Research on the Relationship Between Intellectual Capital and Company Performance

Research on the Relationship between Intellectual Capital and Company Performance
——An Empirical Analysis Based on Panel Data

FAN Libo YUAN Xin WANG Su
School of Business, University of International Business and Economics, P.R.China, 100029

Abstract: It is well known that knowledge economy is mainly based on intellectual capital. Intellectual capital plays a key role in enterprise’s value promotion. In fact, the good intellectual capital control system can bring the positive influence to the enterprise achievements. It is important to make empirical research on the relationship between intellectual capital and company performance to create value and enhance the enterprise achievements.
In the paper, we take the relation analysis between intellectual capital and enterprise performance as the main topic of our research. Based on the overseas and domestic scholars’ research, the paper selected companies listed in Shanghai and Shenzhen exchanges in intellectual capital-intensive manufacturing industry, information technology industry as well as banking and insurance industry as research samples in the period of 2007 to 2009, using Value Added Intellectual Coefficient (VAIC) as the evaluation system. The paper constructed three empirical research model based on economic performance, financial performance and stock market performance. We hope to know the status of intellectual capital development in China especially in three industries and try to find out the relationship between intellectual capital and company performance. Finally, based on the empirical study results, we try to provide constructive suggestions for intellectual capital development. And also the paper pointed out the limitations of the research and provided some help for the follow-up study.
Keywords: Intellectual Capital, Company Performance, Value Added Intellectual Coefficient (VAIC)

1 Introduction and Literature Review

In the knowledge economy, intellectual capital not only has

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