Intellectual Capital and Firm Performance in the Ghana Stock Exchange

54 Pages Posted: 6 Jul 2021

Date Written: July 21, 2020


In the current knowledge economy, intellectual capital serves as a strategic asset, yielding competitive advantage. Studies have explored how this asset affects organizational performance. These studies were mostly on the banking industry, at the expense of listed firms, which constitute a different industry. Results on the stock market can be beneficial for a wide range of stakeholders due to the significant role the market plays in the economy. The purpose of this study was to examine the impact of intellectual capital on the performance of listed firms. The study used the Value Added Intellectual Coefficient (VAICTM) model as a proxy for intellectual capital performance, which has human capital efficiency, structural capital efficiency and capital employed efficiency as components. Also, a dataset of 18 companies listed on the Ghana Stock Exchange between 2008 and 2017 was used with return on asset, return on equity and Tobin’s Q as measures of performance. The regression results indicated that VAICTM and all the three components positively and significantly affected profitability. However, market performance measured by Tobin’s Q was not affected by intellectual capital. The results are significant for the corporate world, suggesting that investment in knowledge assets is an essential means of enhancing profitability. However, the market players in the Ghanaian bourse may not be considering the intellectual capital quotient of firms in their interactions in the market. Financial analysts are advised to include intellectual capital ratios as part of predicting models.

Keywords: Intellectual Capital, Ghana Stock Exchange, VAIC, Firm Performance, Intangible Assets

Suggested Citation

Agomor, Philip Elikplim, Intellectual Capital and Firm Performance in the Ghana Stock Exchange (July 21, 2020). Available at SSRN: or

Philip Elikplim Agomor (Contact Author)

Dataking Consulting ( email )

Accra, Volta Region +233
+233 (Fax)

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