---

The impact of intellectual capital on financial performance: An empirical investigation of Indian technology industry

---

Original Article

Author Details : Raman Deep Singh*

Volume : 11, Issue : 2, Year : 2024

Article Page : 123-130

https://doi.org/10.18231/j.jmra.2024.021

Suggest article by email

Get Permission

---

Abstract

This paper examined the association of intellectual capital and physical capital with financial performance (productivity and profitability) and market valuation (MB) in technology sector of India. IC efficiency of the companies was measured through Value added intellectual coefficient (VAIC) methodology. To examine the relationship of intellectual capital with financial performance and market valuation, the panel regression models have been employed in the study. The results evinced that value added intellectual capital coefficient (VAIN) has no relationship financial performance measures (ATO and ROA) and market valuation (MB) respectively. The results also found that physical and financial capital (VACA) has a significant influence on productivity and profitability of the organization. It is divulged that Indian technology-intensive firms still depend on tangible assets for organizational efficiency. This study is an eye opener for policy makers, government officials and other stakeholders to analyze the factors for non-existence relationship of intellectual capital with financial performance and market valuation respectively.

Keywords: Technology Industry, Intellectual Capital, Productivity, Profitability, Market Valuation

How to cite : Singh R D, The impact of intellectual capital on financial performance: An empirical investigation of Indian technology industry. J Manag Res Anal 2024;11(2):123-130

This is an Open Access (OA) journal, and articles are distributed under the terms of the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 License, which allows others to remix, tweak, and build upon the work non-commercially, as long as appropriate credit is given and the new creations are licensed under the identical terms.