The Valuation of Intellectual Capital

64 Pages Posted: 27 May 2003

See all articles by Oliver P. Pfeil

Oliver P. Pfeil

Deutsche Asset & Wealth Management; Universität St. Gallen

Date Written: March 10, 2003


This paper studies the value relevance of Intellectual Capital by comparing a set of different valuation models. The empirical analysis covers 300 large European companies from 1990 to 2001. Drawing on the Ohlson (1995) and Feltham-Ohlson (1995) model, I define and test the value relevance of an Intellectual Capital earnings measure, providing evidence for the superior explanatory power of this metric compared to other income measures. I also find evidence for the superior explanatory power of a valuation function, based on IC earnings and operating earnings.

Keywords: Valuation, Intellectual Capital, Residual Income, Resource-based view

JEL Classification: M4, G3

Suggested Citation

Pfeil, Oliver P., The Valuation of Intellectual Capital (March 10, 2003). Available at SSRN: or

Oliver P. Pfeil (Contact Author)

Deutsche Asset & Wealth Management ( email )

Mainzer Landstr. 11-17
Frankfurt, 60329
+49-172-6296223 (Phone)

Universität St. Gallen ( email )

Dufourstr. 50
Saint Gallen, 9000

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics