The Role of Intellectual Capital as a Determinant of Firm Value

Rumeysa Bilgin ()
Additional contact information
Rumeysa Bilgin: Istanbul Sabahattin Zaim University

A chapter in The Dynamics of Intellectual Capital in Current Era, 2021, pp 63-83 from Springer

Abstract: Abstract The twofold purpose of this chapter is to provide a detailed literature review on the relationship between intellectual capital and firm value and to present an empirical study of this relationship in developing countries. The originality of this study lies in the use of the multilevel modeling method to analyze a large cross-country data set of 12,331 firms from 26 countries. The efficiency of intellectual capital is measured with value-added intellectual coefficient. Market value, earnings quality, return on asset, and return on equity are employed as proxies of firm value and performance. Variance coefficient and random intercept models are estimated. The findings imply that the efficient management of intellectual capital increases the profitability of sample firms. However, no significant relationship is detected between intellectual capital and market value. These results indicate that intellectual capital increases firm profitability in developing countries. However, investors in these countries do not count intellectual capital in their valuation processes. Managers can increase their firms’ profitability by efficient management of intellectual capital in developing countries.

Keywords: Intellectual capital; Firm value; Multilevel analysis; Panel data (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-16-1692-1_3

Ordering information: This item can be ordered from
http://www.springer.com/9789811616921

DOI: 10.1007/978-981-16-1692-1_3

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().