Intellectual Capital (IC) and Performance of listed companies: Empirical Evidence from Italy

Purpose – The purpose of this paper is to investigate the relationship between corporate performance and Value Added Intellectual Coefficient (VAICTM) on the one hand, and the relationship between the variations in MV and the variations in VAIC on the other hand. Design/methodology/approach – Starting from the VAIC model, 23 Italian listed companies were examined with the aim of investigating the relationship between VAIC and the performance of the firms in the sample. The analysis can be divided into two stages. In the first stage, after the correlation analysis, 8 models of linear regression were estimated to verify the presence of a positive and statistically significant relationship between M/BV and VAIC and between accounting performance indicators (ROE, ROI, ROS) and the VAIC. In the second phase, 6 other models were tested, considering as an independent variable the variations in MV and VAIC and the variations in profitability indicators and VAIC throughout the period of analysis. Originality/value – This methodology highlights some very interesting aspects. In particular, whereas the relationship between M/BV and VAIC and between profitability indicators (ROI, ROE, ROS) and VAIC is statistically insignificant, the subsequent analysis highlights the importance of VAIC as a variable capable of increasing the explanatory power of the regression in a cross-sectional perspective. Practical implications – The outcomes of the application stress the importance of VAIC in the explanation of the variations in MV and its role as “additional coefficient” in theanalysis of equity performance. In other words, the use of VAIC in regression analysis improves the explanatory power of the model.