Investigating the impact of intellectual capital through VAIC model on the financial performance of IT firms in India

This study investigates the impact of intellectual capital (IC) on the financial performance of Indian IT firms. It also investigates the effects of each component of IC (human capital, structural capital, and financial capital) on company financial performance. The study used annual reports from IT companies spanning ten years, from 2013-2014 to 2022-2023. The researchers employed descriptive statistics, correlation, and multiple regression models to determine the influence and relationship between IC and financial performance. This analysis included a total of 221 firms. The findings revealed that the organisations are effectively employing their IC in value development. The empirical results demonstrated that capital employed efficiency improves corporate productivity as evaluated by ATO, whereas ROE and ROA are positively influenced by human capital efficiency. All of the performance indicators are unaffected by structural capital efficiency.