The impact of financial and non-financial capital on corporate market value: An empirical study on publicly-listed information technology service providers in the Philippines
Gone are the day that a market value is based solely on the bottom line of a company. Investors are now critical about other non-financial aspects of a company, such as quality and internal process management. This research will examine the relationship among financial capital, intellectual capital,...
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| Main Authors: | , , |
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| Format: | text |
| Language: | English |
| Published: |
Animo Repository
2007
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| Subjects: | |
| Online Access: | https://animorepository.dlsu.edu.ph/etd_bachelors/7533 |
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| Institution: | De La Salle University |
| Language: | English |
| Summary: | Gone are the day that a market value is based solely on the bottom line of a company. Investors are now critical about other non-financial aspects of a company, such as quality and internal process management. This research will examine the relationship among financial capital, intellectual capital, and corporate market value of publicly-listed service providers in the Philippines I.T. industry. The valuation approach of Price Model by Ohlson, and the Balanced Score Card by Norton and Kaplan were used as the frameworks for the research. The research subjects and periods are publicly-listed corporations in the Philippines I.T. industry from 2004 to 2006. Descriptive statistics and multiple regression statistical methods were employed using PhilStat, an add-on of Microsoft Excel. The result of this research indicates that the financial intellectual capital, taken as a whole, have a significant impact corporate market value. This research has derived the most optimal model of market value which is as follows: MV = (-0.98 *BV) + (47.68 * NI) + (-2.17 * CR) + (-52.01 * O1) + (170.44 * EE) + 0.00(+-0.01). This equation contains the variables of book value, net income, customer revenue, operating income and employee education. |
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