Intellectual Capital and Corporate Performance of IT Companies: Evidence from Bursa Istanbul

  • Sedeaq Nassar Islamic University of Gaza
Keywords: Intellectual capital, Human capital, Structural capital, Capital employed, Value added intellectual coefficient


This study aims to investigate the impact of intellectual capital on corporate performance of IT companies listed on Borsa Istanbul for the period of 2004-2015. Value Added Intellectual Coefficient (VAIC) approach has applied to measure Intellectual Capital Efficiency (ICE) and corporate performance has calculated by using traditional accounting tools involving; Market, Productivity, and Financial performance. Market to book ratio (MB) and price to earnings ratio (PE) used as a proxy of market performance, productivity performance calculated by assets turnover (ATO) ratio, and return on assets (ROA), return on equity (ROE), and earning per share (EPS) ratios used as a proxy of financial performance. The findings show that human capital efficiency is the most effective factor in the issue of value creation than structural capital and capital employed for the study period before and after crisis especially with profitability measures ROA and ROE. SCE does not play a considerable role in value creation before and after the crisis. While Capital employed efficiency does not consider as an engine to value creation before the crisis, it plays a key role of value creation after the crisis.

Author Biography

Sedeaq Nassar, Islamic University of Gaza

Sedeaq Nassar is a Lecturer at Islamic University of Gaza- Palestine, Finance. His main research interests are in
Finance, Investment, and Stock markets.