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Intellectual Capital and Financial Performance:A Study of Selected BSE S & P 500 Listed Firms


Affiliations
1 Department of Commerce, Maharshi Dayanand University, Rohtak., India
     

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In the present scenario, no business can excel in the market by virtue of tangible assets only; it is the intellectual capital or intangible which plays significant role in enhancing the financial performance of a business firm. In this study, an attempt has been made is to estimate the relationship, if any between Firms financial performance and intellectual capital and its constituents. And also to study the significant role of intellectual capital coefficient in firm’s performance. To provide a sound conceptual base for developing business model for value creation. In this empirical paper, analytical research design has been used. Pulic’s VAIC (modified version) has been used to estimate the intellectual capital coefficient of BSE SandP 500 listed firms from 2007-2016. Data has been collected from CMIE and collected data has been analysed using Pearson correlation and linear multiple regression. Findings shows that almost all firms under study have good VAIC score means above 4 and the top VAIC scorer firms were mainly from refinery, metal, cement, steel, tobacco. Correlation analysis and Linear multiple regression analysis shows that financial performance has significant relationship with the intellectual capital and its constituents except structural capital (STVA) but significant relationship between innovation capital (Rand D/BV of shares). This paper will definitely contribute in the existing literature and also this is the first study to examine the relationship between intellectual capital and financial performance pertaining to BSE SandP 500.

Keywords

Intellectual Capital, VAICtm, Financial Performance, Value Creation, BSE SandP 500 Firms.
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  • Intellectual Capital and Financial Performance:A Study of Selected BSE S & P 500 Listed Firms

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Authors

Priti Sharma
Department of Commerce, Maharshi Dayanand University, Rohtak., India

Abstract


In the present scenario, no business can excel in the market by virtue of tangible assets only; it is the intellectual capital or intangible which plays significant role in enhancing the financial performance of a business firm. In this study, an attempt has been made is to estimate the relationship, if any between Firms financial performance and intellectual capital and its constituents. And also to study the significant role of intellectual capital coefficient in firm’s performance. To provide a sound conceptual base for developing business model for value creation. In this empirical paper, analytical research design has been used. Pulic’s VAIC (modified version) has been used to estimate the intellectual capital coefficient of BSE SandP 500 listed firms from 2007-2016. Data has been collected from CMIE and collected data has been analysed using Pearson correlation and linear multiple regression. Findings shows that almost all firms under study have good VAIC score means above 4 and the top VAIC scorer firms were mainly from refinery, metal, cement, steel, tobacco. Correlation analysis and Linear multiple regression analysis shows that financial performance has significant relationship with the intellectual capital and its constituents except structural capital (STVA) but significant relationship between innovation capital (Rand D/BV of shares). This paper will definitely contribute in the existing literature and also this is the first study to examine the relationship between intellectual capital and financial performance pertaining to BSE SandP 500.

Keywords


Intellectual Capital, VAICtm, Financial Performance, Value Creation, BSE SandP 500 Firms.

References