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Investigating market value and intellectual capital for S&P 500

Jui‐Chi Wang (International Trade Department, Hsing‐Wu College, Taipei, Taiwan)

Journal of Intellectual Capital

ISSN: 1469-1930

Article publication date: 17 October 2008

3363

Abstract

Purpose

The purpose of this study is to examine and answer the following research questions: how does the US electronic industry perform from an intellectual capital (IC) perspective? What is the relationship between IC and company market value in the US electronic industry? This study investigated the relationship between IC and company market value in the US Standard & Poor's 500 (US S&P 500) publicly traded electronic companies from 1996 to 2005.

Design/methodology/approach

The Ohlson model theory was reviewed and to form the research models. Secondary data were retrieved from S&P's Compustat for quantitative analysis.

Findings

When applying multiple regression technique to the research hypotheses, there emerges a positive relationship between IC and market value of the company. Apparently, US electronic companies are knowledge intensive and utilize IC to create their market capitalization.

Originality/value

This is one of the first empirical researches that quantitatively examine the market value of US S&P's 500 electronic companies from IC perspective in the long‐term.

Keywords

Citation

Wang, J. (2008), "Investigating market value and intellectual capital for S&P 500", Journal of Intellectual Capital, Vol. 9 No. 4, pp. 546-563. https://doi.org/10.1108/14691930810913159

Publisher

:

Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited

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