Measuring Intangible Assets

2011 ◽  
pp. 156-176
Author(s):  
Kimiz Dalkir ◽  
Susan McIntyre
Keyword(s):  
Research And Development ◽  
Intellectual Capital ◽  
Intangible Assets ◽  
Value Added ◽  
Assessment Methodology ◽  
Technology Program ◽  
Step Process ◽  
Counter Terrorism ◽  
Knowledge Based ◽  
Assessment Techniques

At present, there are no standards for assessing the value of intangible assets or intellectual capital. Historically, a number of frameworks have evolved, each with a different focus and a different assessment methodology. In order to assess that knowledge management initiatives contributed to the fight against terrorism in Canada, a results-based framework was selected, customized and applied to CRTI (a networked science and technology program to counter terrorism threats). This chapter describes the step by step process of how the results-based framework was applied to measure the value contributed by knowledge-based assets. A combination of qualitative, quantitative and anecdotal assessment techniques was used and a map was employed to visualize the evaluation results. The strengths and weaknesses of this particular approach are discussed and specific examples from CRTI are presented to illustrate how other organizations can use this method to assess the value-added to innovation and research and development using a results-based framework.

Intellectual capital and firm performance in emerging economies: the case of India

2016 ◽  
Vol 26 (3) ◽  
pp. 410-430 ◽  
Author(s):  
Santi Gopal Maji ◽  
Mitra Goswami
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Value Added ◽  
Relative Importance ◽  
Content Type ◽  
Knowledge Based ◽  
Traditional Sector ◽  
Steel Sector ◽  
Capital Efficiency ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of intellectual capital (IC) on Indian traditional sector and compare the relative importance of IC on corporate performance of Indian knowledge-based sector (engineering sector) and traditional sector (steel sector). Design/methodology/approach Secondary data on 100 listed Indian firms, comprising of 44 firms from the engineering sector and 56 from the steel sector, are collected from “Capitaline Plus” Corporate database for a period of 14 years from 1999-2000 to 2012-2013. IC and its components are computed using Pulic’s value-added intellectual coefficient model and firm performance is measured by return on asset. Fixed effect regression model is used to investigate the hypothetical relationship between IC and firm performance. Further, quantile regression is used to check the robustness of the results. Findings The results indicate that IC efficiency and physical capital efficiency are positively and significantly associated with the firm performance for both the sectors. Regarding the components of IC, the coefficient of human capital efficiency is positive and significant, but the present effort fails to disentangle any significant influence of structural capital efficiency on firm performance. However, the results indicate that the influence of IC efficiency on firm performance is significantly greater in case of knowledge-based sector than that of traditional sector. Practical implications The findings of the study are useful for the decision makers, as the results indicate that the IC plays crucial role in value creation not only for knowledge-based firms but also for the firms belonging to the traditional manufacturing sector. Originality/value In the Indian context, this is the first study to examine the relative importance of IC in a knowledge-based sector and a traditional sector using appropriate methodology.

scholarly journals Measurement of Intellectual Capital as Exemplified by Methods of Groups Based on the Roa Indicator and on Market Capitalization

e-Finanse ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 58-71
Author(s):  
Karolina Palimąka ◽  
Mateusz Mierzejewskl
Keyword(s):  
Intellectual Capital ◽  
Food Industry ◽  
Intangible Assets ◽  
Financial Statements ◽  
Point Of View ◽  
Market Capitalization ◽  
Knowledge Based ◽  
Theoretical Approaches ◽  
Knowledge Based Economy ◽  
Business Analysis

Abstract The concept of a knowledge-based economy is a relatively new topic, but it does not mean that the previous economies did not use knowledge. For many years, knowledge formed the basis of any economy, it was a factor that set the pace of each of them, but just nit is making a significant impact on the entrepreneurial environment, and more. Inherent KBE is the concept of intellectual capital. The article raises both theoretical approaches towards the concept of intellectual capital, and points to the importance (from the point of view of managing this intangible value in the company) -of measuring intellectual capital. The process of good management of the value of intangible assets must be supported by knowledge about, e. g.,its size, value, etc. The authors focus on presenting methods of measuring intellectual capital from two groups of methods by the classification made by K. E. Sveiby, who is considered one of the fathers of the IC concept. The goal of the article is to compare methods from these two groups in terms of their flaws and advantages as regards preparing business analysis. This is done through presentation of the topic, including the concept and methods of intellectual capital measurement, which was based on the review of the literature.Furthermore, based on financial statements of companies from the WIG- oil&gas index and WIG- food industry indexwaysof interpreting the final results are presented.

