| Pub. Date | : Jan, 2021 |
|---|---|
| Product Name | : The IUP Journal of Management Research |
| Product Type | : Article |
| Product Code | : IJMR10121 |
| Author Name | : Shelly and Mohammad Firoz |
| Availability | : YES |
| Subject/Domain | : Arts & Humanities |
| Download Format | : PDF Format |
| No. of Pages | : 12 |
The significance of intangible assets has increased gradually in the present scenario. In particular, industries still cannot accurately determine intellectual capital adopting the traditional accounting systems. The present study helps to examine the impact of IC on the financial efficiency of the power sector in India. The empirical data was captured from the companies' annual reports, primarily from the P&L account and balance sheets of top organizations in the power sector. The selection of companies has been done based on market capitalization. The VAIC method is used for calculating the IC of firms. OLS regression is applied to analyze the implications of intellectual capital on financial efficiency. The results indicate that the Indian power sector has a progressive impression on intellectual capital with financial efficiency.The study suggests that India's power sector should invest in IC to improve its performance.
Generally, land, labor, and capital were contemplated as the components for any economic activity's assets valuation. The recent changes in the global economy due to advanced technology, relatively free capital and increasing competition have modified the structure of production system. Due to these factors, the economy has expanded its focus on intellectual capital. Formation of IC is the source of economic value generation. Intellectual capital is a kind of knowledge, intellect and mental-ability movement that utilizes information to esteem (Galbraith, 1969). Sveiby's (1997) IC comprised invisible resources of an association, which included employee capability, internal structure, and external structure. Skandia (1994) defined IC as possession of knowledge, shared understanding, hierarchical novelty,