Title: Investigating the impact of intellectual capital through VAIC model on the financial performance of IT firms in India

Authors: Shiran Khan; Alka Chaturvedi; Sunil Kumar; Arshi Barin; Safika Praveen Sheikh; Alam Ahmad

Addresses: DME Management School, Delhi Metropolitan Education, GGSIPU, New Delhi, India ' Department of Commerce, Kalindi College, University of Delhi, New Delhi, India ' Department of Commerce, DDUC University of Delhi, New Delhi, India ' Jaypee Business School, Jaypee Institute of Information Technology, Noida, India ' Alliance Global, Business School, Alliance University, Bengaluru, India ' College of Administrative and Financial Sciences, Saudi Electronic University (SEU), Saudi Arabia

Abstract: This study investigates the impact of intellectual capital (IC) on the financial performance of Indian IT firms. It also investigates the effects of each component of IC (human capital, structural capital, and financial capital) on company financial performance. The study used annual reports from IT companies spanning ten years, from 2013-2014 to 2022-2023. The researchers employed descriptive statistics, correlation, and multiple regression models to determine the influence and relationship between IC and financial performance. This analysis included a total of 221 firms. The findings revealed that the organisations are effectively employing their IC in value development. The empirical results demonstrated that capital employed efficiency improves corporate productivity as evaluated by ATO, whereas ROE and ROA are positively influenced by human capital efficiency. All of the performance indicators are unaffected by structural capital efficiency.

Keywords: human capital; structural capital; intellectual capital; IC; profitability; value addition; intangible assets.

DOI: 10.1504/IJLIC.2025.147368

International Journal of Learning and Intellectual Capital, 2025 Vol.22 No.2, pp.226 - 249

Received: 18 Apr 2024
Accepted: 26 Mar 2025
Published online: 14 Jul 2025 *

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