Analyzing the Effects of Intellectual Capital on Market Value and Financial Performance of Companies in the Steel Industry

In today’s knowledge-based economy, intellectual capital is a major factor in sustaining competitive advantage of firms. The main purpose of this paper is to examine the impact of intellectual capital and its execution on market value and financial performance of active companies in the steel industry listed in the Tehran Stock Exchange. In this paper the Palick model has been used to measure intellectual capital performance. The time period studied is from 2007 till 2010 and 12 sample companies were chosen. The study has used the Regression Panel Data method (the least squares). The results achieved show that there is a significant relationship between intellectual capital with market value and the financial performance of active companies within the steel industry.