scholarly journals Peran intellectual capital terhadap market to book value dan return on assets dengan research and development sebagai pemoderasi

2020 ◽  
Vol 9 (2) ◽  
pp. 297
Author(s):  
Pandu Alvi Baskoro ◽  
Suratno Suratno ◽  
Syahril Djaddang
Keyword(s):  
Research And Development ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Value Added ◽  
Market Value ◽  
Physical Capital ◽  
Book Value ◽  
Structural Capital ◽  
Corporate Resources

This study aims to support the role of Research and Development on Intellectual Capital on market value (MtBV) and corporate financial performance (ROA).  Using the Pulic model - Intellectual Value Coefficient (VAIC), this study examines the relationship between value added (VAIC) of the three main corporate resources (ie Physical Capital, Human Capital and Structural Capital), the company's market value (MtBV) and corporate finance ( ROA), and also Research and Development (R&D).  The data is gathered from 43 selected banking companies listed on the Indonesia Stock Exchange in 2013-2017.  Data analysis uses multiple regression.  The results show that Intellectual Capital (VAIC) does not affect to market value (MtBV), but the compilation of Intellectual Capital (VAIC) developed by Research and Development (R&D) as full moderation can support market value.  Intellectual Capital (VAIC) affects financial performance (ROA), as well as Intellectual Capital (VAIC) supported by Research and Development (R & D) as a quasi-moderation which also strengthening the financial performance (ROA).Keyword : Intellectual Capital (IC), Market to Book Value (MtBV), Financial Performance (ROA), Research and Development (R&D).

Measuring and Valuing Knowledge-Based Intangible Assets

2011 ◽  
pp. 268-293 ◽  
Author(s):  
Steve Pike ◽  
Göran Roos
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Intangible Assets ◽  
Relationship Management ◽  
Future Research ◽  
Business Innovation ◽  
Practical Guide ◽  
Knowledge Based

This chapter offers a practical guide to the structure, taxonomy, measurement and use of intellectual capital (IC) in business. It traces the roots of IC and exposes and explains the remarkable lack of consensus that has been allowed to develop over the years and the methods used to try to measure it. In keeping with the practical, yet grounded, approach of the chapter, the chapter focuses on business innovation from an IC perspective. Most importantly, through a case study, the chapter introduces a practical means of measuring IC and modelling businesses predictively connecting soft issues such as human capital and relationship management with hard financial output. Recognising that IC is still an evolving discipline, the chapter offers a number of areas for future research and case study.

scholarly journals The mediating effect of financial performance on the relationship between intellectual capital & market share: Evidence from Tehran stock exchange

2017 ◽  
Vol 7 (4-1) ◽  
pp. 153-162
Author(s):  
Seyed Mohamad Fahimi ◽  
Hossein Fakhari
Keyword(s):  
Financial Performance ◽  
Market Share ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Value Added ◽  
Mediating Effect ◽  
Knowledge Based ◽  
Knowledge Based Economy ◽  
Research Findings ◽  
The Relationship

Intellectual capital has an important role in this knowledge based economy era. The purpose of this study is to examine the mediating effect of financial performance on the relationship between intellectual capital and market share in the listed Companies in the Tehran Stock Exchange in this study to assess the intellectual capital, the rate of value-added intellectual capital that developed by Pulic (1998) is used. The sample included 99 companies listed in the Tehran Stock Exchange, for a period of five years from 2011 to 2015. The research findings show a significant positive relationship between intellectual capital and market share. Also the results show that there is no mediating effect of financial performance in the relationship between intellectual capital and market share.

scholarly journals PENGARUH INTELLECTUAL CAPITAL PADA NILAI PERUSAHAAN PERBANKAN

2017 ◽  
Vol 6 (2) ◽  
Author(s):  
Novia Awaliyah ◽  
Retna Safriliana
Keyword(s):  
Intellectual Capital ◽  
Firm Value ◽  
Sampling Method ◽  
Stock Exchange ◽  
Value Added ◽  
Book Value ◽  
Knowledge Based ◽  
Positive Effect

The role of intellectual capital in knowledge-based business is increasingly required. Intellectual capital is belived to contribute to the improvement of frim value. The purpose of this studywas to test empirically the effect of intellectual capital on firm value. Intellectual capital iscalculated by value added intellectual coefficient (VAIC™) and firm value measured by the PriceTo Book Value (PBV) and Earning Per Share (EPS). The population in this study are bankingcompanies listed in Indonesia Stock Exchange during 2011-2015. The number of samples are 24firm that are selected using pourposive sampling method. This study uses observational datafor five periods, so the number of final samples are 120. The data were analyzed using simplelinear regression. The analysis first regression showed that the constants of -0,222 and a significance value of 0.000 which is smaller than á (0.05). This suggests that the positive effect ofintellectual capital on Price Book Value (PBV). And The analysis second regression showed thatthe constants of 0,993 and a significance value of 0.000 which is smaller than á (0.05). Thissuggests that the positive effect of intellectual capital on Earning Per Share (EPS).Ke ywords: Intellectual Capital, Firm Value, value added intellectual coefficient (VAIC™),Price Book Value (PBV), Earning Per Share (EPS).

scholarly journals DYNAMIC INTELLECTUAL CAPITAL MODEL IN A COMPANY

2015 ◽  
Vol 13 (1) ◽  
pp. 76-94 ◽  
Author(s):  
Vladimir SHATREVICH ◽  
Deniss ŠČEULOVS ◽  
Elina GAILE-SARKANE
Keyword(s):  
Dynamic Model ◽  
Intellectual Capital ◽  
Value Creation ◽  
Intangible Assets ◽  
Value Added ◽  
Dynamic Nature ◽  
Positive Interaction ◽  
A Company

The aim of this paper is to indicate the relations between company’s value added (VA) and intangible assets. Authors declare that Intellectual capital (IC) is one of the most relevant intangibles for a company, and the concept with measurement, and the relation with value creation is necessary for modern markets. Since relationship between IC elements and VA are complicated, this paper is aimed to create a usable dynamic model for building company’s value added through intellectual capital. The model is incorporating that outputs from IC elements are not homogeneously received and made some contributions to dynamic nature of IC relation and VA. Variables that will help companies to evaluate contribution of each element of IC are added to the model. This paper emphasizes the importance of a company’s IC and the positive interaction between them in generating profits for company.

scholarly journals Intellectual Capital Approach to Modern Management through the Perspective of a Company’s Value Added

2015 ◽  
Vol 16 (1) ◽  
pp. 31-44 ◽  
Author(s):  
Simona Survilaitė ◽  
Rima Tamošiūnienė ◽  
Vladimir Shatrevich
Keyword(s):  
Intellectual Capital ◽  
Value Creation ◽  
Intangible Assets ◽  
External Environment ◽  
Value Added ◽  
Strong Impact ◽  
Review Of Literature ◽  
Internal Resources ◽  
The World ◽  
A Company

The importance of value creation in small and medium-sized business companies has always been in focus. The changing environment makes a strong impact on all companies all over the world. Nowadays, the value added, which is created by the company, not only depends on tangible but also on intangible assets. It is not enough just to manage internal resources to be efficient or generate high value added. Knowledge and information as an important tool for the management of the external environment have become a new factor of a company. Since elements of the intellectual capital system are intangible and hardly measurable in company’s value added, this paper aims to create a model for the analysis of the creation of a company’s value added through intellectual capital. Subsequent to the review of literature on value creation and management, the authors proposed a model for value creation through intermediate, which presented three main elements of value added creation.

scholarly journals Intellectual Capital: How Do Islamic Ethics Rejuvenate It?

2017 ◽  
Vol 13 (3) ◽  
pp. 70
Author(s):  
Sakinah Mat Zin ◽  
Ahmad Azrin Adnan ◽  
Iskandar Hasan Tan Abdullah
Keyword(s):  
Intellectual Capital ◽  
Small And Medium Enterprises ◽  
Value Added ◽  
Superior Performance ◽  
Competitive Advantages ◽  
Islamic Ethics ◽  
Knowledge Based ◽  
Product Innovations ◽  
Knowledge Based Economy ◽  
Medium Enterprises

In this era of knowledge-based economy, intellectual capital (IC) is considered as a critical component in an organizational effort to emphasize on accomplishing competitive advantages and enhancing value added for the organization. Besides concentrating only on new product innovations, small and medium enterprises should also be engaged in managing IC in accordance to Islamic teachings. An understanding to Islamic ethics and its upshots for superior performance facilitates entrepreneurs in managing IC strategically. This paper aims to re-scrutinize several contributions in Islamic ethics and IC in SME entrepreneurial researches, ascertain the main elements of IC as well as Islamic work ethics (IWE); and thus show how IWE is relevant for research in the area of IC.

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