Intellectual Capital Investments: Evidence from Panel VAR Analysis
19 Pages Posted: 23 Jan 2013
Date Written: January 22, 2013
It is believed that investments in intellectual capital enable a company to create a competitive advantage that results in the ability to earn economic profits and increase company value. However, this influence is reciprocal: Companies that generate more money can invest more funds in intellectual capital. The aim of this study is to use vector autoregression (VAR) to analyze the return on investments for companies in tangible and intellectual assets. This instrument allows us to take into account both the lag effect and the mutual influence of intellectual capital components.
Keywords: vector autoregression, intellectual capital, return on assets, economic value added, investments, panel data
JEL Classification: C22, C33, G30, O30
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