Value Relevance of Intellectual Capital in Indian Pharmaceutical Sector : Does Size of Firm Matter?

Authors

  • Santi Gopal Maji
  • Mitra Goswami

DOI:

https://doi.org/10.33516/rb.v41i2.85-103p

Keywords:

Intellectual Capital, Human Capital, Structural Capital, Physical Capital, Firm Performance, Large and small firms, Pharmaceutical sector.

Abstract

In an economy dominated by creation and diffusion of knowledge, intellectual capital is gradually being recognized as the crux for value creation and as a key factor of enhancing the competitive position of a firm. The present study is a modest attempt to unveil the influential ability of intellectual capital on financial performance of large and small firms in Indian pharmaceutical sector during 1999- 2000 to 2012-2014. Employing panel data regression and quantile regression, the study finds that intellectual capital has a positive impact on the financial performance of both large and small firms. Nonetheless, the influence is significantly higher in case of large firms than in small firms. The results also indicate that the financial performance of small firms largely influenced by utilization of intellectual resources rather than physical resources. In contrary, for large firms both physical and intellectual capital play crucial role in enhancing firm performance and creating significant gap between market value and book value. Among the components of IC, the impact of HCE is positive and significant for both the firm groups. However, the study fails to disentangle any significant influence of SCE on the financial performance of small firms.

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Published

2015-07-01

How to Cite

Maji, S. G., & Goswami, M. (2015). Value Relevance of Intellectual Capital in Indian Pharmaceutical Sector : Does Size of Firm Matter?. Research Bulletin, 41(2), 85–103. https://doi.org/10.33516/rb.v41i2.85-103p

Issue

Volume 41, Issue 2, July 2015

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

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