Access the full text.
Sign up today, get DeepDyve free for 14 days.
C. Stam, D. Andriessen (2009)
Intellectual capital of the European Union 2008
D. Andriessen (2004)
IC valuation and measurement: classifying the state of the artJournal of Intellectual Capital, 5
Kin Chan, S. Chu, Wendy Wu (2012)
Exploring the Correlation Between Knowledge Management Maturity and Intellectual Capital Efficiency in Mainland Chinese Listed CompaniesJ. Inf. Knowl. Manag., 11
T. Stewart (1997)
Intellectual Capital: The New Wealth of Organizations
S. Aho, S. Ståhle, P. Ståhle
Aineettoman pääoman mittaaminen: VAIC ja CIV‐menetelmien kriittistä tarkastelua (Measuring intellectual capital: a critical examination of the VAIC and CIV methods)
K. Gan, Z. Saleh (2008)
Intellectual Capital and Corporate Performance of Technology-Intensive Companies: Malaysia EvidenceAsian Journal of Business and Accounting, 1
P. Sullivan (1998)
Profiting from Intellectual Capital: Extracting Value from Innovation
A. Pulic (2004)
Intellectual capital – does it create or destroy value?Measuring Business Excellence, 8
A. Pulic (2005)
Chapter 12 – Value Creation Efficiency at National and Regional Levels: Case Study—Croatia and the European Union
C. Corrado, Daniel Sichel, C. Hulten (2004)
Measuring Capital and Technology: An Expanded FrameworkMacroeconomics eJournal
N. Bontis (2004)
National Intellectual Capital IndexJournal of Intellectual Capital, 5
S. Chu, Kin Chan, K. Yu, Hing Ng, Wai Wong (2011)
An Empirical Study of the Impact of Intellectual Capital on Business PerformanceJ. Inf. Knowl. Manag., 10
J. Zahn, G. Tower, J. Neilson (2004)
Intellectual Capital and the Efficiency of Value Added: Trends in the Singapore Capital Market 2000 - 2002
L. Edvinsson (2005)
Chapter 2 – Regional Intellectual Capital in Waiting: A Strategic Intellectual Capital Quest
L. Basso, H. Kimura, J. Aguiar (2009)
Intellectual Capital and Value Creation at Brazilian Companies: An Analysis of Manufacturing Industry from 2000 to 2006ERN: Search
B. Lev (2001)
Intangibles: Management, Measurement, and Reporting
L. Edvinsson, M. Malone (1997)
Intellectual Capital: Realizing Your Company's True Value by Finding Its Hidden Brainpower
Paula Kujansivu, Antti Lönnqvist (2007)
How do investments in intellectual capital create profitsInternational Journal of Learning and Intellectual Capital, 4
B. Appuhami (2007)
The Impact of Intellectual Capital on Investors' Capital Gains on Shares: An Empirical Investigation of Thai Banking, Finance & Insurance SectorInternational Management Review, 3
Purpose – The purpose of this study is to analyse the validity of the value added intellectual coefficient (VAIC) method as an indicator of intellectual capital. Design/methodology/approach – The paper describes VAIC through its calculation formulae and aims to establish what exactly it is that the method measures. It also looks in detail at how intellectual capital is understood in the method, and discusses its conceptual confusions. Furthermore, the paper tests the hypothesis according to which VAIC correlates with a company's stock market value, and reflects the contradictory results of earlier studies. Findings – The analyses show, first, that VAIC indicates the efficiency of the company's labour and capital investments, and has nothing to do with intellectual capital. Furthermore, the calculation method uses overlapping variables and has other serious validity problems. Second, the results do not lend support to the hypothesis that VAIC correlates with a company's stock market value. The main reasons behind the lack of consistency in earlier VAIC results lie in the confusion of capitalized and cash flow entities in the calculation of structural capital and in the misuse of intellectual capital concepts. Practical implications – The analyses show that VAIC is an invalid measure of intellectual capital. Originality/value – The result is important since the method has been widely used in micro and macro level analyses, but this is the first time it has been put to rigorous scientific analysis.
Journal of Intellectual Capital – Emerald Publishing
Published: Oct 25, 2011
Keywords: Validity of intellectual capital measures; Value added intellectual coefficient; Measurement of company efficiency; Intellectual capital; Finland; Financial management
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.