Comparative analysis reveals strong ties between intellectual capital and financial performance in S&P 500 firms, indicating significant relevance.
The current paper examines the influence of intellectual capital (IC) on financial performance and market value using a comparative analysis of the value-added intellectual coefficient (VAIC) and its modified and extended versions. The study employs panel data from S&P 500 firms from 2012 to 2022, utilizing Two-Stage Least Squares (2SLS) regression alongside descriptive statistics and correlation analysis. Results indicate a strong relationship between IC and financial performance and market value. Among the VAIC components, capital-employed efficiency has the highest predictive power, underscoring the continued importance of tangible assets. Including relational capital improves the explanatory power of the e∗VAIC model compared to VAIC. This study contributes to the limited research on IC in large U.S. firms, offering insights into the comparative effectiveness of these models in explaining firm performance and market value.
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D’souza et al. (2025) studied this question.
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