Title: Intellectual capital and performance of Indian companies: an empirical investigation

Authors: Shashi Kapoor; Ashish Saihjpal

Addresses: University Business School, Panjab University Regional Centre, Ludhiana, India ' University Business School, Panjab University Regional Centre, Ludhiana, India

Abstract: This paper aims to investigate relationship between IC and firm performance. Value added intellectual coefficient (VAIC) model developed by Pulic (2000) is used to measure the IC. In order to assess the performance of companies, return on assets, assets turnover ratio and market capitalisation to book value ratio are used as indicator of profitability, productivity and market valuation. Secondary data was extracted for a sample of 463 Indian companies. Descriptive statistics, correlation analysis and multiple regression model were applied for conducting necessary analysis. Findings revealed that VAIC is having significant relationship with measures of profitability only. During component investigation, it is found that capital employed efficiency has relationship with all measures of performance and human capital efficiency has relationship with profitability only.

Keywords: firm performance; human capital; intellectual capital; knowledge resources; value added intellectual coefficient; VAIC^TM.

DOI: 10.1504/IJLIC.2022.126306

International Journal of Learning and Intellectual Capital, 2022 Vol.19 No.6, pp.608 - 623

Received: 14 Aug 2021
Accepted: 16 Mar 2022
Published online: 19 Oct 2022 *

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