THE RELATIONSHIP BETWEEN INTELLECTUAL CAPITAL QUALITY AND CORPORATE PERFORMANCES: AN EMPIRICAL STUDY OF RUSSIAN AND EUROPEAN COMPANIES

Abstract

The purpose of this research is to develop cost-effectiveness tools for the analysis of a company’s intellectual resources, in terms of resource-based and value-based approaches. Our study focuses on the evaluation of intellectual capital methods to discover the drivers of company growth. We suppose that the potential effectiveness of intellectual capital resources varies according to different institutional factors. Several statistical methods will be used for the empirical issues in this research, including common cross-sectional and panel data analysis, and the instrumental variables method. The database collected for this purpose will consist of financial and economic indicators underlying the intellectual capital evaluation, such as strategic performance indicators (EVA© and FGV©). The dataset includes companies from different countries and industries according to the Knowledge Economy Index of the World Bank. The industries presented in the dataset are selected according to the predominance of several intellectual capital elements. The database includes financial services, wholesale and retail trade, machinery and equipment manufacture, the chemical industry, and transport and communications. As a result of the empirical research, we expect to answer the following questions: Is there a close relationship between intellectual capital quality and company performance? What are the external and internal factors affecting this relationship? (country, industry, company size, market dynamics, etc.)