Intellectual capital and firm performance - An application of VAICTM model for the Vietnamese financial services sector

Abstract

This research applies the Value Added Intellectual Coefficient (VAICTM) model by Pulic (2000) with the aim to empirically investigate the impact of value added intellectual coefficient (VAIC), capital employed efficiency (CEE) and intellectual capital efficiency (ICE) on the performance of the Vietnamese financial services firms. The data used in the research is collected from 34 listed financial services firms on Ha Noi Stock Exchange and Ho Chi Minh Stock Exchange for the period of 2009-2013. The linear multiple regression is employed for the data analysis. The findings of this research show that the value added intellectual coefficient has a significant positive impact on the firm performance. In addition, capital employed efficiency and intellectual capital efficiency are shown to be significant predictors of the firm performance. The findings suggest that financial services firms should focus on improving their efficiency in the use of key resources including tangible assets and intellectual capital to increase their profitability. This research results may help the managers of financial services firms in managing the company’s resources and formulating strategies to improve the firm performance and competitiveness as well as better communicate with the stakeholders.