Iranian company valuation of intellectual capital: Evidencefrom Tehran Stock Exchange TSE

Abstract: Konwledge, as a strategic advantage and a critical success factor (CSF), especially in knowledge societies, plays important roles in economics, business and managerial processes of modern and leading firms. Todays, it is well known that the higer the level of knowlege in a firm or in an industry, the higher the firm’s or the industry’s Intellectual Capital (IC) value. Since IC is a major part of firms total capital, most of the firms are very interested to measure their IC values. Two important questions in IC literature are 1)how a firm’s IC value can be measured? 1)are there meaningful relationshipes amonge firms and industries’ IC values with their share market prices? In this research, in order to answer the first question, we have proposed five simple calculation methods and calculated all Iranian firms’ and industries’ IC values based on each method. Also, to answer the second question, we have tested statistically our main research hypothesis that was a confirmation on existing meaningful relationships amonge firms and industries’ IC values with their shares market prices in the Tehran Stock Exchange (TSE). Results of empirical study, at the confidence level %95, clearly confirm existing such a meaningful relationship in the TSE.

Knowledge, Intellectual Capita (IC), Tehran Stock Exchange (TSE).