Intellectual Capital and Corporate Performance of Technology-Intensive Companies: Malaysia Evidence
Year: 2008
Type: article
Abstract: This paper examines the association between Intellectual Capital (IC)and corporate performance of technology-intensive companies(MESDAQ) listed on Bursa Malaysia by investigating whether valuecreation efficiency, as measured by Value Added Intellectual Capital(VAICTM), can be explained by market valuation, profitability, andproductivity. Correlation and regression models were used toexamine the relationship between corporate value creation efficiencyand firms’ market valuation, profitability and productivity. Thefindings from this study show that technology-intensive companiesstill depend very much on physical capital efficiency. The study alsosuggests that individually, each component of the VAIC commandsdifferent values compared to the aggregate measure, which impliesthat investors place different value on the three VAIC components.The results also indicate that physical capital efficiency is the mostsignificant variable related to profitability while human capitalefficiency is of great importance in enhancing the productivity of thecompany. This study concludes that VAIC can explain profitabilityand productivity but fails to explain market valuation.Keywords: Intellectual Capital; Market Valuation; Productivity;Profitability; Value Added Intellectual CoefficientJEL classification: G14, M41, O34
Authors: Kin Gan, Zakiah Saleh
Institutions: Universiti Teknologi MARA, University of Malaya
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W2171683415