PurposeThe purpose of this paper is to examine the validity of the Ohlson model and to explore the influence of intellectual capital (IC) on corporate value (V) and value creation (VC) in order to develop a business valuation model served as the managerial criterion of IC.Design/methodology/approachHypotheses are based on current research on the Ohlson model and IC. Descriptive statistics are used to find the data patterns. Information content and incremental information provided by various capital sources are validated through multiple and stepwise regression.FindingsCorporate value is measured by both IC and financial capital (FC). The Ohlson model with FC reveals information that is significant in corporate value. Besides, FC and IC – mainly, innovation and human capital – contains a great deal of incremental information in terms of V and VC.Research limitations/implicationsIn addition to financial statement, IC must be taken into account when intending to do business valuation.Practical implicationsTo create higher corporate value, corporations must actively place a high premium on their IC and manage it well, particularly for innovation and human capital.Originality/valueThis paper focuses on the information technology industry in Taiwan. It, respectively, uses the share price and price and book value models to represent V and VC. It cites the more complete four aspects of IC, which are referred to as “other information”, to combine IC and the Ohlson model.

Purpose -The purpose of this paper is to explore the mediating effect of business strategy (BS) on intellectual capital (IC) and financial performance (FP). The impact of financial crisis is also a major topic of this research. Design/methodology/approach -This study applies BS as mediator to explore the relationships between IC, BS, and FP. Partial least squares is employed to test the reliability and validity of measurements and the significance of path coefficients, and therefore to examine the hypotheses. Findings -IC has significant impacts on BS and FP in all samples, as well as in those years before and after the financial crisis. BS has a partial significant mediating effect between IC and FP. BS has significant effects on FP in all samples and pre-financial crisis, but has not in post-financial crisis.Research limitations/implications -IC has significant impacts on BS and FP. Moreover, the relationships of IC, BS, and FP are different during pre-and post-financial crisis. The direct effect of IC on FP is confirmed and consistent, and the indirect effect of IC on FP by BS is dependent upon the environment status. Practical implications -Enterprises should pay attention to IC, BS, and the related changes in environment status. These help enterprises develop appropriate strategies, maintain competitive advantage, and upgrade FP. Originality/value -This study applies BS as mediator, and explores the relationships between IC, BS, and FP. The impact of financial crisis is also discussed. The results may serve as the criteria for strategic performance management.

Purpose – The purpose of this paper is to investigate the relationship among intellectual capital (IC), financial capital (FC), firm value (V), and value creation (VC) in different business cycles (BC) for the conduct of strategic management that will maintain stable values and further increase V. Design/methodology/approach – This research cites ICs as “other information” to combine ICs and the Ohlson model. Information provided by various capitals is validated by multiple regression analysis. Multi-group analysis is performed to test whether the coefficient is moderated by BC. Findings – Results indicate the significant information of ICs and FC, and the contingency perspective of BC. The value relevance of ICs is moderated by BC. Prosperity has more explanatory capacities, and recession ICs yield more incremental information. Research limitations/implications – VC is influenced by both ICs and FC. Besides, the macroeconomic situation should also be considered in strategic management and VC management. Practical implications – In addition to ICs and FC, the macroeconomic situation must be taken into account when conducting strategic management, valuation management, investment decision, or industrial policy. Social implications – Results indicate a contingency of BC, which can be a reference for enterprises to create higher V, for investors to make appropriate investment, as well as for governments to formulate sound industrial policies. Originality/value – This paper applies BC to explore the value relevance of ICs and FC, leverages two models to represent V and VC, and cites complete four aspects of IC as “other information” to combine ICs and Ohlson model.

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