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Estimating Intellectual Capital and its Impact on Firms’ Performance : Use of A-VAIC and M-VAIC Models
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The study examined the contribution of intellectual capital to companies’ overall performance. Also, a comparison between the effectiveness of the adjusted value-added intellectual coefficient (A-VAIC) and the modified value-added intellectual coefficient (M-VAIC) model for estimating IC components and analyzing their impact on firms’ performance was attempted. The study was carried out for 405 Indian companies listed on the NSE-500 index for 10 years (2010–2011 to 2019–2020). It was found in the results that intellectual capital is indeed helpful in improving firms’ financial and market performance. However, the M-VAIC is more detailed and precise. Hence, the IC components estimated using it can explain companies’ performance more effectively than the A-VAIC.
Keywords
Intellectual Capital, M-VAIC, A-VAIC, Financial Performance, Market Performance, India.
JELClassification Codes : C4, G32, M41, L1
Paper Submission Date : July 30, 2021 ; Paper sent back for Revision : July 11, 2022 ; Paper Acceptance Date : October 10, 2022 ; Paper Published Online : January 15, 2023
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