THE IMPACT OF INTELLECTUAL CAPITAL ON FINANCIAL PERFORMANCE IN INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS FIRMS

Intellectual capital has long been recognized as a critical and strategic resource for businesses, playing a central role in enhancing both operational efficiency and financial performance. This is especially evident in knowledge-intensive industries such as information technology and telecommunications, where human capital—the skills, experience, and creativity of employees—is often the most valuable asset. In these sectors, innovation, expertise, and the ability to adapt rapidly to technological changes are key competitive advantages. To explore the relationship between intellectual capital and financial performance, this study examined panel data spanning from 2016 to 2023 from 34 companies operating in the information technology and telecommunications sectors listed on the Vietnamese stock market. Using regression analysis with the Ordinary Least Squares (OLS) method, the study provides empirical evidence of a strong and statistically significant positive relationship between intellectual capital and financial performance. This relationship is particularly pronounced among firms that prepare consolidated financial statements, suggesting that a more comprehensive accounting of company activities may better capture the contributions of intellectual capital to financial outcomes. These findings underscore the importance for business managers and corporate leaders to recognize and invest in the development, management, and utilization of intellectual capital as a strategic asset. Doing so can lead to improved profitability, efficiency, and competitive positioning. Furthermore, the results have practical implications for policymakers and stakeholders who aim to foster sustainable growth in Vietnam’s rapidly evolving digital economy. By reinforcing the value of intellectual capital, this research contributes to the growing body of literature that highlights its vital role in business success. Ultimately, the study confirms that intellectual capital is not just a theoretical construct but a real, measurable driver of corporate financial performance in the modern, knowledge-based economy.