1 / 10

Applying the VAIC ™ Model to Russian Industrial Enterprises

Applying the VAIC ™ Model to Russian Industrial Enterprises. 3 European Conference on Intellectual Capital, 17-19 April, 2011 PhD, Molodchik Mariya A., Bykova Anna A. High School of Economics, Perm. Higher School of Economics , Moscow , 2011 www.hse.ru. Research motivation.

blanca
Download Presentation

Applying the VAIC ™ Model to Russian Industrial Enterprises

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Applying the VAIC™ Model to Russian Industrial Enterprises 3 European Conference on Intellectual Capital, 17-19 April, 2011 PhD, Molodchik Mariya A., Bykova Anna A. High School of Economics, Perm Higher School of Economics , Moscow, 2011 www.hse.ru

  2. Research motivation World wide discussion of the strategic role of intellectual capital in value creation Fewness of intellectual capital empirical investigations based on Russian firms The search for the instrument allowing express intellectual capital analysis that can be applied to an industrial enterprise

  3. Structure capital (SC) Structural capital efficiency (SCE) The research scheme* Source: modified from Laing, Dunn, Hughes-Lucas (2010). ROE Intellectual capital efficiency (ICE) Total Labor Productivity Human capital (HC) Value Added Intellectual Coefficient(VAIC) Human capital efficiency (HCE) Sales growth Capital employed (СE) Capital employed efficiency (CEE) Profitability New integrated indicator Resources Resources efficiency indicators Traditional indicators Additional variables: Capex, R&D expenditures Control variables: Firm size, Industries

  4. VAICcalculations(Pulic, 2000) VA – Value Added: the difference between total sales (OUT) and material costs (INPUT) CE - Capital Employed: book value of the net assets HC - Human capital: companies’ total salaries and wages SC- Structural capital: the difference between value added (VA) and human capital (HC) HCE = VA/HC; SCE = SC/VA; CEE = VA/CE ICE = HCE+SCE VAIC = ICE +CEE

  5. Selected empirical evidence from other countries • Pulic (2000). 30 randomly selected companies from the FTSE (UK) 250 from 1992 through 1998. The average values of VAIC and a company’s market value exhibited a high degree of correspondence. • Chen et al. (2005). All companies listed on the Taiwan Stock Exchange (TSE) during 1992-2002. ROA is positively depended on the CEE, HCE, SCE, R&D and Advertising expenditures. • Firer and Williams (2003). 75 publicity traded companies in South Africa.. They have not found any strong positive effects of VAIC on profitability, productivity and market value. The overall physical capital appeared as the most significant resource of the corporate performance. • Volkov and Garanina (2007). Russian publicity traded companies. Method – CIV. “Almost in all industries it is still more profitable to invest in tangible assets rather than in intangible ones”.

  6. Research questions Hypothesis 1.The positive link between VAIC and organizational performance indicators exists for the Russian industrial companies. Y = α + α1VAIC+ α2Capex+ α3R&D+ α4Size+ α5Industry + ξ Hypothesis 2.The positive link between the intellectual capital and capital employed efficiency and company performance indicators exists for the Russian industrial companies. Y= α + α1ICE+ α2CEE + α3Capex+ α4R&D+ α5Size+ α6Industry + ξ

  7. Data Base: 350 Russian industrial enterprises of Perm region (Russia) Russian federal agency of government statistics (Rosstat) and its regional department (Permstat), “SPARK-INTERFAX”, “FIRA Pro” 2005-2007 years The sample descriptive adjectives (2007)

  8. Results For the Perm companies our results suggest that VAIC and its components with other establishments are significantly associated with a company’s performance measured by total labour productivity. Total labour productivity=32,89VAIC+ 0,002Capex+ 232,71R&D+ ξ Adj. R-square=0,562 Observation numbers=226 Total labour productivity= 41,51ICE+ 0,002Capex+ 235,22R&D + ξ Adj. R-square=0,563 Observation numbers=226 The industry and size are non-significant

  9. Further researchThis study comprises research findings from the ”Intellectual Capital Evaluation” Project carried out within The Higher School of Economics’ 2011 Academic Fund Program. Changes in database: Geographic: Russia, USA, Canada, Brazil, Great Britain, Germany, Ukraine, Turkey, Finland, Denmark and Spain Requirements on firms: public, employees number - no less than 500 and no more than 20 000 people Changes in methodology: Dependent variables: EVA, FGV, Q-Tobin, VAIC; Independent variables: R&D, IA, proxy-indicators of IC – brand-power, employees qualification, quality of web-site and others

  10. 38, Studencheskaya str., Perm, Russia, 614070 Tel.: +7 (342) 2825848, www.perm.hse.ru Contact us: mmolodchik@hse.ru, abykova@hse.ru

More Related