AI knowledge-based companies and Investment in Intellectual Capital

In this research work, the modest attempt is made to determine the intellectual capital performance

and to examine whether intellectual capital performance is related to the corporate financial performance of Indian knowledge-based companies or not. Intellectual capital performance is measured with the VAIC methodology proposed by A. Pulic. Company financial performances are measured in two dimensions namely, profitability and shareholders’ value creation. Company financial performances are not only influenced by intellectual capital performance but some factors at the organizational level are also taken into consideration for checking company performance. As the study proposes a functional relationship among multiple constructs, so multiple regression analysis is applied to conduct the study.

Algorithms/Methods Implemented:

1. Method to implement multiple regression equations for fitting
2. Implementation of Pulic’s value-added intellectual capital (VAIC) methodology
3. Partial adjustment model implementation
4. Testing of  multicollinearity IC efficiency measurement model by using Variance inflation factors (VIFs)

Technologies/Software:

1. Multiple regression techniques
2. M/B ratio and Tobin’s Q.