Advanced Search
MyIDEAS: Login

The Impact of Intellectual Capital on the Financial Performance of Listed Companies in Tehran Stock Exchange

Contents:

Author Info

  • Hossein Sharifi Ranani

    ()

  • Zivar Bijani
Registered author(s):

    Abstract

    In the age of knowledge-based economy, an organization uses two distinguished resources for value creation and profit making: material or tangible resources and intellectual or invisible resources. In fact, it is claimed that intellectual capital can explain better the material and physical capital and a company’s performance financial indices. Intellectual capital provides a new complete model for observing organizations’ real value and by using it; a company’s future value can be calculated. The objective of the present study is to investigate the influence of intellectual capital on financial performance of the listed companies in Tehran Stock Exchange. In order to assess the intellectual capital, the value added intellectual capital coefficient developed by Palyk was used, which is one of the most important and valuable methods of assessing intellectual capital. In the present study, the influence of intellectual capital indices (efficiency of human, structural and physical capitals) on financial performance (earnings per share and the efficiency of assets) for 70 companies during the years 2004 to 2007 was investigated using the panel data regression. Be reviewing the literature, four hypotheses were proposed. The results obtained from testing the hypotheses showed that intellectual capital has positive and significant influence on earnings per share and the efficiency of assets. The results of regression models show that intellectual capital has positive and significant influence on earnings per share and the efficiency of assets. Structural capital like other components of intellectual capital also has significant and positive on the efficiency of assets. The results also indicate that the negative influence of structural capital on earnings per share, however, because this influence is not significant enough, it can be neglected. The results of the approach of panel data are indicative of the significant influence of physical capital on earnings per share and the efficacy of assets. Therefore, increase in physical capital results in improving the financial performance of the studies companies.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://hrmars.com/hrmars_papers/Article_13_The_Impact_of_Intellectual_Capital.pdf
    Download Restriction: no

    File URL: http://hrmars.com/hrmars_papers/Article_13_The_Impact_of_Intellectual_Capital.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences in its journal International Journal of Academic Research in Accounting, Finance and Management Sciences.

    Volume (Year): 4 (2014)
    Issue (Month): 1 (January)
    Pages: 119-127

    as in new window
    Handle: RePEc:hur:ijaraf:v:4:y:2014:i:1:p:119-127

    Contact details of provider:
    Web page: http://hrmars.com/index.php/pages/detail/Accounting-Finance-Journal

    Related research

    Keywords: Intellectual capital; human intelligence; structural capital; financial performance;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:hur:ijaraf:v:4:y:2014:i:1:p:119-127. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hassan Danial Aslam).

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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