Faithin Omaha eBook Collection

Download or read book Intellectual Capital Accounting and Its Impact on Organizational Financial Performance written by Payam Mojtahedi and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Today intellectual capital (IC) is most important intangible asset and reporting of its information has influenced on transparency of managements accountability. The purpose of this study is to explore the relationship between intellectual capitals and financial performance in 150 Malaysian firms over the period 2000-2011, base on the concept of value added intellectual capital has been calculated. To determine financial performance three proxies have been used, earning per share (EPS) Return of capital equity (ROCE) and growth of annual sales (GS). Intellectual capital (human capital, relational capital and structural capital) have been calculated and analyzed. The technique of multiple regressions and panel data analysis has been used to predict the impact of IC on financial performance. Findings from the empirical analysis indicate that the relationships between intellectual capital and financial performance of Malaysian companies (profitability, and Growth in sales) are positive, significant and informative. The empirical findings suggest that exact managing and reporting of intellectual capital assets will create value to the organization.