Volume 5, 2017: Issue 2

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Title:

The measurement of intellectual capital by market capitalization method: Empirical study of Polish listed companies

Author(s):

Salome Svanadze, Ilia State University, Georgia

Magdalena Kowalewska, Warsaw University of Life Sciences, Poland

Abstract:

Intellectual capital has become a fundamental source for enterprises, but its measurement and reporting remain a major challenge for managers and researchers. The purpose of this paper is to examine and report the differences in the Intellectual Capital (IC) Market Value (MV) to Book Value (BV) of the Polish WIG 20 indexed companies from Warsaw Stock Exchange. The data necessary to perform the calculations in accordance with the MV/PV method came from the financial statements for the period 2010-2014 of 20 Polish companies. The MV/BV method provides the means to measure intellectual capital in a precise and timely calculation and is particularly useful for the companies that are listed on the stock market. Results are presented and followed by discussion and implication for future research.

Keywords:

Intellectual capital, market capitalization method (MV/BV), WIG20 companies

DOI:

https://doi.org/10.36965/OJAKM.2017.5(2)106-115

Type:

Research paper

Journal:

The Online Journal of Applied Knowledge Management (OJAKM), ISSN: 2325-4688

Publisher:

International Institute for Applied Knowledge Management (IIAKM)

Accepted:

20 May 2017

Pages:

106-115