• A
  • A
  • A
  • ABC
  • ABC
  • ABC
  • А
  • А
  • А
  • А
  • А
Regular version of the site

Educational Programme
Final Grade
Year of Graduation
Andrey Pupshev
Influence of Intellectual Capital on Financial Results of High-Tech Companies in Russia and the BRIC Countries
Strategic Corporate Finance
(Master’s programme)
Purpose ‒ The main purpose of this paper is to examine the non-linear influence of intellectual capital (IC) on financial performance of firms from IC-intensive industries in the BRIC countries. The additional one is to find out whether firm’s life-cycle stage important for the above-mentioned influence or not.

Design/methodology/approach ‒ The data include financial information of 318 firms from IC intensive industries (IT, Healthcare, Chemical and Telecom) form the BRIC countries, observed over 16-year period of 2000 to 2015. We used R&D exp. as IC proxy as it is the most appropriate option for high-tech companies. The panel data regressions were conducted using Almon Distributed Lag Model with GMM estimator and Newey-West standard errors.

Findings ‒ Results support the hypothesis about non-linear relationship between R&D exp. and firm’s performance. We found that R&D exp. has significant positive influence on firm’s performance after five years and this impact has reversed U-shape with optimal influence in the range of 14.0% to 14.8% of R&D intensity (R&D exp. to Sales ratio). The hypothesis about higher performance increase from IC at mature firms was also confirmed.

Research limitations ‒ The lack of observations with more than six lags of R&D expenses, the acute absence of balance in the sample in terms of firms’ countries are the main limitations of the study.

Practical implications ‒ Management of high-tech companies may use optimal R&D intensity and frontier of “overinvestment in IC” zone as tentative value in budget planning. Investors may use the findings on mature firms in investment planning.

Originality/value ‒ This study researches non-linear influence of IC on firm’s performance in the BRIC countries, which wasn’t researched before. In addition, it opens discussion of impact of company’s life-cycle stage on IC benefits for firm’s performance.

Keywords ‒ Intellectual capital, R&D, High-tech firms, BRIC.

Paper type ‒ Research paper.

Student Theses at HSE must be completed in accordance with the University Rules and regulations specified by each educational programme.

Summaries of all theses must be published and made freely available on the HSE website.

The full text of a thesis can be published in open access on the HSE website only if the authoring student (copyright holder) agrees, or, if the thesis was written by a team of students, if all the co-authors (copyright holders) agree. After a thesis is published on the HSE website, it obtains the status of an online publication.

Student theses are objects of copyright and their use is subject to limitations in accordance with the Russian Federation’s law on intellectual property.

In the event that a thesis is quoted or otherwise used, reference to the author’s name and the source of quotation is required.

Search all student theses