Intellectual Capital and Value Creation in the Furniture Manufacturing Sector in Brazil

13 Pages Posted: 14 Nov 2009

See all articles by Herbert Kimura

Herbert Kimura

Mackenzie Presbiterian University

Leonardo Cruz Basso

Mackenzie Presbyterian University - Business Administration

João Francisco Aguiar

Mackenzie Presbyterian University

Date Written: November 13, 2009

Abstract

The study of intangible assets has been attracting growing attention of investors and companies in the last years, mainly due to its potential effect in the creation of value. This interest raises important questions regarding models to evaluate, assess and measure intangible assets and to link its impact on financial variables. In special, one aspect of intangibles seems to be most important in a knowledge-based economy: Intellectual capital. Although a unanimity about the definition of intellectual capital is yet to be reached, it seems that there is an agreement regarding its relevance for the companies. In this research, we investigate, through an analysis of panel data, the model proposed by Pulic (2000), which involves the human capital and the structural capital. Using data from 2000 to 2006 of the Brazilian Institute of Geography and Statistics that conducts the Annual Industrial Research, regression models were analyzed to verify the relationship between the efficiency in the use of the intellectual capital and profitability of the companies in Brazil. Using constructs defined by Public (2002) and considering a study of an unbalanced panel of 966 observations of the Furniture Manufacturing sector, the following hypotheses were tested: (i) there is a positive relationship between value creation and intellectual capital, (ii) there is a positive relationship between value creation and stock of intellectual capital, (iii) there is a positive relationship between value creation and efficiency of the employed capital , (iv) there is a positive relationship between value creation and efficiency of the human capital, (v) there is a positive relationship between value creation and efficiency of the structural capital. For the Brazilian sector of Furniture Manufacturing, the results suggest a positive and statistically significant relationship between flow and stock of intellectual capital in the creation of value, in static models based on minimum square errors.

Keywords: intellectual capital, value creation, panel data analysis, furniture manufacturing sector in Brazil

JEL Classification: C33, D21, D23, D46, I20, I21, I22, M20, M21

Suggested Citation

Kimura, Herbert and Cruz Basso, Leonardo and Aguiar, João Francisco, Intellectual Capital and Value Creation in the Furniture Manufacturing Sector in Brazil (November 13, 2009). Available at SSRN: https://ssrn.com/abstract=1505498 or http://dx.doi.org/10.2139/ssrn.1505498

Herbert Kimura

Mackenzie Presbiterian University ( email )

Rua da Consolacao, 896 - 6o andar
01302-907 Sao Paulo
Brazil
+55 11 3236-8589 (Phone)
+55 11 3236-8600 (Fax)

Leonardo Cruz Basso (Contact Author)

Mackenzie Presbyterian University - Business Administration ( email )

Rua da Consolacao, 896 7 - andar sala 73
01302-907 Sao Paulo
Brazil
+55 11 32368597 (Phone)
+55 11 32368600 (Fax)

João Francisco Aguiar

Mackenzie Presbyterian University ( email )

Rua da Consolação 920
São Paulo, 010302907
Brazil

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