چکیده:
This study analyses the relationship of intellectual capital with financial performance measures of Indian textilesector for a period of 10 years ranging from 2002 to 2012. For the study, corporate annual reports, especially the profit and loss accounts and balance sheets of the selected companies for the relevant years have been used from CMIE prowess database. Value Added Intellectual Coefficient (VAIC) method is applied for measuring the intellectual capital of the companies. For analyzing any existing relationship between variables, correlation and OLS regression is used in this study. It has been observed that intellectual capital in textile sector has significant positive relationship only with profitability of the companies. The empirical analysis found that physical capital (VACA) was the one which was seen to have major impact on the profitability of the firms over the period of study. Results indicate that Indian investors consider only financial disclosure of the companies regarding their investment decision. The study provides useful knowledge to the researchers and managers regarding intellectual capital disclosure and its relation with financial performance
خلاصه ماشینی:
Pal Narwal 1,2 Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, Haryana, India Received 10 September 2013, Accepted 7 December 2013 ABSTRACT: This study analyses the relationship of intellectual capital with financial performance measures of Indian textilesector for a period of 10 years ranging from 2002 to 2012.
Here in this paper intellectual capital is measured through VAIC method developed by Pulic and association of intellectual capital with financial performance indicators such as productivity, profitability and market valuation of the companies are assessed.
(2012) carried out a study on pharmaceutical industry of Iran to find association between intellectual capital (IC) components with the traditional measures of performance and found that company’s IC can explain profitability but not productivity and market valuation in Iran.
Razafindrambinina and Anggreni (2008) investigated the association between intellectual capital and corporate financial performance of Indonesian listed companies from 2003 to 2006 by using VAIC model.
Intellectual capital will be measured using Value Added Intellectual Coefficient (VAIC) method and its association with financial performance indicators, such as assets turnover, return on assets and market to book value of the companies will be assessed.
Firstly, the correlation analysis will be done to find out whether there is any correlation between financial performance measures (dependent variables) and VAIC (independent variable) and then OLS regression analysis will be run to determine the influence of intellectual capital on profitability, productivity and market valuation of firms.