The investigation of effect of firm's performance and institutional ownership in intellectual capital about firm's accepted in TSE

Document Type : Original Article

Authors

10.22034/iaar.2014.104389

Abstract

Intellectual capital (IC) is one of the most important intangible assets in the firms. Theoretical literature and empirical evidences suggest that IC has direct effect in the firm's value and performance.
With regard the importance of topic, this paper investigates effect of firm's performance and institutional ownership in intellectual capital about firms accepted in TSE.
In this sense the ROA is considered as proxy of performance measurement, the ratio of stock in institutional ownership to total issued stocks as institutional ownership measure
 For measuring of IC, the difference between market value and book value of net assets with adjusting regard to inflation is selected.
Control variables that used are firm size and growth opportunity. The empirical evidence from investigating of 73 firms in the period between 2001 and 2011, suggest that firm performance has positive relation with IC, significantly. Although there was no significant relation between institutional ownership and IC. The positive relation between firm performance and IC suggests that market shows more positive reaction to the firms with better performance and this caused IC.

Keywords

Accounting and Auditing Research
Volume 6, Issue 22
July 2014
Pages 52-69

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