Intellectual capital plays essential role in corporate performance and this paper examines the impact of intellectual capital and its components on the ratio of corporate operating profit on sales as an indicator of economic performance. The study was accomplished among 1035 companies listed on Tehran Stock Exchange and by using the Pulic-2004 model over the period 2005-2012. The results indicate that intellectual value added coefficient, as an indicator of intellectual capital efficiency, preserves a positive effect on sales and efficiency of structural capital and capital employed maintains a positive and meaningful effects on different financial ratios.

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Management teams are always expected to provide transparent financial reports for public. Different characteristics such as honesty, conservatism as well as management capability may play essential role for the success of businesses in supply chain. The proposed study of this paper considers the effects of three factors; namely management capability, management honesty and management conservatism on quality of financial statements. The proposed study collects the information of 92 firms from Tehran Stock Exchange over a nine-year period from 2004 to 2012. Using some statistical tests, the study has concluded that only management honesty could influence on quality of financial reports. In our study, conservatism did not have any impact on the quality of financial reports and it seems that managers have to take more risk in order to reach financial objectives.