An Empirical Research On The Relationship Of Intellectual Capital And Corporate Performance

Entering the era of knowledge economy, gradually but fundamentally,competition mode of enterprises has changed from traditional material capitalcentered to knowledge and ability centered way. Intellectual capital willbecome important mean for value added and create an important source ofprofit. And it will be one of the key factors for enterprises to grow. The corecompetence of enterprises has changed from having a product or technologyinto mastering the variety of knowledge and skills comprehensively. Thedevelopment and management of knowledge is closely related to intellectualcapital. Therefore, intellectual capital has become a hot issue in domestic andforeign scholars. The domestic and foreign scholars angles the relevancebetween intellectual capital and value of companies on theory and empiricalresearch from different perspectives.This paper reviews domestic and foreign literatures and summarizes thetheory, concept, elements, characteristics and evaluation methods ofintellectual capital, and then empirical analyses how the various elements ofintellectual capital impact on the corporate performance by using thecompanies’ date listing in Shanghai and Shenzhen Stock Exchanges from2005to2007. And taking into account of the market in different regions ofgreatly uneven development may affect the elements of intellectual capitalimpacting on the corporate performance, which introduces interactive itemsbetween the various components of intellectual capital and the marketizationprocess which is the interactive item of human capital and the marketizationprocess and the interactive item of structural capital and the marketizationprocess to study human capital and structural capital how to impact theperformance of companies in different areas. The perspective of the studyextends to market level of different areas where China’s listed companiesstand in, and then study the relationship between intellectual capital which including human capital and structural capital and the corporate performance,which is significance.The main conclusions of this paper: First, material capital is still theimportant source of creating corporate performance, which is the greatestcontribution to enterprise value-added. Second, human capital which is acomponent of intellectual capital has significant positive effect on corporateperformance, but structural capital which is another component of intellectualcapital has negative impact on corporate performance. Third，as developmentof process of marketitation，material capital and human capital which is acomponent of intellectual capital impacting on corporate performance hasstrengthened.However structural capital which is a component of intellectualcapital effect on corporate performance has decreased.Finally, based on the empirical regression results and analysis, this paperproposes some countermeasures to improve corporate performance ofChina’s listed companies, meanwhile describes the defect of this paper andrecommendations of the follow-up study.