Title: Determinants of market to book value and financial performance of Chinese listed firms: implication of MVAIC model

Authors: Shapan Chandra Majumder; Bismark Kusi Appiah; Obambi Chardel Cardorel

Addresses: Department of Economics, Comilla University, Cumilla-3506, Bangladesh ' School of Economics, Shandong University, Jinan-250100, China ' School of Economics, Shandong University, Jinan-250100, China

Abstract: The main motive of this current study is to measure the efficiency of intellectual capital along with its components by using modified value-added intellectual coefficient (MVAIC) and to find its impact on the market as well as financial performance of firms in China. This tool is the modified form of Pulics' VAIC tool which is widely used in numerous studies worldwide in order to find empirical evidence between the relations among intellectual capital with firms' market value. MVAIC is adopted in this study for the very first time in China which is the unique point of this study. The results show the cement industry has a different relationship between intellectual capital and market value and financial performance as compared to other sectors of the economy. This research is of enormous importance that can help CEOs, managers, shareholders as well as investors to analyse firms' performance and to obtain information that is explicitly missing in the financial reports of the firms.

Keywords: China; modified value-added intellectual coefficient; MVAIC; intellectual capital; financial performance.

DOI: 10.1504/IJLIC.2021.114612

International Journal of Learning and Intellectual Capital, 2021 Vol.18 No.2, pp.131 - 153

Received: 28 Jul 2019
Accepted: 08 Jul 2020
Published online: 28 Apr 2021 *

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