Advances in Management and Applied Economics

Intellectual Capital Efficiency: Evidence from Bangladesh

  • Pdf Icon [ Download ]
  • Times downloaded: 12889
  • Abstract

    The study investigates associations, first, between a firmís intellectual capital and market value, and second, between a firmís intellectual capital and financial performance in the context of Bangladeshi companies selected from three different industries - banking, textiles, and pharmaceuticals. This was investigated through applying Ante Pulicís (1998) framework of Value Added Intellectual Coefficient (VAIC). Most of the previous analyses on intellectual capital focused only one industry, although Pulic informed that VAIC is a standardized measure that could be applied over a range of companies of different sizes, taken from different sectors and across different countries. Findings from this study should assist to determine if Bangladeshi firms appear to continue relying on traditional resources for wealth creation, or if they are shifting towards a greater reliance on intellectual capital factors of production in determining profitability and market valuation.