Relationship between effect of intellectual capital on performance of value and growth companies listed in Tehran Stock Exchange (TSE)

Subject Areas : Financial Knowledge of Securities Analysis

Received: 2010-05-08 Accepted : 2010-09-03 Published : 2010-06-22

Keywords: Intellectual Capital, value of investment companies, Investment Companies, growth attitudes,

Abstract :

This study investigates the effect of intellectual capital on the financial performance of both value and growth companies listed in Tehran Stock Exchange (TSE). Performance is measured using return on equity (ROE) and return on investment (ROI). Study sample includes 64 companies out of all listed companies on TSE for which the relevant information during the years 1383 till 1386 are available. The results show a significant relation between intellectual capital and the return on investment companies, but no relation for growth companies. The results also show that there is positive relationship between intellectual capital and return on equity for growth companies and return on equity and return on investment in value companies. On the other hand, no significant difference between the effect of intellectual capital on return of investment and equity in value companies is observed. Overall results revealed the importance of intellectual capital and the perceived value of the invest mentors and high correlation with performance listed companies on the Tehran Stock Exchange.