Abstract: Intellectual capital assumes prominence in knowledge economy. It is both a resource as well as product. Performance of corporate and non-corporate entities in knowledge economy is gauged on the basis of quantity and quality of intellectual capital. Of late Tobin’s Q is increasingly found in the literature related to evaluation of intellectual capital. Though it was originally developed as a theory of capital market investments, it is widely used as a measure to quantify the intellectual capital of firms whose assets are traded freely in regulated market. The present study attempts to establish and explore a relationship between intellectual capital and Tobin’s Q, by theoretically assessing the suitability of using Tobin’s Q for evaluating the intellectual capital of firms, by constructing the components of intellectual capital using objective methodologies and by empirically establishing a relationship between Tobin’s Q and intellectual capital. While some studies in the western setting have explored the relationship between Tobin’s Q and intellectual capital, this paper set out to empirically test the relationship between Tobin’s Q and intellectual capital in ferrous metals industries as they fall under medium low technology segment of knowledge based manufacturing industries in India.
Keywords: Intellectual Capital, Tobin’s Q, Innovation.
Title: Investigating the relationship between Tobin’s Q and Intellectual Capital of Firms: An empirical study on Ferrous Metal Industry
Author: Sivakoumar. N, Kavida. V
International Journal of Interdisciplinary Research and Innovations
ISSN 2348-1218 (print), ISSN 2348-1226 (online)
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