Workshop held on 9 July 2013

In this workshop Yuliia Naidenova and Petr Parshakov made a presentation of their research results. The article is called “Intellectual Capital Investments: Evidence from Panel VAR Analysis” and its main aim is to analyze a dynamic relationship between IC components and economic profit, with a special emphasis on industry specific effects in pharmaceutical, retail, steel, telecommunications, and service sectors.

Authors noted, that the reason they have chosen this topic is the lack of researches in this sphere. Investments in intellectual capital (IC) are often linked to competitive advantages that improve economic profit and increase the value of a company. However, this effect can be reciprocal as well: Companies that generate higher cash flow can invest more in intellectual capital.

Panel vector autoregression (VAR) was used to deal with the mutual influence of intellectual capital components, the lag effect, and heterogeneity. The data was taken from Compustat database and covers the period from 2001 to 2010.

As a result, this research proves that there is interaction between investments in the IC components and company performance. However there are sectoral differences: there is a positive impact of economic profit on human capital in retail; in the steel industry a mutual influence is revealed. Moreover, interaction between different IC components is detected in telecommunication and steel industries.

Presentation  workshop_09_07.pdf