The Relationship between Intellectual Capital and High-Tech Firms' Development Ability: Evidence from High-Tech Listed Companies in China

Abstract

The principal purpose of this article is to investigate empirically the relation between intellectual capital and high-tech firmspsila development ability. Using data drawn from a sample of 111 high-tech companies publicly traded on Shanghai and Shenzhen Stock Exchange from 2000 to 2006 and Pulicpsilas Value Added Intellectual Coefficient (VAIC) as the efficiency measure of intellectual capital, the author constructs two panel data models to examine the relationship between intellectual capital and Chinese high-tech firmspsila development ability. Findings indicate that intellectual capital contributes to high-tech firmspsila development ability positively, but the contribution of physical capital to high-tech firmspsila development ability is not distinct. In addition, the empirical results show that human capital and structural capital contribute to high-tech firmspsila development ability positively. Finally, the empirical results show that firmspsila scale contributes positively to high-tech firmspsila development ability. The results extend the understanding of the role of intellectual capital in promoting high-tech firmspsila development ability and creating sustainable advantages for high-tech firms in developing countries.