capital is becoming a crucial factor for a firms longterm performance, as it constitutes. The impact of intellectual capital on financial performance of. Measuring and reporting intellectual capital research team.
Muhammad and ismail 2009 examined the relationship between intellectual capital and business performance in the malaysian. In fact, it came last on the list of suggested topics. Intellectual property is the value of a company or organizations employee knowledge, skills, business training or any proprietary information that may provide the company. Intellectual capital calculation used public method, that is consisting of. May 19, 2011 this paper studies intellectual capital in companies in taiwan, china.
To determine the impact of intellectual capital on financial performance of sri lankan banks scope of the study the theoretical scope of the study includes two main dimensions such as intellectual capital and financial performance of banks. Ghorbani and associates 83 in a study entitled the impact of intellectual capital on the financial performance of the pharmaceutical industry in iran that was conducted on the 22 pharmaceutical companies. The purpose of this study is to investigate empirically the relationship between intellectual capital and financial performance of 65 indian banks for a period of ten years from 1999 to 2008. Intellectual capital efficiency an d firm s performance. A few studies, based on primary data, have been conducted on measurement of intellectual capital in sectors such as microfinance, banking, etc.
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