Intellectual Capital and Traditional Measures of Corporate Performance

Publication Type

Journal Article

Publication Date

2003

Abstract

The principal purpose of this study is to investigate the association between the efficiency of value added (VA) by the major components of a firm's resource base (physical capital, human capital and structural capital) and three traditional dimensions of corporate performance: profitability, productivity, and market valuation. Data are drawn from a sample of 75 publicly traded firms from South Africa from business sectors heavily reliant on intellectual capital. Empirical analysis is conducted using correlation and linear multiple regression analysis. Findings from the empirical analysis indicate that associations between the efficiency of VA by a firm's major resource bases and profitability, productivity and market valuation are generally limited and mixed. Overall, the empirical findings suggest that physical capital remains the most significant underlying resource of corporate performance in South Africa despite efforts to increase the nation's intellectual capital base. [PUBLICATION ABSTRACT]

Discipline

Accounting | Business Administration, Management, and Operations

Research Areas

Corporate Governance, Auditing and Risk Management

Publication

Journal of Intellectual Capital

Volume

4

Issue

3

First Page

348

Last Page

360

ISSN

1469-1930

Identifier

10.1108/14691930310487806

Publisher

Emerald

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