Intellectual capital efficiency and performance of Firms: evidence from nse 50 firms

In view of increasing contribution of intangibles in the value creation of firms, this paper tries to explore the relationship between the intellectual capital efficiency of firms with its financial and market performance. 50 large cap firms from NIFTY50 listed on National Stock exchange are selected for analysis for the year 2017–18. Multiple linear regressions is used for estimation. The empirical results indicate that profitability and productivity of these firms is strongly affected by the efficiency of intellectual capital whereas the sales of these firms are not at all influenced. It was also observed that the influence of intellectual capital is high in service sector than in manufacturing sector. The results of the study are important both for internal management and policy makers to measure and manage the intellectual capital of the firms for ensuring optimal performance.