Title:
Intellectual
Capital Efficiency Level of Malaysian Financial Sector: Panel Data
analysis (2002-2006)
Abstract: Intellectual capital which
is
encompasses of human capital, structural capital and capital employed
has
been regarded as a prominent source of competitive advantage of various
organizations,
which influence the level of innovativeness and creativity that lead to
the
increase of business performance and a country’s economic growth.
Malaysia,
as a progressive developing Asian country, must now focus on knowledge
driven
economy in order to be competitive and capable to face various
challenges
that exist in the global market. Malaysian financial sectors in
particular,
need to anticipate and rapidly respond to these demands and
expectations
in order to maintain their competitive edge in the industry.
Therefore,
the aim of this study is to examine the efficiency level and the trend
of
intellectual capital among Malaysian financial sectors and its impact
on
their company’s value added. Using a model introduced by
Pulic
(1998) to measure value added intellectual Capital (VAICtm) and panel
data
analysis to measure the trend of intellectual capital; it was found
that
out of 18 companies evaluated from year 2002-2006, banking sectors
owning
more on intellectual capital followed by insurance company and
brokerage
firm. Company’s value added was very much related to the amount
of
capital employed as compared to other variables. The trend of
intellectual
capital shows positive relationship for almost all sectors. However the
relationships
was found insignificant.
Authors: Nik Maheran Nik Muhammad,
Nik
Rozhan Nik Ismail and Filzah Md Isa