Intellectual Capital and Corporate Performance of Technology-Intensive Companies: Malaysia Evidence

  • Kin Gan
  • Zakiah Saleh


This paper examines the association between Intellectual Capital (IC)
and corporate performance of technology-intensive companies
(MESDAQ) listed on Bursa Malaysia by investigating whether value
creation efficiency, as measured by Value Added Intellectual Capital
(VAICTM), can be explained by market valuation, profitability, and
productivity. Correlation and regression models were used to
examine the relationship between corporate value creation efficiency
and firms’ market valuation, profitability and productivity. The
findings from this study show that technology-intensive companies
still depend very much on physical capital efficiency. The study also
suggests that individually, each component of the VAIC commands
different values compared to the aggregate measure, which implies
that investors place different value on the three VAIC components.
The results also indicate that physical capital efficiency is the most
significant variable related to profitability while human capital
efficiency is of great importance in enhancing the productivity of the
company. This study concludes that VAIC can explain profitability
and productivity but fails to explain market valuation.
Keywords: Intellectual Capital; Market Valuation; Productivity;
Profitability; Value Added Intellectual Coefficient
JEL classification: G14, M41, O34

How to Cite
GAN, Kin; SALEH, Zakiah. Intellectual Capital and Corporate Performance of Technology-Intensive Companies: Malaysia Evidence. Asian Journal of Business and Accounting, [S.l.], v. 1, n. 1, p. 113-130, june 2008. ISSN 2180-3137. Available at: <>. Date accessed: 27 june 2017.

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