The Effects of Intellectual Capital on Financial Performance and Market Value: Evidence from Turkey
Journal Title: Eurasian Journal of Business and Economics - Year 2018, Vol 11, Issue 21
Abstract
In this study we aim to examine the effects of intellectual capital and its components on companies’ market value and financial performance in Turkey. The financial and market data of production companies listed in Borsa Istanbul 100 index (BIST-100) for the periods 2011 through 2014 are used as dataset. We selected three different measures for financial performance; ROA, ROE and Net Profit Margin, and one measure for market value; Market to Book Ratio. As independent variables, we firstly took Modified Value Added Coefficient (M-VAIC), secondly we took three components of M-VAIC. Besides, we added natural logarithm of assets to control for variation in asset size of companies and tested its significance. The results suggest multi factor models are more powerful than single factor model in explaining the market performance and financial performance. The paper also reveals that models explaining financial performance provide more accurate results than the models of market performance. The analysis also exposes that physical capital and human capital has a significant effect on financial performance whereas physical capital and relational capital has an influence on market performance.
Authors and Affiliations
Ilker YILMAZ, Goksel ACAR
Keywords
Related Articles
- EP ID EP600935
- DOI 10.17015/ejbe.2018.021.07
- Views 85
- Downloads 0
Cost and Management Accounting Practices: A Survey of Manufacturing Companies
The purpose of this study is to explore cost and management accounting practices utilized by manufacturing companies operating in Istanbul, Turkey. The sample of the study consists of 61 companies, containing both small...
Changes In Company’s Management Accounting Systems: Case Study on ActivityBased Costing Implementation and Operation in Medium-Sized Production Company
This paper aims to explore factors, which influence the process of activity-based costing (ABC) implementation, as well as analyze and explain the changes in the area of methodology and organization of a company, after...
Network Building Behaviors of U.S. and Central Asian Leaders: Role of Institutional Background and Individual Factors
This paper undertakes a comparative examination of contextual and individual-level antecedents to network building behaviors of leaders. Taking insights from social network and motivation theories, the proposed model sug...
Mergers, Acquisitions and Firms’ Performance: Experience of Indian Pharmaceutical Industry
In the context of policy reforms in the 1990s in general and three important amendments made to the Indian Patent Act (1970) in 1999, 2002 and 2005 in particular, the present paper makes an attempt to examine the impact...
Bookkeeping in Manor Farms of Polish Gentry in 17th Century
The work concerns the bookkeeping solutions used in Polish farms in the 17th century. On the basis of the source texts analysis three approaches to bookkeeping can be distinguished. Bookkeeping was considered to be: • an...