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Management Science Letters

ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print)
Quarterly Publication
Volume 2 Issue 2 pp. 511-516 , 2002

The effects of intellectual capital on financial performance: A case study of petrochemical and pharmaceutical firms Pages 511-516 Right click to download the paper Download PDF

Authors: Naser Azad, Leyla Mohajeri

DOI: 10.5267/j.msl.2011.12.022

Keywords: Earning per share, EVA, Financial return, Intellectual capital, Return of assets

Abstract: There is no doubt that traditional accounting does not provide actual value of assets since they only measure tangible assets. Intellectual capital provides a new concept for measuring actual value of the assets and we can calculate future values of the firm. In this paper, we first calculate intellectual capital based on the ratio of market value/book value for three years period. Then we investigate the relationship between intellectual capital and growth rate of intellectual capital as well as financial performance of some publicly traded petrochemical and pharmaceutical firms. The results of our survey indicate that there is a positive relationship between intellectual capital and equity growth with EVA and return of assets. However, there is no meaningful relationship between intellectual assets with net earnings.

How to cite this paper
Azad, N & Mohajeri, L. (2002). The effects of intellectual capital on financial performance: A case study of petrochemical and pharmaceutical firms.Management Science Letters , 2(2), 511-516.

Refrences
Boekestein, B. )2009(. Acquisitions reveal the intellectual capital of pharmaceutical companies. Journal of intellectual capital, 10(3), 389-400.

Burgman, R., & Roos, G. )2007(. The importance of intellectual capital reporting: evidence and implications. Journal of Intellectual capital, 8(1), 7-51.

Cordazzo M. (2007). Intangibles and Italian IPO prospectuses: a disclosure analysis. Journal of Intellectual capital, 8(2), 288-305.

Choong, K.K. (2008). Intellectual capital: definitions, categorization and reporting models. Journal of intellectual capital, 10(1), 81-92.

Dumay, J., & Cuganesan, S. ( 2011). Making sense of intellectual capital complexity: measuring through narrative. Journal of Human Resource Costing & Accunting, 15(1), 24-49.

Delgado-verde, M., de castro, G.M., & Navas- Lopez, J. E.(2011). organizational knowledge assets and innovation capability Evidence from Spanish manufacturing firms. Journal of intellectual capital, 12(1), 5-19.

Huang, C.C. )2010(. Contingency factors influencing the availability of internal intellectual capital information. Journal of financial Reporting and Accounting, 8(1), 1-21.

Huggins, R. )2007(. Intellectual assets and public policy. Journal of Intellectual, 8(4), 708-720.

Isaac, R. G., & Herremans, I.M. (2009). Intellectual capital management :pathway to wealth creation. Journal of intellectual capital, 10(1), 81-92.

Lee, L.L. (2010). Visualising and measuring intellectual in capital markets :a research method. Journal of intellectual capital, 11(1), 4-22.

Martin, G. )2008(. Intellectual capital in high- teach firm: the case of Spain. Journal of Intellectual capital, 9(1), 25-36.

Mar?´a D?´ez, J., Ochoa, M.L., Begon?a Prieto, M., & Santidria´n , A. (2010). Intellectual capital value creation in Spanish firms. Journal of intellectual capital, 11(3), 348-367.

Soler, L.E.V. (2007). Evaluating the scope of IC in firms value. Journal of intellectual capital , 8(3), 470-493.

Tan, H.P., Plowman, D., & Hancock, P. (2007). Intellectual capital and ?nancial returns of companies. Journal of Intellectual Capital, 8(1), 76-95.

Ting, I.W.K., & Lean, H. H. (2009). Intellectual capital performance of financial institution in Malaysia. Journal of Intellectual capital , 10(4), 588-599.

Wang, J.C. (2008). Investigating market value and intellectual capital for S & P 500. Journal Intellectual Capital, 9(4), 516-563.
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Journal: Management Science Letters | Year: 2002 | Volume: 2 | Issue: 2 | Views: 3480 | Reviews: 0

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