Determinants of Innovative Companies` Value

Nowadays there is a growing interest in innovation and innovative companies in many realms of science and business. One of the reasons for such interest lies in the significant difference between the book and the market value of innovative companies’ capital. This paper contributes to the field of knowledge about features of innovative companies and attempts to explain possible reasons for the differences between the market and book value of its shares. The following study is focused on exploring the possible terms between intellectual capital and market capitalization of an innovative company. The author analyzes the features of the innovative companies’ work and suggests an original methodology for determining the size of company’s intellectual capital. The empirical study uses a regression analysis of panel data using proxy variables based on a sample of financial data for 21 public innovation companies that were quoted on the US stock market between 2006 and 2016. The obtained results show that there was a significant linear and non-linear influence of intellectual capital on market value for American public innovative companies in the period from 2006 to 2016 and also gives reasons to surmise that there is an opportunity to maximize the influence of intellectual capital on company’s capitalization.