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International Journal of Management, IT and Engineering
Year : 2017, Volume : 7, Issue : 2
First page : ( 154) Last page : ( 166)
Online ISSN : 2249-0558.

An analysis of impact of intellectual capital on financial performance in Indian software firms

Godara Sunita

Assistant Professor, Department of Management, Chaudhary Ranbir Singh University, Jind (Haryana)

Online published on 12 May, 2017.

Abstract

Purpose

An analysis of impact of intellectual capital on financial performance in Indian software firms.

Design/Methodology/Approach

The study is based on assumption that intellectual capital is having a positive affects firm's financial performance and it is more perceptible in software sector. For the purpose, secondary data related to intellectual capital and financial performance has been collected for three years (From 2011 to 2014). The analysis has been done using Random Effect panel regression model.

Findings

The intellectual capital are positively associated with firm's financial returns.

Practical Implications

Positive association between intellectual capital and firm's financial performance in software sector point out the need to look at their intellectual capital in a more nuanced manner.

Originality/value

The determination of impact of intellectual capital on financial performance sector of Indian software industry has not been researched so far.

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Keywords

Intellectual capital, Knowledge management, Software sector.

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