 |
[email protected] |
 |
3275638434 |
 |
 |
| Paper Publishing WeChat |
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Impacts of Intellectual Capital on Profitability: An Analysis on Sector Variations in Hong Kong
Michael C. S. Wong, Stephen C. Y. Li, Anthony C. T. Ku
Full-Text PDF
XML 4680 Views
DOI:10.17265/1548-6591/2015.08.003
City University of Hong Kong, Hong Kong, China
|
With the data from blue-chip companies listed in Hong Kong, this research finds that the three components of intellectual capital, including Capital Employed Efficiency, Human Capital Efficiency, and Structural Capital Efficiency, have strong impact on profitability. However, their impacts are not equally-weighted and are not consistent in different sectors. The impact of Capital Employed efficiency is universal. However, Human Capital Efficiency appears to be more important for companies in finance sector. Structural Capital Efficiency demonstrates a very pronounced impact on companies in property sector. The results suggest that Pulic may have over simplified impacts of intellectual capital. Also, previous studies may have ignored sector variation in the impacts of intellectual capital. Future research is suggested to widen the research scope. The recommended future research areas are to study the ways to improve the management of intellectual capital; to study other factors that mostly affect the intellectual capital; and to study how the knowledge-based organizations benefited from the development of intellectual capital. |
intellectual capital, profitability, knowledge-based economy, Hong Kong Stock Exchange Listed Companies
Journal of US-China Public Administration, August 2015, Vol. 12, No. 8, 614-626
Ahangar, R. G. (2011). The relationship between intellectual capital and financial performance: An empirical investigation in an Iranian company. African Journal of Business Management, 5(1), 88-95.
Bornemann, M., Knapp, A., Schneider, U., & Sixl, K. I. (1999). Holistic measurement of intellectual capital. Proceedings from International Symposium: Measuring and Reporting Intellectual Capital: Experiences, Issues and Prospects. Retrieved from http://www.oecd.org/dataoecd/16/20/1947871.pdf
Chen, M. C., Cheng, S. J., & Hwang, Y. C. (2005). An empirical investigation of the relationship between intellectual capital and firms’ market value and financial performance. Journal of Intellectual Capital, 6(2), 159-176.
Edvinsson, L., & Malone, M. S. (1997). Intellectual capital: Realizing your company’s true value by finding its hidden brainpower. New York, NY: Harper Business.
Elliott, B., & Elliott, J. (2012). Financial accounting and reporting (15th ed., pp. 512-514). England: Financial Times Prentice Hall, Pearson Education Limited.
Fathi, S., Farahmand, S., & Khorasani, M. (2013). Impact of intellectual capital on financial performance. International Journal of Academic Research in Economics and Management Sciences, 2(1). Retrieves from http://www.hrmars.com/admin/ pics/1420.pdf
Guthrie, J. (2000). The management, measurement and the reporting of intellectual capital. Journal of Intellectual Capital, 2(1), 27-41.
Guthrie, J., & Petty, R. (1999). Knowledge management. Company Secretary, 9(1), 38-41.
Johnson, H. T., & Kaplan, R. S. (1987). Relevance lost: The rise and fall of management accounting. Boston: Harvard Business School Press.
Klein, D. A., & Prusak, L. (1994). Characterising intellectual capital. Cambridge, MA: Centre for Business Innovation, Ernst and Young.
Kok, A. (2007). Intellectual capital management as part of knowledge initiatives at institutions of higher learning. The Electronic Journal of Knowledge Management, 5(2), 181-192. Retrieved from http://www.jps-dir.com/forum/uploads/13352/Kok.pdf
Leibowitz, J., & Wright, K. (1999). Does measuring knowledge make “cents”? Expert System With Applications, 17(1), 99-103.
Maditions, D., Chatzoudes, D., Taairidis, C., & Theriou, G. (2011). The impact of intellectual capital on firms’ market value and financial performance. MIBES Transactions, 5(1). Retrieved from http://www.bs.teilar.gr/mtol/images/files/volume_5/ maditinos-chatzoudes-tsairidis-theriou.pdf
Makki, M., Lodhi, S. A., & Rahman, R. (2008). Intellectual capital performance of Pakistani listed corporate sector. International Journal of Business and Management, 3(10), 45-51.
Marr, B., Schiuma, G., & Neely, A. (2002). Assessing strategic knowledge assets in e-business. Int. J. Business Performance Management, 4(2-4), 279-295. Retrieved from https://www.som.cranfield.ac.uk/som/dinamic-content/research/cbp/ 2002,%20Assessing%20Strategic%20Knowledge%20Assets%20in%20e-business%20%28IJBPM,%20Marr_Schiuma_Neely%29.pdf
Pulic, A. (1998). Measuring the performance of intellectual potential in the knowledge economy. Retrieved from https://www.easuring-ip.at
Pulic, A. (2000a). VAIC—An accounting tool for IC management. International Journal of Technology Management, 20(5-7), 702-714.
Pulic, A. (2000b). MVA and VAIC analysis of randomly selected companies from FTSE 250. Retrieved from http://www.vaic-on.net/download/ftse30.pdf
Seetharman, A., Sooria, H., & Saravanan. (2002). Intellectual capital accounting and reporting in knowledge economy. Journal of Intellectual Capital, 3(2), 128-148.
Starovic, D., & Marr, B. (2003). Understanding corporate value: managing and reporting intellectual capital. Retrieved from http://www.cimaglobal.com/Documents/ImportedDocuments/tech_techrep_understanding_corporate_value_2003.pdf
Sullivan, P. H. Jr., & Sullivan, P. H. Sr. (2000). Valuing intangibles companies: An intellectual capital approach. Journal of Intellectual Capital, 1(4), 328-340.
Sveiby, K. E. (2010). Methods for measuring intangible assets. Retrieved from http://www.sveiby.com/articles/ IntangibleMethods.htm
The Management Lab. (2013). Intellectual capital. Retrieved from http://www.managementlab.org/files/u2/ pdf/classic%20innovations/Intellectual_Capital.pdf
Veltri, S. (2009). The impact of intellectual capital measurement on the financial markets: A meta-analysis approach. Electronic Journal of Corporate Finance, 3(11), 54-76.