Research Gaps Indentified
The above mentioned studies were carried out on specific
sectors of Indian corporate but there is a research gap
regarding the overall index based corporate performance
of the companies. This research gap has necessitated
the researcher to check the corporate intellectual capital
performance in Indian corporate sector specially with regard
to return on equity and market valuation.
RESEARCh ObjECTIvES AND
METhODOLOGy
Objectives of the Study
The main objective of the present study is to investigate
the relationship of value added efficiency with market
valuation and profitability of the companies. Further to study
relationship of components of VAIC i.e. physical capital,
human capital and structural capital with market valuation
and profitability for a time period of ten years.
hypothesis of The Study
The following hypotheses are developed for achieving the
above mentioned objectives.
H01: There is no association between VAICTM and market to
book value of the Indian companies.
H02: There is no association between VAICTM and return on
equity of the Indian companies.
H03: There is no association between components of VAICTM
(i.e. CEE, HCE and SCE) and market to book value of the
Indian companies.
H04: There is no association between components of VAICTM
(i.e. CEE, HCE and SCE) and return on equity of the Indian
companies.
Data and Sample Selection
Two indices of National Stock Exchange (NSE) i.e. S&P
CNX Nifty and CNX Nifty Junior are taken as sample and
data is obtained from Centre for Monitoring Indian Economy
(CMIE) database called Prowess. A time period of ten years
is taken from 2000-01 to 2009-10.
As all the hundred companies are not listed for the last ten
years, so the data is minimized in the previous years. Those
companies whose key variables for the calculation of VAIC
are missing are excluded from the study. To have consistency
in the results outliers are also removed. So the final sample
consists of the ninety-four companies in the year 2009-10.
The above hypothesis is explained through a diagram as
follows
Figure 1.1