IDEAS home Printed from https://ideas.repec.org/a/bjz/ajisjr/2180.html
   My bibliography  Save this article

A Study of the Impact of Value-Added Efficiency on Profitability and Market Value in the Indian Pharma Industry

Author

Listed:
  • Shireen Rosario
  • Chandra Sen Mazumdar

Abstract

The aim of this paper is to highlight the growing influence of Intellectual Capital (IC) on the profitability and market valuation, especially in knowledge-based industries. The scope of this paper is restricted to the Indian Pharmaceutical Industry, which is highly dependent on IC. This study employs the measure of Value-Added Intellectual Coefficient (VAIC) to assess impact of IC on the profitability and market valuation and to assess the growth of VAIC and its components among the companies over the years selected for the study. The study uses 22 Pharmaceutical companies listed in the Bombay Stock Exchange for a period of 12 years from the financial year 2008-09 to 2019-20. By using Path Analysis, the study demonstrates that the components of VAIC have an impact on the ROCE and market value, which has only grown as compared to earlier studies & years. The study also demonstrates that high sales and profits need not necessarily result in high VAIC.

Suggested Citation

  • Shireen Rosario & Chandra Sen Mazumdar, 2022. "A Study of the Impact of Value-Added Efficiency on Profitability and Market Value in the Indian Pharma Industry," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 11, January.
    • Handle: RePEc:bjz:ajisjr:2180
    DOI: https://doi.org/10.36941/ajis-2022-0019
    as

    Download full text from publisher

    File URL: https://www.richtmann.org/journal/index.php/ajis/article/view/12765
    Download Restriction: no
    File URL: https://www.richtmann.org/journal/index.php/ajis/article/view/12765/12364
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.36941/ajis-2022-0019?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bjz:ajisjr:2180. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Richtmann Publishing Ltd (email available below). General contact details of provider: https://www.richtmann.org/journal/index.php/ajis .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.