Intellectual capital – does it create or destroy value?

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/ authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.Abstract Taking into account the transformation in economic reality towards a knowledge economy it seems logical that we treat IC as a resource, equal to that land, physical assets, and ®nancial capital. This means that it is not anymore treated as a cost but as an investment. In order for the new system to be consistent we have to de®ne a new index, namely the value creation ef®ciency of intellectual capital. Its empirical applications shows that while revenue, pro®t and GDP may indicate successful performance, IC ef®ciency may indicate the opposite, that value is being destroyed and not created.

Does Intellectual Capital Affect the Volatility of Returns? An Empirical Investigation on Italian Listed Companies

“…Other methods to value intellectual capital include Economic Value Added (EVA) and the Balanced Score Card (BSC). Pulic (2004) argues that EVA focus on the efficiency of just one resource, capital employed and therefore this method can not be a valid measuring system for the new economy. The descriptive nature of the BSC and the lack of comparability in the non-monetary indicators that is favors, make BSC an in adequate valuation method for intellectual capital (Daum, 2002).…”

“…In fact, in the IC field it is commonly understood that traditional financial measurement systems are inadequate for today's businesses (Pulic 2004). However, a review of the literature on intellectual capital shows that measuring intellectual capital is difficult and challenging.…”

EIC: A New Tool for Intellectual Capital Performance Measurement

“…Drawing on the earlier research (Pulic, 2000;M'Pherson and Pike, 2001;Pulic, 2004;Andriessen, 2004) and, in particular, the critical analyses of the findings put forward by those studies, the EIC methodological framework indicates the elements needed for the calculation. In addition to this, we want to point out that human resources are the most important factor of the business success of an enterprise in the knowledge economy era.…”

Intellectual Capital (IC) Determinants: Impact on Productivity of Islamic Banks

“…The VAIC model adopted in this research is elaborated from the original work of Pulic (2004) and modified or extended version by Kehelwalatenna (2016), Nimtrakoon (2015), Ulum et al (2014), and Vishnu and Vijay (2014). There are (1) Figure 1 represents the schematic diagram of the construction of VAIC.…”