Research On The Impact Of Intellectual Capiyal Upon Corporate Profitability

In the knowledge economy time, knowledge is gradually replacing traditionalfactors of production, such as equipment、fund、raw material and labor, as a chiefresource of corporate development. Research of knowledge and corporatedevelopment is now occupying an important area of management research, whileIntellectual Capital Theory provides a new angle to these researches. This paperstudies the impact of intellectual capital and its inscape upon corporate profitability ofmanufacturing companies by building multiple linear regression model. It also makesa comparative research using data of2005and2012.In the respect of research design, this paper uses Value Added IntellectualCoefficient (VAIC) model to make systematically research on the impact ofintellectual capital and its inscape upon Chinese corporate profitability, making thispaper more systemic than previous relevant research. In the respect of researchsubject, this paper chooses manufacturing listed companies refer to the 《IndustryClassification of Listed Company》 published by China’s Securities RegulatoryCommission. I divide manufacturing listed companies into seven segments to makethis research more specific. As to research method, this paper compares the impacteffect between2005and2012, to avoid limitations and broaden extent of previousresearch.The result of research reveals the positive impact of intellectual capital andits inscape upon corporate profitability, whose degree related to the nature of theindustry. The result also shows a balance trend of the impact effect in recent years.On the basis of the research conclusion, I suggest manufacturing companies todevelop and manage intellectual capital without neglecting their nature of industry toachieve balanced development of intellectual capital, thus improve the corporateprofitability and secure an invincible position on world market.