2016

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Impact of Intellectual Capital on Firms Financial Performance In Pakistan.
(UMT,Lahore, 2016) Sidra Mumtaz
The motive of the study is to assure the significance of intellectual capital on firm’s financial performance in Pakistan’s non-financial sector from 2008-2014. It is a clear fact that intellectual capital plays substantial role in profitability and productivity of a business organization. Previous studies found a number of variables to measure the components of intellectual capital and firm’s profitability. However, this study includes modified value added intellectual capital (M-VAIC™) which is a restructured form of value added intellectual coefficient (VAIC™) introduced by (Pulic, 2000). In this research the progress of an organization is ascertained by different profitability ratios. Leverage, growth and firm size are taken as control variables. The companies should focus on their human, structural and relational capital because there is no company which can exist without the involvement of intellectual capital. It is a clear fact that tangible assets are important for growth and profitability of business and enhance also the productive resources of company. The results show that intellectual capital has significant role in the performance of non-financial companies in Pakistan. This study shows that intellectual capital positively affects operating income return on investment and return on assets.