INVESTIGATING THE IMPACT OF INTELLECTUAL CAPITAL ON FINANCIAL PERFORMANCE IN INDIAN MANUFACTURING SECTOR

This paper empirically examine the association of intellectual capital efficiency with financial performance measures namely productivity, profitability and market valuation in Indian manufacturing sector respectively. Value added intellectual coefficient (VAICTM) has been used for measuring intellectual capital efficiency. 10 years data of Top 50 companies from the manufacturing sector have been selected from CMIE Prowess database. The result evince that IC is significantly affecting the profitability, while it is not playing any significant role in increasing the productivity and market valuation of the companies. There is an immediate need for companies to utilize their intellectual capital effectively and efficiently to increase the financial performance.