Estimating Intellectual Capital and its Impact on Firms' Performance : Use of A-VAIC and M-VAIC Models

Authors

  •   Kanishka Gupta Assistant Professor, Symbiosis Centre for Management Studies, Noida, Symbiosis International (Deemed University), Plot No. 47 & 48, Block A, Sector 62, Noida - 201 301, Uttar Pradesh
  •   Dolly Gaur Assistant Professor, Symbiosis Centre for Management Studies, Noida, Symbiosis International (Deemed University), Plot No. 47 & 48, Block A, Sector 62, Noida - 201 301, Uttar Pradesh
  •   Prakash Bhatia Assistant Professor, Anil Surendra Modi School of Commerce, NMIMS, 7th Floor, V.L. Mehta Road, Vile-Parle (West), Mumbai - 400 056, Maharashtra

DOI:

https://doi.org/10.17010/ijf/2023/v17i1/172600

Keywords:

Intellectual Capital

, M-VAIC, A-VAIC, Financial Performance, Market Performance, India.

JELClassification Codes

, C4, G32, M41, L1

Paper Submission Date

, July 30, 2021, Paper sent back for Revision, July 11, 2022, Paper Acceptance Date, October 10, Paper Published Online, January 15, 2023

Abstract

The study examined the contribution of intellectual capital to companies' overall performance. Also, a comparison between the effectiveness of the adjusted value-added intellectual coefficient (A-VAIC) and the modified value-added intellectual coefficient (M-VAIC) model for estimating IC components and analyzing their impact on firms' performance was attempted. The study was carried out for 405 Indian companies listed on the NSE-500 index for 10 years (20102011 to 20192020). It was found in the results that intellectual capital is indeed helpful in improving firms financial and market performance. However, the M-VAIC is more detailed and precise. Hence, the IC components estimated using it can explain companies' performance more effectively than the A-VAIC.

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Published

2023-01-01

How to Cite

Gupta, K., Gaur, D., & Bhatia, P. (2023). Estimating Intellectual Capital and its Impact on Firms’ Performance : Use of A-VAIC and M-VAIC Models. Indian Journal of Finance, 17(1), 8–26. https://doi.org/10.17010/ijf/2023/v17i1/172600

Issue

Volume 17, issue 1, January 2023

Section

Articles
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Scopus
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Europe PMC

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