Impact of Intellectual Capital on Firm Performance in Indian It Companies
Journal of Contemporary Issues in Business and Government,
2021, Volume 27, Issue 2, Pages 4335-4340
AbstractThe relationship of intellectual capital and firm performance have shown mixed results that lead more attention among the research scholars in global. This study focus on the relationship between intellectual capital and financial performance of IT companies in India by using value-added intellectual capital coefficient (VAICTM) model. The researcher selected sample of 88 IT companies on the basis of market capitalization and compiled data of this company from audited annual reports during the period of 2009-2018. Accordingly, the multiple regression results show that both VAIC and components of VAIC (except CEE) significantly predicted the financial performance of Indian IT companies. Besides, structural capital efficiency was found strong significant predator of ROA (.299) and human capital efficiency for sales growth (.594). Thus, Indian IT companies advised to give more attention of investment in employees and management structure and policies to increase their financial performance.
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