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 become the driving force and an important source of value creation and sustainable development of enterprises, but also innovation and the key to profit growth. Over the past decade China's economy maintained a sustained rapid growth, how much did the intellectual capital, which is the core of value creation, contributed to the economic development of our country? Is the development of China's listed companies mainly dependent on intellectual capital or physical capital? Face of the transformation of the global economy and the domestic market economy, has the driving force of value creation China's enterprises transferred from physical capital to intellectual capital is an hot issue of business and theorists at present. We selected three industries (manufacturing, information technology, industry and finance and insurance) to explore the relationship between Intellectual capital and company performance of our country, with the hope of providing something useful theoretically and practically for the rational allocation of economic resources and the effective development and use of intellectual capital in the period of transition economies. Research on intellectual capital home and abroad mainly focused on three areas: the concept of intellectual capital, the composition and measurement of intellectual capital, and the relationship between intellectual capital and business development. The concept of intellectual capital was first put forward by the Senior in 1836, but was only used as a synonym for human capital. American scholar Calbraith (1969) considered that intellectual capital is not only a static capital with the form of pure knowledge, but also a dynamic process of effective use of knowledge, and this process is related to the achievement of organizational goals. His research extended the concept of intellectual capital from individual level to organizational level. Brooking (1996) attributed intellectual capital to "all the general term for intangible assets...
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