Intellectual capital and firm performance in Australia

Abstract

This study examines the effect intellectual capital (IC) has on firm performance using a sample of Australian companies listed between 2004 and 2008. IC is measured using Pulic's Value Added Intellectual Coefficient (VAIC) and its components and both a direct and a moderating relationship between VAIC and performance are analysed. The results suggest that there is a direct relationship between IC and performance of Australian publicly listed firms, particularly with capital employed efficiency and to a lesser extent with human capital efficiency. A positive relationship between IC (human and structural capital) in the prior year and performance in the current year is also found. Evidence also suggests the possibility of a moderating relationship between IC and physical and financial capital which impacts on firm performance.

The Effect of Intellectual Capital on Organizational Performance: The Mediating Role of Knowledge Sharing

“…According to [55], this so called new economy, also known as the knowledge economy, has shifted attention to the intangible assets possessed by organizations and how they are managed. This is supported by [56] who stated that for organizations operating in this new economy, intellectual not physical capital is considered to be an organization's most prized asset. The reason why intellectual capital is considered valuable relates to the fact that intangible assets are more important than tangible assets [57].…”

Intellectual Capital & Firm Performance: An Empirical Study on the Oil & Gas Sector of Pakistan

“…The study indicated that human capital is most important component of intellectual capital and all three dimensions as proposed by VAIC are significant explanatory variables for profitability as measured by return in asset. Clarke, Seng and Whiting (2011) conducted same type of study in Australian business context. Using VAIC model as proposed by Pulic, the study found a direct impact of intellectual capital and firm performance and dimensions of capital employed efficiency and to a lesser extent human capital efficiency are important in this regard.…”

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

“…This is because, VAIC technique is distinctive due to easy availability of audited financial data and it is also less criticized model compared to other models as well as the most recent model among them. Additionally, VAIC has been adopted in several studies to examine the relationship between IC and firms performance (Clarke et al, 2011;Maditinos et al, 2011;AnneLaure and Nick, 2013).…”