The Impact of Intellectual Capital on the volatility of Economic Value Added in European Companies

<div>In the knowledge economy intellectual capital is seen as a strategic resource, on which depends the welfare of the whole company. Consequently, companies with a high level of intellectual capital should be more resistant to changes in market conditions. The study aims to test this hypothesis by measuring the length and depth of the recession economic added value of European companies, depending on the level of intellectual capital.</div><div>&nbsp;</div><div>Awareness of the importance of intellectual capital for the implementation of the company&#39;s strategy and sustainability confirmed both increasing the number of academic research, and increasing investment in such resources. Therefore, in the crisis years, financial performance of companies with a high level of intellectual capital is theoretically less susceptible to decay and are able to recover faster.</div><div>&nbsp;</div><div>The purpose of this study is to test the stability of the economic added value of European companies with a high level of intellectual capital to changing market conditions.</div><div>&nbsp;</div><div>As a criterion by which the results will be a comparison of observations sample was selected economic value added EVA. This indicator can be used as a proxy for the results of using intellectual capital. On its basis, the Sustainable Growth Index and the proposed by the author EVA&rsquo;s deviation were calculated. After which it was built stability matrix. The resulting matrix divided the sample &nbsp;into 4 parts, which allows us to apply in this study multinomial logistic regression.</div><div>&nbsp;</div><div>Еhe databased using in the study has been collected under the &quot;Features of the value of the company during the economic crisis: the role of intellectual resources&quot; implemented within the framework of &quot;Science Foundation HSE&quot; in 2013.</div><div>&nbsp;</div><div>As a result of the study revealed that indicators such as the presence of a corporate university, strategy, implementation of ERP-systems, focus on intellectual capital and knowledge management, participation in associations, have no significant impact on the volatility of the economic value added companies. Variables &quot;foreign capital&quot; and &quot;the location of the central office in the million city&quot; have a positive impact on the stability of companies.</div><div>&nbsp;</div>