The study of intellectual capital and earnings in the Tehran Stock Exchange

Abstract

Intellectual capital as a vital stimulate for various organizations has been increased since different societies have transferred from industrial era to an information era. The aim of this study is relationship between intellectual capital and earnings in the petrochemical and pharmaceutical companies in Tehran Stock Exchange. The study was carried out in a period of time, between the years 2002 to 2008 which involved 40 petrochemical and pharmaceutical companies listed on the Stock Exchange of Tehran. Hypotheses of research include: 1- Between intellectual capital and stability of Earnings are a significant relationship. 2- Between human capital and stability of Earnings is a significant relationship. 3- Between structural capital and stability of Earnings is a significant relationship. The variable of this study is variable is C, HCE, SCE, CEE, SIZE. The results of testing these hypotheses indicate that there is a significant relationship between intellectual capital and stability of earnings in the studied enterprises and the firm size also has a moderator effect on the relationship between the two. Therefore, the role and importance of intellectual capital is more marked while accessing the sustainable profitability. Finally, it may be suggested that with the numerous indicators of earnings quality, future researchers can examine the relationship between intellectual capital and these indicators. Also, since in the present research the focus was mainly on the relationship between intellectual capital and corporate performance, and little was investigated about the methods of measuring intellectual capital, it is recommended to the future researchers to take this important issue into their close considerations.