• An empirical investigation of the[taliem.ir]

    An empirical investigation of the relationship between intellectual capital and firms’ market value and financial performance


    Purpose – The purpose of this article is to investigate empirically the relation between the value creation efficiency and firms’ market valuation and financial performance. Design/methodology/approach – Using data drawn from Taiwanese listed companies and Pulic’s Value Added Intellectual Coefficient (VAICe) as the  efficiency measure of capital employed and intellectual capital, the authors construct regression models to examine the relationship between corporate value creation efficiency and firms’ market-to-book value ratios, and explore the relation between intellectual capital and firms’ current as well as future financial performance. Findings – The results support the hypothesis that firms’ intellectual capital has a positive impact on market value and financial performance, and may be an indicator for future financial performance. In addition, the authors found investors may place different value on the three components of value creation efficiency  (physical capital, human capital, and structural capital). Finally, evidence is presented that R&D expenditure may capture additional information on structural capital and has a positive effect on firm value and  profitability. Originality/value – The results extend the understanding of the role of intellectual capital in creating corporate value and building sustainable advantages for companies in emerging economies, where different technological advancements may bring different implications for valuation of intellectual capital.

  • Value-Added Taxes and U.S. Trade Competitiveness.[taliem.ir]

    Value-Added Taxes and U.S. Trade Competitiveness


    This paper discusses the trade implications of value-added taxes (VATs) that refund domestic taxes paid by exporters of domestic production while imposing taxes on imports of foreign production. VATs are used by over 140 countries of the world, including every member of the OECD less the United States. Our  investigation of the implications of border-adjustable taxes on the U.S. trade balance suggests that VATs reduce trade volumes – both imports and exports – and that these impacts are stronger in extractive,  location-intensive sectors. We use panel data over 12 years, 29 industries, and 146 countries to conduct the analysis.