Forecasting of Financial Performance of Companies Considering Intellectual Capital

In the era of the knowledge economy, organizations have recognized that the intangible resources of a firm are more expected to contribute to the firm reaching and sustaining superior performance. Thus, intellectual capital (IC) management has been approved as the most important source to create value for a firm. The purpose of the paper is to create an empirical model for predicting the financial performance of a company based on intellectual capital, the required data is driven from the listed companies of the Vietnam Stock Market. VAIC™ is taken as a measurement of IC. Particular attention is focused on the impact of VAIC™ and its components on financial performance indicators. The model was built based on OLS Regression Model. The results of the current study have proved that intellectual capital has a positive impact on financial performance indicators based on ROA and Profit Margin, while the components of VAIC, CEE, and SCE are positively related to all the indicators of financial performance except PE.