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

Abstract

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 (VAICe) method is used on 300 UK companies divided into three groups of industries: high-tech, traditional and services. Data require to calculate VAICe 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 performance. Practical implications -The VAICe method could be an important tool for many decision makers to integrate IC in their decision process. Originality/value -This is the first research which has used the data on VA recently calculated and published by the UK DTI in the "Value Added Scoreboard". This paper constitutes therefore a kind of validation of the ministry data.

The impact of intellectual capital on the financial performance of listed Nigerian food products companies

“…Almost all the prior studies on IC over the last two decades for example (Anuonye, 2015;Lina, 2014;Sledzik, 2013;Kamal et al, 2011, Zeghal andMaaloul, 2010) are mostly concentrated on banking and financial sectors and neglect other sectors, food product companies inclusive. Still they do not reach any agreement on the role of firm's performance.…”

The relationship between grow rate of intellectual capital and future profitability of productive companies that accepted in Tehran stock exchange

“…Also, results that obtained by Zéghal, Anis Maaloul, (2010) show that intellectual capital efficiency has a positive effect on financial performance of company. In Maditinos,D et al study (2011), the relation between intellectual capital and return on equity rate confirmed and this is conforming to our results in present study.…”

“…Research history Zéghal and Maaloul (2010) measured the intellectual capital by added-value index and studied its effect on financial, economical and market value performance of 300 Britain's companies. For measuring the intellectual capital, they used the intellectual added-value coefficient.…”

The Effect of Human Resources Input in Enterprise Management in Taiwan

“…Empirical research refers to a knowledge-base as the core competence of enterprises. Through creating competitive advantages and increasing the book value of intangible assets denoted as intellectual capital, there is more evidence to support positive relations with firm performance (Mavridis, 2004;Youndt & Snell, 2004;Goh, 2005;Zeghal & Maaloul, 2010;Cheng et al, 2010). Intellectual capital is based employees' knowledge, expertise, and skills and is used to create trademarks or patents.…”