Intellectual Capital and Firm Performance of U.S. Multinational Firms: A Study of the Resource-Based and Stakeholder Views

26 Pages Posted: 27 Jan 2003  

Ahmed Riahi-Belkaoui

University of Illinois at Chicago - Department of Accounting

Date Written: December 2002

Abstract

The resource-based view of the firm maintains that firms achieve a sustainable comparative advantage and earn superior profits by owning or controlling tangible as well as intangible strategic assets. The stakeholder view recommends that a better measure of financial performance than accounting profit is the total wealth created or net value added. Accordingly, this study examines the relationship between a return on total assets based on net value added and the specific intangible asset of intellectual capital to test the resource view of the firm. The results using a sample of U.S. multinational firms are statistically significant in support of both the resource-based and stakeholder views.

Keywords: intellectual capital, value added reporting, resource-based view, stakeholder view

JEL Classification: M41, M44

Suggested Citation

Riahi-Belkaoui, Ahmed, Intellectual Capital and Firm Performance of U.S. Multinational Firms: A Study of the Resource-Based and Stakeholder Views (December 2002). Available at SSRN: https://ssrn.com/abstract=365580 or http://dx.doi.org/10.2139/ssrn.365580

Ahmed Riahi-Belkaoui (Contact Author)

University of Illinois at Chicago - Department of Accounting ( email )

601 South Morgan Street
University Hall, Room 2303
Chicago, IL 60607
United States
312-996-4400 (Phone)
312-996-4520 (Fax)

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