The Impact of Value-Added Intellectual Capital on Corporate Performance: Cross-Sector Evidence

Darya Dancaková and Jozef Glova ()
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Darya Dancaková: Department of Banking and Investment, Faculty of Economics, Technical University of Košice, 040 01 Košice, Slovakia
Jozef Glova: Department of Banking and Investment, Faculty of Economics, Technical University of Košice, 040 01 Košice, Slovakia

Risks, 2024, vol. 12, issue 10, 1-17

Abstract: This study explores the relationship between intellectual capital (IC) and the financial performance of 250 publicly traded companies in France, Germany, and Switzerland from 2009 to 2018, addressing the gaps in prior research regarding the differential impacts of IC components across countries and industries in Western and Central Europe. Using the Value-Added Intellectual Coefficient (VAIC™) approach, this study evaluates human capital efficiency (HCE), structural capital efficiency (SCE), and capital employed efficiency (CEE). Panel regression analyses at the country and industry levels were conducted to assess their effects on financial metrics, such as return on equity (ROE), return on assets (ROA), and asset turnover ratio (ATO). The findings reveal a significant positive association between SCE, CEE, and firm performance, with CEE showing the most substantial effect, while HCE had a relatively weaker impact. Additionally, the study uncovers a trade-off between the accumulation of patents and trademarks and short-term financial performance, raising new considerations for intellectual property management. This research contributes to the literature by providing a nuanced understanding of how IC components influence financial outcomes across different contexts and offers practical insights for firms aiming to optimize structural capital and capital-employed strategies for improved financial performance while acknowledging the limitations regarding the sample of publicly traded firms.

Keywords: VAIC TM; intellectual capital; intangible assets; panel data regression; firm performance; R&D; patents and trademarks (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2024
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