Open Access Subscription Access
Open Access Subscription Access
Intellectual Capital Efficiency and Financial Performance of IT Companies in India:A Panel Data Analysis
This study analyzes the effect of Intellectual Capital Efficiency on firm performance of IT companies in India. NSE-IT index, consisting 10 IT companies was chosen for the study, the ICE was gauged using Value Added (VA) and Value Added Intellectual Coefficient (VAICTM). The study uses secondary data for 10 years from 2007 to 2016 and empirically analyses the relationship of VA, VAICTM and the components of VAICTM with Firm performance indicators (ROA, ROE and NPM) of IT sector. The result of the study reports the presence of a positive relationship among both VAICTM and VA with firm performance indicators. The presence of relationship between components of VAICTM and financial performance indicators shows a positive relationship of Value Added Structural Capital (STVA) with ROA and Net Profit Margin (NPM) but a negative relationship with ROE. Value Added Human Capital (VAHC) shows positive relationship with ROA and negative relationship with ROE. Value Added Capital Efficiency shows no significant relationship with any of the Performance measures.
Value Added (VA), NSE-IT Index, Net Profit Margin, Components of Intellectual Capital, Value Added Intellectual Coefficient (VAICTM).
- Al-musali, M. A. K., Nor, K., and Ku, I. (2014). Intellectual capital and its effect on financial performance of banks : Evidence from Saudi Arabia. Procedia - Social and Behavioral Sciences, 164(August), 201–207. https://doi.org/10.1016/j.sbspro.2014.11.068
- Australian Journal of Business and Management Research. (2012), 2(08), 24–31.
- Authors, F. (2007). The intellectual capital performance of Indian banking sector. https://doi.org/10.1108/14691930710715088
- Authors, F. (2010). Intellectual capital in the quoted Turkish ITC sector. https://doi.org/10.1108/14691931011085678
- Authors, F. (2014). Intellectual capital and performance of pharmaceutical firms in India. https://doi.org/10.1108/JIC-04-2013-0049
- Authors, F. (2015). The relationship between intellectual capital , firms ’ market value and financial performance Empirical evidence from the ASEAN. https://doi.org/10.1108/JIC-09-2014-0104
- Bhatia, A. (2015). Intellectual Capital and Financial Performance of Indian Software Industry : A Panel Data Analysis, 7(8), 33–43.
- Bontis, N. (2013). Intellectual capital and performance within the banking sector of Luxembourg and Belgium. https://doi.org/10.1108/14691931311323896
- Capital, I., Firm, T., Performance, T. F., and Variable, I. (2015). The Influence of Intellectual Capital on The Firm ’ s Value with The Financial Performance as Intervening Variable, 211(September), 292–298. https://doi.org/10.1016/j.sbspro.2015.11.037
- Chen, M. (2006). An empirical investigation of the relationship between intellectual capital and firms ’ market value and financial performance. https://doi.org/10.1108/14691930510592771
- Economic, A., and Review, F. (2014). The Impact Of Intellectual Capital On Return Of Fixed Assets And Firms’ Total Assets Return Which Listed on The Tehran Stock Exchange Ali Aliyani Nezhad Oktay Yamrali Mohammad Reza Aboujafari Contribution / Originality, 4(10), 1409–1419.
- Jameelah, M., Osman, I., and Musa, S. (2015). Effect of Intellectual Capital on Organizational Performance, 211(September), 207–214. https://doi.org/10.1016/j.sbspro.2015.11.085
- Joshi, M., Cahill, D., Sidhu, J., and Kansal, M. (2013). sector Intellectual capital and financial performance : an evaluation of the Australian financial sector. https://doi.org/10.1108/14691931311323887
- Jouzani, J. J. (n.d.). The relationship between intellectual capital and organizational intelligence : case study of Sepah Bank , Golestan Province , Iran.
- Maheran, N., and Muhammad, N. (2004). Intellectual Capital Efficiency and Firm ’ s Performance : Study on Malaysian Financial Sectors, 1(2), 206–212.
- Mehralian, G., and Reza, H. (2012). The Impact of Intellectual Capital Efficiency on Market Value : An Empirical Study from Iranian Pharmaceutical Companies, 11(November 2011), 195–207.
- Mehri, M., Umar, M. S., Saeidi, P., and Hekmat, R. K. (2017). Intellectual Capital and Firm Performance of High Intangible Intensive Industries : Malaysia Evidence, 9(9), 146–155. https://doi.org/10.5539/ass.v9n9p146
- Mojtahedi, P. (2013). The Impact of Intellectual Capital on Earning Quality : Evidence fromMalaysian Firms, 7(2), 535–540.
- Morariu, C. M., and Morariu, C. M. (2014). Intellectual capital performance in the case of Romanian public companies. https://doi.org/10.1108/JIC-05-2014-0061 No Title. (1997), 1–33.
- Ousama, A. A. (2015). Intellectual capital and financial performance of Islamic banks, 12(1).
- Ranani, H. S., and Bijani, Z. (2014). The Impact of Intellectual Capital on the Financial Performance of Listed Companies in Tehran Stock Exchange, 4(1), 119–127. https://doi.org/10.6007/IJARAFMS/v4-i1/548
- Ricci, F. (2016). Intellectual capital and firm performance in the global agribusiness industry The moderating role of human capital. https://doi.org/10.1108/JIC-11-2015-0096
- Shiri, M. M., Mousavi, K., Pourreza, A., and Ahmadi, S. (2012). The Effect of Intellectual Capital on Market Value Added, 2(7), 7214–7226.
- Wei, I., and Ting, K. (2013). Measuring intellectual capital efficiency in the Malaysian software sector. https://doi.org/10.1108/14691931311323904
- Wu, M., Lee, Y., and Wang, G. (2012). To Verify How Intellectual Capital Affects Organizational Performance in Listed Taiwan IC Design Companies with Considering the moderator of Corporate Governance, 8(1), 20–32.
- Zahid, A. (2011). Intellectual Capital Performance And Its Impact On Corporate Performance : An Empirical Evidence From Modaraba Sector of Pakistan ., 1(5), 8–16.
Abstract Views: 84
PDF Views: 1