Analysing value added as an indicator of intellectual capital and its consequences on company performance

By Daniel Zéghal, Anis Maaloul. 2010

634 citations recorded by the source corpus.

Purpose – The purpose of this paper is to analyse the role of value added (VA) as an indicator of intellectual capital (IC), and its impact on the firm's economic, financial and stock market performance.Design/methodology/approach – The value added intellectual coefficient (VAIC™) method is used on 300 UK companies divided into three groups of industries: high‐tech, traditional and services. Data require to calculate VAIC™ method are obtained from the “Value Added Scoreboard” provided by the UK Department of Trade and Industry (DTI). Empirical analysis is conducted using correlation and linear multiple regression analysis.Findings – The results show that companies' IC has a positive impact on economic and financial performance. However, the association between IC and stock market performance is only significant for high‐tech industries. The results also indicate that capital employed remains a major determinant of financial and stock market performance although it has a negative impact on economic perform...

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/37a9bb637b42ac3ecc5ea622cd250c1d0cd3ea05

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In Accounting

1. Neha Smriti
2. N. Das
3. A. Alhassan
4. D. Cahill
5. M. Al-Musali
6. A. Thomas
7. Ruei-Yuan Chang
8. S. K. Chu

In Strategy and Management

1. Neha Smriti
2. N. Das
3. A. Alhassan
4. N. Asare
5. M. Al-Musali
6. K. Ismail
7. Mahesh Chandra Joshi
8. D. Cahill

Citations in the corpus

• The impact of intellectual capital on firm performance: a study of Indian firms listed in COSPI (2018, background): “Department of Business, Innovation and Skills situated in the UK employs this an indicator of IC (Zeghal and Maaloul, 2010).”
• A European empirical study of the relationship between firms’ intellectual capital, financial performance and market value (2017, methodology): “Moreover, according to Zéghal and Maaloul (2010), VAIC is used by the UK’s Department for Business, Innovation and Skills as the indicator of IC’s use in firms which contributes to the VAIC model validity.”
• Intellectual Capital and its Effect on Financial Performance of Banks: Evidence from Saudi Arabia (2014, background): “Human capital is defined as the knowledge, qualifications, experiences, and skills of employees that they take with them when they leave the firm (Zeghal & Maaloul, 2010).”
• The impact of higher education on entrepreneurial intention and human capital (2018, background): “Introduction Over the last three decades, the intangible assets that are recognised as intellectual capital (hereafter IC) have awakened an increasing interest among a range of researchers as a fundamental driver of national economic growth and business development (e.g. Chen et al., 2005; Zéghal an”
• An Integrated Model to Explain How Corporate Social Responsibility Affects Corporate Financial Performance (2015, background): “Zeghal and Maaloul [49] also defined intellectual capital”