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Intellectual capital (IC) is a significant resource for many companies. This paper explains what IC is, the benefits IC can generate, how a firm can utilize those benefits, the different roles a portfolio of IC assets can play, how firms can extract value from these portfolios, and the risks to a company that does not manage its intellectual property portfolio. The paper describes the steps for extracting value and outlines several ways to manage the firm’s IC assets. It discusses how a firm determines the three major elements of context and different procedures firms may opt to follow internally to realize their intellectual value. This paper also describes the ICM Gathering Group, the group of companies that have collectively created the knowledge the paper conveys. The paper explains how the Gathering has defined intellectual capital and how its member companies use their knowledge to the benefit of their respective organizations.

This paper seeks to estimate and analyze the relationship between intellectual capital and corporate conventional financial performance measures of Indian software and pharmaceutical companies for a period of five years from 2002 to 2006.

Annual reports, especially the profit and loss accounts and balance sheets of the selected companies for the relevant years have been used to obtain the data. International literatures on intellectual capital with specific reference to measurement tools and techniques have been reviewed. Value Added Intellectual Coefficient^TM (VAIC) method is applied for measuring the value based performance of the companies. Corporate conventional performance financial measures used in this analysis are: profitability; productivity; and market valuation. It is an empirical study using multiple regression analysis for the data analysis. The intellectual capital (human capital and structural capital) and physical capital of the arbitrarily selected companies have been analyzed and their impact on corporate performance has been measured using multiple regression technique.

The analysis indicates that the relationships between the performance of a company's intellectual capital and conventional performance indicators, namely, profitability, productivity and market valuation, are varied. The findings suggest that the performance of a company's intellectual capital can explain profitability but not productivity and market valuation in India.

The study has been conducted on a small sample of 80 companies belonging to the India software and pharmaceutical sectors. For a better understanding, a larger data set covering all prominent industry segments will be helpful.

Intellectual capital is an area of interest to numerous parties, e.g. shareholders, managers, policy makers, institutional investors. This paper throws some light on the new performance indicator, which Indian managers can use in order to evaluate the corporate performance and benchmark it with global standards. This is useful particularly in the context of the “knowledge economic” environment.

The paper represents a pioneering attempt to understand the implications of the business performance of the Indian software and pharmaceutical sectors from an intellectual resource perspective.

The aim of this study was to investigate whether the performance of a company’s intellectual capital can explain organisational performance. The dimensions of a company’s performance are (1) profitability, (2) productivity and (3) market valuation. Data were obtained from a sample of 65 companies that are listed on the JSE Securities Exchange (high knowledge‐base sectors). Findings from the empirical analysis indicate that the relationships between the performance of a company’s intellectual capital and (1) profitability, (2) productivity and (3) market valuation are informative but varied. The empirical findings suggest that the performance of a company’s intellectual capital can explain profitability and productivity, but not market valuation.

This chapter expands the existing literature by examining voluntary intellectual capital disclosure provided by listed Romanian companies in 2010 annual reports.

The chapter aims to determine the extent of intellectual capital disclosure within Romanian listed companies. Within this chapter we have conducted a content analysis using the annual reports of 71 companies listed on Bucharest Stock Exchange (BSE), main market (Bursa de Valori Bucure_ti – BVB). The intellectual capital framework developed by Sveiby in 1997 was used in our analysis and the frequency of disclosure was used as the measure of disclosure.

The results show that the key components of intellectual capital are relatively poorly reported by Romanian listed companies. The main areas of intellectual capital disclosure focus firstly on structural capital, then on relational capital and at the end on human capital.

The existence of information related to intellectual capital is used as the measure of the level of intellectual capital disclosure. Also, our exploratory investigation concerns only one fiscal year.

According to the authors’ knowledge the present chapter is a pioneering study developed at national level which highlights the intellectual capital disclosure practices of Romanian listed companies by examining their 2010 annual reports. The chapter highlights new insights of the level of intellectual capital disclosure within companies which operates in small capital market.

There is a dramatic increase in the number of companies whose value lies largely in their intangible assets; with relatively little or no value associated with their tangible assets. Traditional methods of valuation, based on accounting principles, where the value of the firm’s assets is a portion of the value, have systematically undervalued companies such as these. This article discusses the problem of valuing intangibles companies and suggests two approaches to determining their value. It also describes two common circumstances where company value is desired and discusses how value may be determined using a non‐traditional perspective on the company along with traditional methods for valuation. The two circumstances examined are the going‐concern value and the value under merger or acquisition circumstances (recognizing that these two circumstances produce very different valuations for the corporation).

The purpose of this paper is to study the influences of corporate governance on intellectual capital disclosures in chief executive officers’ (CEOs’) statements in annual reports.

