Abstract

The purpose of this study is to explore and explain the relationship between Intellectual capital and Economic value added in 150 Malaysian firms during the years 2000 and 2011. Intellectual capital are considered as an independent variable which divided to human, relational and structural capital, to measure the ingredients of intellectual capital operating revenues have been used to form the proxy of human and relational capital and research and development expenditures have been used in the structural capital equation. Economic value added is considered as dependent variable that represents the value of the firms. Debt to equity ratio and Administrative expenses per staff are considered as intervene and control variable and their effect have been analyzed on the firms value added the method of multiple regressions has been used to predict the impact of intellectual capital and value added. The finding of this study shows that there is a positive relation between intellectual capital and economic value added; it also indicates that the effect of debt to equity ratio on economic value added is positive but this relation for Administrative expenses per staff is negative.

Keywords:

Economic Value Added (EVA), intellectual capital, Malaysian firms, panel data,

References

Competing interests

The authors have no competing interests.

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Copyright

The authors have no competing interests.