Charting intellectual capital performance of the gateway to China

By S. K. Chu, Kin Hang Chan, Wendy W. Y. Wu. 2011

182 citations recorded by the source corpus.

Purpose – This paper aims to investigate whether intellectual capital (IC) has an impact on the financial aspects of organizational performance as well as attempting to identify the IC components that are associated with corporate financial performance indicators that signal organizational growth.Design/methodology/approach – This study drew on financial data from publicly available annual reports of all the constituent companies of the Hang Seng Index of the Hong Kong Stock Exchange for the years 2001‐2009. Following the value added intellectual coefficient™ (VAIC) methodology, regression models were constructed to examine the relationships between IC and the corporate financial performance indicators.Findings – Evidence was found to suggest that IC, as measured by VAIC, was positively associated with profitability of businesses. In particular, structural capital, as a key component of IC, played a notable part in enhancing corporate profitability, and showed a growing trend in its significance. Empirica...

Subfields: Clinical Psychology, Electronic, Optical and Magnetic Materials, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/758c96d18c69387401d3418684d1cb82194a9a06

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Clinical Psychology

1. A. Alhassan
2. Jian Xu
3. N. Asare
4. Neha Smriti
5. N. Das

In Electronic, Optical and Magnetic Materials

1. A. Alhassan
2. D. Cahill
3. M. Al-Musali
4. Monika Kansal
5. Mahesh Chandra Joshi
6. J. Sidhu
7. Binghan Wang
8. Jian Xu

In Strategy and Management

1. A. Alhassan
2. N. Asare
3. M. Al-Musali
4. K. Ismail
5. Jian Xu
6. D. Cahill
7. Hafiz Mustansar Javaid
8. Hongxing Yao

Citations in the corpus

• Intellectual Capital and its Effect on Financial Performance of Banks: Evidence from Saudi Arabia (2014, background): “…non-banking sectors producing mixed results (see e.g. Komnenic & Pokrajcic (2012) in Serbia, Mehralian, Rajabzadeh, Sadeh, & Rasekh, (2012) in Iran, Chu, Chan, and Wu (2011) in Hong Kong, Ku Ismail and Abdul Karem (2011) in Bahrain, Maditinos et al. (2011) in Greece, Wang (2011) in Taiwan, Zeghal…”
• Intellectual Capital, Financial Performance and Companies’ Sustainable Growth: Evidence from the Korean Manufacturing Industry (2018, background): “Second, the synergy effects between different types of tangible and intangible assets are not taken into consideration in this model [44].”
• Intellectual capital and financial performance: an evaluation of the Australian financial sector (2013, methodology): “Chu et al. (2011) criticised the VAIC approach for its inability to measure IC in companies with negative book value or negative operating profit.”
• Intellectual capital and bank productivity in emerging markets: evidence from Ghana (2016, methodology): “…2010; Branco et al., 2011; Haji et al., 2012; Wagiciengo and Belal, 2012; Asare et al., 2013) and its performance and/or efficiencies using the VAIC model (see Makki et al., 2008; Kamath, 2008; Abdulsalam et al., 2011; Clarke et al., 2011; Chu et al., 2011; Maditinos et al., 2011; Lu et al., 2013).”
• Intellectual Capital Performance and Profitability of Banks: Evidence from Pakistan (2019, background): “A number of studies have found a negative impact of credit risk on profitability (Dietrich and Wanzenried 2011; García-Herrero et al. 2009; Yao et al. 2018).”