The review on impact of intellectual capital on financial performance of investment companies accepted in Tehran Stock Exchange Organization (TSEO)

Abstract

The present period is age of knowledge based economy. By virtue of the existing limitations in tangible sources, today role and importance of intangible sources has been highly improved. According to the attitude based on corporative sources, one of the important sources for enterprises is intellectual capitals, particularly in investment companies that are usually benefitted from less tangible sources. Thus, the present study is intended to examine the impact of intellectual capital on financial performance of investment companies which have been accepted in Tehran Stock Exchange Organization (TSEO) within the studied time period (2006-2010) and the selected sample comprises of 28 investment enterprises. In order to measure intellectual capital, Value- Added Intellectual Capital (VAIC) factor, which had been codified by Palick (2000), was used that is one of the paramount and most valuable evaluation techniques for intellectual capital. The results obtained from testing hypotheses in this study that derived by means of Ordinary Least Squares (OLS) regression suggest that intellectual capital has direct and significant effect on financial performance of investment companies and at the same time there is a direct and significant correlation among intellectual capital and future performance.