The Influence of Intellectual Capital on Corporate Performance of The Turkish Wholesale and Retail Trade Companies

Abstract

This study aims to discuss the influence of intellectual capital on corporate performance of the Wholesale and Retail trade companies listed in Borsa Istanbul. The study utilized data collected from 26 listed companies for the period of 2010-2015. The Value Added Intellectual Coefficient (VAIC) model has been used to calculate Intellectual Capital Efficiency (ICE), while corporate performance has been measured using traditional accounting measures, such as; Market, Productivity, and Financial performance. Market performance is represented by market to book ratio (MB) and price to earnings ratio (PE), productivity performance is measured by assets turnover ratio (ATO), and financial performance is represented by return on assets (ROA), return on equity (ROE), and earning per share (EPS) ratios. Panel data regression model is utilized to find the relationship between IC and its components; Human capital Efficiency (HCE), Structural Capital Efficiency (SCE), and Capital Employed Efficiency (CEE), with company’s performance represented by Market, Productivity, and Financial performance. The findings indicated that Turkish wholesale and retail trade companies are paying good attention to the use of the VAIC components especially HCE in value creation.

Keywords: : Intellectual capital, Human capital efficiency, Structural capital efficiency, Capital employed efficiency, Value added intellectual coefficient

JEL Classification: G14, G32, O34