Censoring model for evaluating intellectual capital value drivers

• Published in: Journal of intellectual capital Vol. 9; no. 4; pp. 639 - 654
• Main Authors: Cheng, Meng-Yuh, Lin, Jer-Yan, Hsiao, Tzy-Yih, Lin, Thomas W.
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Group Publishing Limited 01.01.2008
• Subjects: Book value; Competition; Competitive advantage; Competitive intelligence; Corporate culture; Data processing; Design; Employees; Equity; Finance; Financial data processing; Financial statements; Health care; Human capital; Industrialized nations; Intangible assets; Intellectual capital; Knowledge; R&D; Research & development; Staff; Studies; Value creation; Intellectual capital; Financial data processing
• ISSN: 1469-1930; 1758-7468
• DOI: 10.1108/14691930810913195

Purpose - The purpose of this paper is to examine the relationship between firms' value drivers and their intellectual capital (IC).Design methodology approach - The health care sector (GICS 35) firms listed in the S&P500 were used to build a research censoring Tobit model by adopting financial data to determine value drivers.Findings - The results of the study show that innovation capital, customer capital and human capital are significant positive drive factors for firms to create more IC and hence more intangible value. Process capital exerts moderating effects on IC; organizations with greater process capital must raise customer capital to enhance intellectual value.Originality value - This is the first empirical study that uses a censoring Tobit model and tests of the association between competitive advantage and the value drivers of firms. This research successfully combines management perspectives with financial data to describe the value drivers of firms.