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INTELLECTUAL CAPITAL AND FIRM PERFORMANCE: APPLYING MODIFIED VALUE ADDED COEFFICIENT
Last modified: 2017-12-29
Abstract
Knowledge-based industries based their business processes on intellectual capital. This study examines the influence of intellectual capital on financial performance and market performance of the company in knowledge-based industry.. The study was conducted in Southeast Asian countries. Intellectual capital is measured using Modified Value Added Intellectual Coefficient (MVAIC). This study used a one-year time lag for MVAIC measurements and performance. Samples were 242 companies. The tests were performed using multiple regression, tested MVAIC and MVAIC component consisting of Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE), Relational Capital Efficiency (RCE) and Capital Employed Efficiency (CEE). The result of research is intellectual capital (MVAIC) have positive effect to financial performance and market performance. While the components of MVAIC, have different effects, such as HCE have a positive effect on financial performance and market performance. This proves that human capital plays an important role in the company in knowledge based industry. SCE has no effect on financial performance and market performance. RCE has no effect on financial performance and market performance. CEE has a positive effect on financial performance and has no effect on market performance.
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