Index score, word count and overall tone of CEOs’ intellectual capital disclosures are calculated to represent the extent, amount and tone of these disclosures, respectively. With a sample of 78 FTSE 100 companies, this paper uses content analysis and empirical analysis to examine the impacts of board size, board composition and shares concentration on the above three measures of CEOs’ intellectual capital disclosures, controlling for company size, profitability and leverage ratio.

Empirical results demonstrate a significant positive relationship between board composition and the extent, amount and tone of CEOs’ intellectual capital disclosures and a significant negative relationship between shares concentration and the amount of these disclosures.

This paper focuses on the impacts of corporate governance on CEOs’ intellectual capital disclosures. It also groundbreakingly measures the tone of CEOs’ disclosures.

The purpose of this research is to assess the visibility of intangible assets on the balance‐sheet of pharmaceutical companies. Further, how these assets overlap with intellectual capital and whether a relation can be established between intangible assets and company performance.

Intangible assets reporting practices of a group of 52 globally operating pharmaceutical companies are analysed. These assets are related to intellectual capital definitions and company performance.

Results indicate that the majority of companies are specifying intangible assets and that a considerable overlap occurs with intellectual capital. Intangible assets may constitute substantially to the companies' assets. However, clear relations of intangible assets with company performance could not be established.

Imperfections in the reporting of intangible assets are observed. These are the non‐uniformity of generally agreed accounting principles and practice around the world, the specification of goodwill and the position of R&D. A number of proposals are put forward to improve the visibility of intangible assets and to bring these in line with intellectual capital definitions.

The value of the paper can be found in the approach to fulfil the ideal of intellectual capital valuation through the more practical way of intangible asset specification on the balance‐sheet. For the group of companies studied, this paper assesses the situation in 2003 and the way ahead to further improvement.

This paper presents findings from an investigation of intellectual capital measurement, reporting and management in the South African mining industry. The research methodology employs a combination of content analysis of annual reports for the 20 largest listed companies in South Africa, combined with interviews with senior individuals in mining companies. Data is analysed in accordance with a selected intellectual capital framework consisting of 24 indicators across the three categories of internal, external and human capital. Results show that mining companies tend to report on fewer intellectual capital attributes than other companies and tend to focus more on external attributes such as business collaborations and favourable contracts. Results show that mining companies rate intellectual capital highly, but appear to be lacking in the measurement and reporting of intellectual capital. From these findings it is concluded that mining companies value intellectual capital but lack the appropriate systems and structures to manage intellectual capital meaningfully.

The purpose of this paper is to link empirically the value of intellectual capital and intellectual property to firm performance.

Survey data from managers in the (German) pharmaceutical industry is used to conduct a regression analysis focusing on the correlation between human, structural and relational capital, intellectual property and firm performance.

The results of the study show that including intellectual property in models linking intellectual capital to firm performance enhances the statistical validity of such models and their relevance for management.

Intellectual capital is an important source of an organization's economic wealth and is therefore to be taken into serious consideration when formulating the firm's strategy. This strategy formulation process can be enhanced by fully integrating intellectual property and intellectual capital into management models, as shown in this paper.

This empirical paper builds on and extends the Bontis research on the relationship between intellectual capital and firm performance. Contrary to Bontis the authors include intellectual property into the intellectual capital framework and focus on the role of intellectual property in the relationship between intellectual capital and firm performance.

With the emergence of the basis of intellectual capital, competitive advantage was considered as the focus of competitive strategies, and the knowledge resulting from this approach became the basis for the development and strategic directions of companies in various fields of the company such as finance and accounting. The purpose of this study is sustainable intellectual capital reporting framework and evaluation of key examples in the context of capital market companies.

The methodology of this study was exploratory from the point of view of the developmental result and based on the type of objective and qualitative and quantitative basis was used to collect the data. The statistical population in the qualitative part was university experts and in the quantitative part financial managers of capital market companies. Data collection tools were interviews in the qualitative part and fuzzy scales and language comparison checklists in the quantitative part. Therefore, first through three stages of coding, the dimensions of the model were identified, and based on the fuzzy Delphi analysis, the reliability level was determined through the average between the first round and the second round of Delphi. Finally, through the default tests, the appropriate fuzzy model was first determined, and then hierarchical fuzzy analysis based on TODIM's approach was used to determine the most favorable axis of sustainable intellectual capital reporting.

The results in the qualitative part indicate the existence of 3 categories and 6 components and 39 conceptual themes in the form of a six-dimensional model. In the quantitative part, the results showed that by confirming the dimensions identified through fuzzy Delphi analysis, the most desirable axis of intellectual capital reporting is the component of technological capital reporting, which can play a more effective role in sustainable reporting.

This study, relying on the importance of the consequences of sustainable intellectual capital reporting, tries to evaluate the consequences of this field of financial reporting due to the lack of a coherent theoretical framework about capital market companies. In addition, the framework presented in this study promotes integrated thinking for firms to it would provide some level of incentive to those charged with governance concerning the voluntary compliance with the sustainable intellectual capital reporting framework.