Article: The Application of the Value Added Intellectual Coefficient to Measure Corporate Performance: Evidence from Technological Firms

This research applies a new accounting tool for measuring the 'value creation' efficiency of a company, the Value Added Intellectual Coefficient (VAIC TM) of Pulic (1998). It also examines its correlation with corporate performance, based on the 2003 annual report from 80 Taiwan listed technologies firms. After modifying the model, applications show that the index of VAIC had a significantly positive correlation with profitability (ROA) and market valuation (MB), and a negative correlation with productivity (ATO), three aspects of a firm's performance. The findings suggest that technological industry in Taiwan is capable of transforming intangible assets such as intellectual capital to high ...

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