A theoretical analysis of the value added intellectual coefficient (VAIC)

Marzo, Giuseppe

doi:10.1007/s10997-021-09565-x

Cited by 23 publications

(24 citation statements)

References 65 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The VAIC model has been used commonly in the literature, but this does not mean it is without criticism [78]. For instance, a study posits it is merely a measure of labour efficiency and capital investment, but not intellectual capital.…”

Section: The Value Added Intelectual Capital (Vaic) Modelmentioning

confidence: 99%

Intangibles, Intellectual Capital, and the Performance of Listed Non-Financial Services Firms in West Africa: A Cross-Country Analysis

Duho

2022

Merits

View full text Add to dashboard Cite

This study aims to examine the impact of intellectual capital and intangible value on the performance of listed non-financial firms in West Africa. The study used the Value Added Intellectual Coefficient (VAIC™) to measure intellectual capital performance (with components as ICE—Intellectual Capital Efficiency an additive measure of the next two metrics, HCE—Human Capital Efficiency, SCE—Structural Capital Efficiency and CEE—Capital Employed Efficiency), financial ratios to measure intangible value and return on assets to measure performance while controlling for firm-level and macroeconomic variables. Using the panel-corrected standard error regression on 59 firms operating from 2007 to 2018, the study found that VAIC, ICE, HCE and SCE measures of intellectual capital are the pièce de résistance that drive the performance of firms. It is found that the relationship is curvilinear taking the shape of an inverted U. CEE does not drive the performance of firms, and asset tangibility inhibits performance but the investment in intangible fixed assets has a positive insignificant effect on performance. Firm size has a positive impact while financial leverage has a negative impact on performance. Human development does not drive performance but foreign direct investment and economic development do. There are country-specific insights where in Ghana intellectual capital and intangible value have a very strong positive effect on performance, followed by a relatively high impact in Cote D’Ivoire while there is a weak effect in the Nigerian context. The study also explores the effect of other variables such as firm size, financial leverage, human development, foreign direct investment and economic development. The findings are useful for policy, accounting, finance, economic and human resource practitioners as well as, for the academic community.

show abstract

Section: The Value Added Intelectual Capital (Vaic) Modelmentioning

confidence: 99%

Intangibles, Intellectual Capital, and the Performance of Listed Non-Financial Services Firms in West Africa: A Cross-Country Analysis

Duho

2022

Merits

View full text Add to dashboard Cite

show abstract

“…In this article, IC is analysed using the Value Added Intelectual Coefficient (VAIC) methodology, which is designed to determine the contribution of human capital efficiency (HCE), structural capital efficiency (SCE) and capital employed efficiency (CEE) to value creation in the company (Pulić, 2004), i.e. the VAIC methodology concerns the efficiency of three types of capital (Marzo, 2021): human capital (HC), measured by the cost of employees; structural capital (SC), equal to the diference between the value added generated by the firm and human capital; and physical and financial capital employed (CE), i.e. the amount of fnancial capital available to the firm.…”

Section: Intellectual Capital Board Structure and Bank Performancementioning

confidence: 99%

“…The guiding principle of this model is to determine the contribution of all company resources (human, structural and physical) to value creation (VA), which is obtained as follows: VA = OP + EC + A (OP = Operating profit; EC = Employment cost; A = Amortisation). Therefore, the VAIC is the result of the sum of three efficiency ratios, all obtained through a combination of the value added (VA) with the three types of aforementioned capital (Marzo, 2021).…”

Section: Intellectual Capital Board Structure and Bank Performancementioning

confidence: 99%

Board Structure and Bank Performance: The Mediating Role of Intellectual Capital

Nikolić

Nielsen

Peković

2022

Naše Gospodarstvo/Our Economy

View full text Add to dashboard Cite

Intellectual capital in the knowledge era is a strategic advantage of board structure, which leads to the improvement of a company’s work and the achievement of its goals. The aim of this study is to develop a structural model that connects the corporate governance, intellectual capital and financial performance of the banking sector. Corporate governance is conceptualised by the board of directors as the main internal mechanism of corporate governance, which is measured by the size of the board of directors, the number of independent board members and the female board members. Intellectual capital represents a mediator in this model and its efficiency is calculated through the Value Added Intellectual Coefficient (VAIC) model, while the financial performance of banks is measured through return on assets (ROA) and return on equity (ROE). The results of the study conducted in 22 Serbian banks between 2015 to 2019 show that the size of the board of directors and the number of independent board members have a statistically significant impact on intelectual capital (IC), but there is no impact on total assets (ROA). The number of women in the board of directors does not have a statistically significant effect on either ROA or ROE. The findings also indicate that intellectual capital (HCE, SCE, CEE) has a significant mediating role in the relationship between board structure and bank performance. The results of this study will provide a significant contribution to further investment in intellectual capital as the strongest link in achieving positive effects on bank performance.

show abstract

“…This model is a monetary-based intellectual capital measurement tool that can assess intellectual capital efficiency across the broad spectrum of industries (Soewarno & Tjahjadi, 2020). It provides a more objective measurement of intellectual capital efficiency than traditional measures, like EBITDA, within a knowledge-based economy (Marzo, 2022). According to Pulic (1998), the VAIC model assists stakeholders in understanding to what extent a company's total intellectual capital can contribute to the creation of value for its stakeholders.…”

Section: Variables' Definition and Measurementsmentioning

confidence: 99%

Impact of Intellectual Capital on Profitability, Market Value, and Productivity of the Listed Banks: Evidence From Bangladesh

2022

ijafr

View full text Add to dashboard Cite

This study examined the impact of intellectual capital and its elements (e.g., human capital, structural capital, and capital employed) on the profitability, market value, and productivity of all 30 publicly traded banks listed on the Dhaka Stock Exchange in Bangladesh. The study used unbalanced panel data with 146 observations for the period 2016–2020. Data was collected from the annual reports and the websites of the corresponding banks, as well as from the website of the Dhaka Stock Exchange. Multiple panel data regression models were employed to test the hypotheses studied. Intellectual capital was measured by the value-added intellectual coefficient (VAIC). This study found that banks with higher intellectual capital generated higher profits but lowered productivity; however, intellectual capital did not contribute to enhancing market value. Regarding the impact of subcomponents of intellectual capital, the study revealed that the human capital of the banks being examined enhanced profits but lowered productivity, with no impact on market value. Surprisingly, banks with higher structural capital had lower profitability but no influence on their market value or productivity during the study period. While capital employed was not found to affect the profitability, market value, or productivity of the sample banks in Bangladesh. The findings of the study suggest that the listed banks in Bangladesh failed to exploit intellectual capital well enough to gain a competitive advantage.

show abstract

A theoretical analysis of the value added intellectual coefficient (VAIC)

Cited by 23 publications

References 65 publications

Intangibles, Intellectual Capital, and the Performance of Listed Non-Financial Services Firms in West Africa: A Cross-Country Analysis

Intangibles, Intellectual Capital, and the Performance of Listed Non-Financial Services Firms in West Africa: A Cross-Country Analysis

Board Structure and Bank Performance: The Mediating Role of Intellectual Capital

Impact of Intellectual Capital on Profitability, Market Value, and Productivity of the Listed Banks: Evidence From Bangladesh

Contact Info

Product

Resources

About