Intellectual capital and capital structure: astudy of capital formation of financial performance

and firm value

Ind Var:
 Intellectual Capital:
 VA= Out-IN
 VACE = VA / CE
 VAHU = VA/ HC
 STVA = SC / VA
 VAIC = VACE+VAHU+STVA
1. Output = Total sales, revenue, total income
 Unconsolidated Profit and Loss Account – Total income
1- Input = Total Expense (operating exp+ interest expenses and other expenses)
 Unconsolidated Profit and Loss Account ---Total non-markup / interest expenses
2- Capital employed= total assets - current liabilities. (Funds available, Equity, net income)
 Total shareholder’s equity
3- Human capital: This is usually the personnel expenses or wages and salaries paid to
employees. Labor load
 Operating, administrative exp, Total compensation
4- Structural capita= VA-HC
 Capital Structure
 DER= (Total liabilities / Shareholder’s Equity)* 100

Dep Var:
1- Firm Value

 PBV= Price per share/Book value per share

 Book value per share= (Total assets – Total liabilities)/No. shares outstanding

Intervening Var:
 ROA= ( Net income/ Total assets)