Intellectual capital’s leverage on corporate market value

The first hypothesis proves that there is a correlation between intellectual capital and market value in Chinese capital market. The correlation is significant over the entire examined period. What this strong correlation further implies is that Chinese listed companypsilas perceived value, to a certain extent, in today knowledge economy, is related to the companypsilas intellectual capital. The second hypothesis has been proven to be correct. There is a correlation between IC Multiplier and intellectual capital. The results prove that the companies in information and technology industry do not have enough structural capital to exploit the value of its employeespsila. This is something we consider alarming since the knowledge intensity is increasing within the companies and in the whole economy of today. However, the IC Multiplier is not low in another three industries, but the structural capital still constrains the employees. We think the main reasons are human capital donpsilat leverage with structural capital effectively that creates the value. Organization capital and relation capitals of most Chinese listed companies are not suitable for the depositing and converting of the employeespsila knowledge, which constrains employeespsila value creation potential. Being short of the internal atmosphere which helps the knowledge to be communicated, converted and shared among the employees and within the company is another reason.