Value Creation Through Intellectual Capital In Developed European Markets
Purpose – This paper investigates the production function of firms based on the use of intellectual capital. We come up with this problem since believe that the new economy conditions require an adjustment and a development of classical firm theory.
Design/methodology/approach – The research question addressed in this study is mainly related to the empirical validation of the function based on companies’ intangibles in the Cobb-Douglas framework. This model enables us to advocate the idea of the complementarity of intellectual resources as well as simplifies the analysis of intellectual capital features. To accomplish the purpose of our research we design a log-linear model and estimate it on a sample of more than 400 European and American companies.
Findings – Application of Cobb-Douglas framework allowed designing a production function based on intellectual capital. The complementarity of intellectual capital components is justified on the empirical results obtained in this research. The increasing return to scale for intellectual capital was established for the sample examined in this study.
Research limitations/implications – The main shortcoming of the approach implemented in this study is related to the proxy indicators of intellectual capital. Nevertheless, we statistically validate the chosen indicators applying hedonic approach.
Practical implications – Practical accomplishment of this research is mainly associated with the conclusion about an increasing return to scale of intellectual capital. This phenomenon appears to be of a particular importance for investment decisions.
Originality/value – The findings of this paper provide a new insight into intellectual resources interrelation that enhances companies’ value creation. We also hope to assist future research attempts in application of the theory of company’s growth driven by its intangible capital.
Current article is dedicated to the relationship between effectiveness of usage of intellectual capital and capital structure of firms in Russia in 2005-2007. Current research showed that effectiveness of usage of intellectual capital of firms has a positive influence over the level of financial leverage. The result of the research has showed that the more effective usage of intellectual capital makes a company more attractive for the credit organizations and opens more sources to obtain financing. There were also revealed some specific features of relationship between the effectiveness of utilization of intellectual capital and corporate financial decisions in Russia. The result is consistent with the results from the similar researches from the developed markets.
The purpose of this research is to develop cost-effectiveness tools for the analysis of company’s intellectual resources, in terms of resource-based and value-based approaches. Our study focuses on the evaluation of intellectual capital methods to discover the drivers of company growth. We suppose that the potential effectiveness of intellectual capital resources varies according to different institutional factors. Several statistical methods will be used for the empirical issues in this research, including common cross-sectional and panel data analysis, and the instrumental variables method. The database collected for this purpose will consist of financial and economic indicators underlying the intellectual capital evaluation, such as strategic performance indicators (EVA© and FGV©).The dataset includes companies from different countries and industries according to the Knowledge Economy Index of the World Bank. The industries presented in the dataset are selected according to the predominance of several intellectual capital elements. The database includes financial services, wholesale and retail trade, machinery and equipment manufacture, the chemical industry, and transport and communications. As a result of the empirical research, we expect to answer the following questions:Is there a close relationship betweenintellectual capital quality and company performance? What are the external and internalfactors affecting this relationship? (country, industry, company size, market dynamics, etc.)
These proceedings represent the work of researchers participating in the 11th International Conference on Intellectual Capital, Knowledge Management & Organisational Learning – ICICKM 2014, which this year is being held at The University of Sydney Business School, The University of Sydney, Australia. The Conference Co‐Chairs are Dr John Dumay from Macquarie University, Sydney, Australia and Dr Gary Oliver from the University of Sydney, Australia. The conference will be opened with a keynote by Göran Roos, Advanced Manufacturing Council, Adelaide, Australia who will address the topic of “Intellectual capital in Australia: Economic development in a high cost economy”. The second day will be opened with a from James Guthrie, University of Sydney, Australia on the topic of “Intellectual Capital and the Public Sector Research: Past, Present, and Future”. The ICICKM Conference constitutes a valuable platform for individuals to present their research findings, display their work in progress and discuss conceptual advances in many different branches of intellectual capital, knowledge management and organisational learning. At the same time, it provides an important opportunity for members of the IC, KM and OL communities to come together with peers, share knowledge and exchange ideas. ICICKM has evolved and developed over the last decade, and the range of papers accepted in this year’s conference ensures an interesting two‐day event. Following an initial submission of 144 abstracts that have undergone a double blind peer review process, 53 Research papers, 13 PhD Research papers, 1 Master’s Research paper, 1 Work‐in‐Progress papers are published in the ICICKM 2014 Conference Proceedings, representing work from Australia, Canada, China, Colombia, Czech Republic, Denmark, Estonia, Finland, France, Iran, Italy, Japan, Malaysia, New Zealand, Nigeria, Poland, Romania, Russia, Saudi Arabia, Singapore, Slovakia, South Africa, South Korea, Sweden, Taiwan, UK and USA. We hope that you have an enjoyable conference.
Papers have been double-blind peer reviewed before final submission to the conference. Initially, paper abstracts were read and selected by the conference panel for submission as possible papers for the conference. Many thanks to the reviewers who helped ensure the quality of the full papers. These Conference Proceedings have been submitted to Thomson ISI for indexing.
Defining the strategic vision of the company, managers and owners almost always have a shortage of information about different investments potential effectiveness. At the first step the company should find a compromise between investments in traditional assets and intellectual capital accumulation. RAVE concept is mainly based on the premise that the intellectual capital outcomes, including its knowledge, the company marketing policy, purchasing and staff development, exceed the traditional assets outcomes. This article represents the critical analysis of the approach designed by BCG consultants and is devoted to the integrated economic value added - method development.
One of the basic factors of economic growth in the information knowledge - based economy is the innovation component determined by the level of intellectual capital usage. Of the specifics in the usage of intellectual capital is that the cost evaluation of intellectual resources on the macro-level as a factor of economic growth is extremely difficult and there are more evaluation possibilities on the micro-level. The risk's estimation based on making use of discount theory.
Value-based management concept regards corporate value growth for all stakeholders as the main company purpose which nowadays is primarily provided by intangible assets. However analysis of the process of converting intellectual capital (IC) and its components into the company financial performance is still a challenging research area. The main aim of the current study is to investigate the intellectual capital transformation into the company value on the basis of available information.
Smoking is a problem, bringing signifi cant social and economic costs to Russiansociety. However, ratifi cation of the World health organization Framework conventionon tobacco control makes it possible to improve Russian legislation accordingto the international standards. So, I describe some measures that should be taken bythe Russian authorities in the nearest future, and I examine their effi ciency. By studyingthe international evidence I analyze the impact of the smoke-free areas, advertisementand sponsorship bans, tax increases, etc. on the prevalence of smoking, cigaretteconsumption and some other indicators. I also investigate the obstacles confrontingthe Russian authorities when they introduce new policy measures and the public attitudetowards these measures. I conclude that there is a number of easy-to-implementanti-smoking activities that need no fi nancial resources but only a political will.
One of the most important indicators of company's success is the increase of its value. The article investigates traditional methods of company's value assessment and the evidence that the application of these methods is incorrect in the new stage of economy. So it is necessary to create a new method of valuation based on the new main sources of company's success that is its intellectual capital.