EIC: A New Tool for Intellectual Capital Performance Measurement

Krstić, Bojan; Bonić, Ljiljana

doi:10.18267/j.pep.586

Cited by 20 publications

(23 citation statements)

References 22 publications

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“…Different models are developed for measuring IC [6,42,43]. These methods are listed as follows: (1) Tobin' Q, (2) Economic value added (EVA) and market value added (MVA), (3) Skandia Navigator [44], (4) Intangible Assets Monitor [45], (5) Balanced Scorecard [46], (6) Value Added Intellectual Coefficient (VAIC TM ) [47,48], and (7) Technology broker [49].…”

Section: Ic Definitionmentioning

confidence: 99%

Intellectual Capital Performance of the Textile Industry in Emerging Markets: A Comparison with China and South Korea

Wang

2019

Sustainability

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In this study, the Value Added Intellectual Capital (VAICTM) and Modified Value Added Intellectual Capital (MVAICTM) models are utilized to analyze intellectual capital (IC) performance of the textile industry in China and South Korea during 2012–2017, and measure the contribution of IC sub-components to companies’ performance. The results show that the aggregate IC positively affects earnings, profitability, and productivity of textile companies in China and South Korea. At the sub-components level, the contribution of capital employed efficiency (CEE) is the largest, followed by structural capital efficiency (SCE), and relational capital efficiency (RCE) in China’s textile industry. In addition, Korea’s textile industry relies heavily on CEE and human capital efficiency (HCE), while the contribution of RCE is relatively small. Finally, relevant policies are put forward to promote the sustainable development of the textile industry in these two emerging markets.

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Section: Ic Definitionmentioning

confidence: 99%

Intellectual Capital Performance of the Textile Industry in Emerging Markets: A Comparison with China and South Korea

Wang

2019

Sustainability

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“…Although not explicitly presented in the financial-accounting reports, the intellectual capital exists and influences the value of a company. This is recognized as the "excess" of the established market value over the company's accounting value (Sharabati, Naji Jawad and Bontis, 2010;Krstić and Bonić, 2016).…”

Section: Review Of the Scientific Literaturementioning

confidence: 99%

Intellectual Capital and Financial Performance of Biotech Companies in the Pharmaceutical Industry

Anghel¹,

Siminică²,

Cristea³

et al. 2018

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The paper's aim is to analyse the interdependency between the intellectual capital and the financial performance of biotechnological (biotech) companies in the pharmaceutical industry. The analysis was performed for 24 biotech companies in this branch considered during 2002-2014, based on several indicators available on the Thomson Reuters database. The financial performance was measured through the return on assets (ROA), return on equity (ROE) and the debt-to-equity ratio (DE). In order to capture the intellectual capital, the focus was on a designing a new indicator, proposed by the authors, respectively the efficiency of research and development expenditures (ECD), along with another proxy, previously attested by the literature and reflected through the market to-book ratio (MTB). The research methodology resides on applying the correlation method, robust regression, and structural equations modelling (SEM). The results reveal a significant negative relationship between ROA, ROE and MTB, which contradicts the literature and suggests that, for this particular type of companies, MTB isn't relevant to express the intellectual capital. MTB was positively correlated with DE. When we used the ECD, the results attested a strongly positive and significant relation with ROA and ROE, and a negative one with DE. Therefore, the applied tests confirm ECD as the most suitable indicator to appreciate the intellectual capital for the biotech companies in the pharmaceutical industry.

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“…In the group of ROA methods an interesting methodological framework is developed by Krstić and Bonić (2016) for measuring the efficiency of the total intellectual capital of an enterprise (EIC) by calculating the partial efficiency measures of the intellectual capital components. EIC method combines the financial accounting valuation with the market valuation by determining the value of the intellectual capital from two parts: the intellectual capital disclosed on the balance sheet of a firm and the undisclosed intellectual capital (Krstić & Bonić, 2016).…”

Section: Return On Assets Methodsmentioning

confidence: 99%

“…EIC method combines the financial accounting valuation with the market valuation by determining the value of the intellectual capital from two parts: the intellectual capital disclosed on the balance sheet of a firm and the undisclosed intellectual capital (Krstić & Bonić, 2016). This method is easy to apply especially to the companies listed on the stock exchanges since it is based on the publicly available information, but experience limitations with the companies that are not listed on the market and requires other solutions for the calculation of the market value.…”

Section: Return On Assets Methodsmentioning

confidence: 99%