How Intellectual Capital Affects Market Value and Firm Performance

This is a postgraduate dissertation that attempts to understand and examine the role of intellectual capital in determining company market value and financial performance by taking a sample of UK firms listed on the London Stock Exchange. The study uses Pulic s (1998, 2000, 2002, 2004) framework of Value Added Intellectual Coefficient (VAIC) to measure intellectual capital components. The empirical results suggest that greater intellectual capital efficiency leads to better financial performance.Human capital is identified as the most significant intellectual capital contributor in a firm. In addition, the dissertation compares the findings with Zeghal and Maaloul s (2010) sample on 2005 data, and obtaines evidence that UK firms generated less value through intellectual capital components in the recession affected year 2009 than on the years before the crisis.

Autorentext

Sheehan Rahman is a Doctoral Researcher and seminar instructor of Management Accounting in Manchester University, UK. He completed MSc with a Distinction securing top place from Birmingham University, UK, and was a Gold Medalist in his first degree from North South University, Bangladesh, where he also taught Accounting and Finance courses.