Intellectual Capital Relevancy in Value-oriented Studies (With emphasis on Ohlson Model)

The following research is trying to survey the intellectual capital efficiency and that of its components in explanation of firm value based on Ohlson’s Model. According to this model, stock price is a function of book value, earnings and other kinds of information which may be relevant to predict firm value. In this research, intellectual capital was chosen as a proxy of other information. The multiple regressions analysis based on paneled data was the methodology employed for verifying the relations between variables. In this regard, a sample of 159 companies accepted in Tehran Stock Exchange over the period of 2006 to 2011 was selected. The related analysis was performed for three different periods including objected current period, subsequent period and two-subsequent period to distinct which period, intellectual capital effect on explanation of firm value will transfer to. The results indicate the fact that intellectual capital is positively associated with stock market price in subsequent period, while it was not seen a significant relation between intellectual capital and stock market price in current period and two-subsequent period. Also about the components of intellectual capital, interesting to note that only the employed capital, or in other words physical capital, has an important role in explanation of firm value in current and two subsequent period and the other components of intellectual capital including human capital and structural capital are unable to explain firm value. Furthermore, the investigations broke down to different industries showed different results in each industry and in few cases were not compatible enough with related observations obtained by researches have been already done in level of total companies.

Intellectual Capital, , Firm Value, Ohlson Model.