The Impact of Innovation Capital on Firm Values
According to the framework of knowledge economy, production and management of knowledge are key aspects of firm’s activity nowadays. Intellectual capital (IC) is the crucial factor for company survival in the market. Therefore it is vital to realize the way that this capital helps to create firm value. The purpose of this study is to test empirically one aspect of the relationship between intellectual capital components and business performance – the influence of intellectual capital structure on process of firm’s value added creation.
In order to analyze the process of intellectual capital transformation into the company value, the balanced panel data were collected. The sample consists of 64 British firms in 6 industries: retail and wholesale trade, machinery manufacture, chemicals manufacture, transport and telecommunications, oil extraction and producing. The panel includes five years: from 2005 to 2009. In order to obtain comprehensive data of chosen companies we used Amadeus Database (Bureau Van Dijk) as like as information from companies’ websites.
As far as there is no singular method of measuring value added by intellectual capital, we used five the most common methods: EVATM, MVATM, FGVTM, VAICTM, P/B ratio. We also used 14 variables as proxies for intellectual capital components.
The models are estimated with pooled cross-sectional OLS method.
Most strongly influence of the intellectual assets structure is reflected in VAIC and FGV. At the same time, EVA and P/B ratio have weak or not significant relationship with the structure of the intellectual assets portfolio.
It should also be noted that models with human capital proxy in the denominator show a significant positive dependency between a ratio of the intellectual capital components and value added.
Moreover consideration of the industry factor changes the results only slightly.
The present study advances our understanding of how to manage knowledge-related resources and contributes to effective investment management. The results confirm that structure of intellectual assets has quite stable linear effect on the value added created by the company. The effect is observed both in the short and long term period. Consequently, management should consider not only an accumulated volume of intellectual capital, but also the ratio between these components in order to increase company value.
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.
We develop a model of asset pricing and hedging for interconnected financial markets with frictions – transaction costs and portfolio constraints. The model is based on a control theory for random fields on a directed graph. Market dynamics are described by using von Neumann – Gale dynamical systems first considered in connection with the modelling of economic growth [13,24]. The main results are hedging criteria stated in terms of risk-acceptable portfolios and consistent price systems, extending the classical superreplication criteria formulated in terms of equivalent martingale measures.
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.
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.