http://www.iaeme.com/IJM/index.asp 1969 editor@iaeme.com
International Journal of Management (IJM)
Volume 11, Issue 8, August 2020, pp. 1969-1987, Article ID: IJM_11_08_174
Available online at http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=8
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: 10.34218/IJM.11.8.2020.174
© IAEME Publication Scopus Indexed
IMPACT OF INTELLECTUAL CAPITAL ON
FINANCIAL PERFORMANCE AND
INVESTMENT DECISIONS; EVIDENCE FROM
NON-FINANCIAL SECTOR OF PAKISTAN
Muhammad Asif Rashed Khan
MS Business Administration National University of Modern Languages,
Islamabad, Pakistan.
Muhammad Adnan Afzal
Lecturer, Department of Commerce Govt. College University,
Faisalabad, Pakistan.
Ashfaq Salamat
PhD Scholar, International Institute of Management & Technology Studies,
Central University of Nicaragua
Muhammad Kashif Khurshid*
Lecturer, National University of Modern Languages, Islamabad, Pakistan.
Shahnawaz Saqib
PhD Scholar, Department of Business Administration, GC University,
Faisalabad, Pakistan
*Corresponding Author
ABSTRACT
There are many models have been presented to determine the common facts of IC,
like Tobin’s Q, Skandia Navigator and Value Added Intellectual Coefficient (VAIC
TM
)
introduced by Australian researcher (Pulic, 2000). In this paper VAIC
TM
calculation
technique is applied to investigate the significance of the IC on financial performance
and investment decisions of non-financial sector of Pakistan. Secondary data have
been used in the unique study collected from the financial statements of 396
companies of non-financial sector in Pakistan. Data was collected from financial
statements from 2006 to 2015 for this motive. The outcomes of the study express that
the intellectual capital has meaningful association with financial performance and
investment decisions.