Intellectual Capital Efficiency and the Growth Rate of a Company
Volume 35, Issue 3 (2021), pp. 15–23
Pub. online: 4 August 2022
Type: Article
Open Access
Open Access
Published
4 August 2022
4 August 2022
Abstract
Intellectual capital (IC) has evolved and excelled as an academic discipline since the early 1990s, and has reached the fourth stage of research. Research was promoted by analysts in companies to understand the value creation process and identify resources required. Investment and spending on IC and value creation analysis have changed a firm’s decisions and impact analysis.
Elaborating on the analysis of a company’s statements, as audited and public data, a thorough analysis of companies’ IC and its components has been undertaken, improving the methodology of the evaluation of the impact. This article contributes to the development of intellectual capital theory, value-based management theory, and resource-view theory.
In the paper, the author proves the hypothesis on the impact of intellectual components on the growth rate of Nasdaq Baltic issuers in the period 2012 to 2019, extending the composite model with intellectual capital variables identified in the research, by adding normalisation proxies, longitudinal analysis and a number of moderate and control variables. The author’s proposed analysis also demonstrates the use of theoretical methods at the Baltic level, and new aspects and unique results at an international level. The study reveals a significant and positive relationship between intellectual capital efficiency, its components, and the growth rate of the companies, identifying dominating significant constituents of intellectual capital in Nasdaq Baltic companies.