Examining the Effect of Intellectual Capital Efficiency on Financial Performance in Indian Real Estate Industry Dr. Singh Raman Deep1, Dr. Kumar Vinod2 1Assistant Professor, Department of Commerce, Sri Venkateswara College, University of Delhi, Delhi, India. ramandeepjrf@gmail.com 2Assistant Professor, Department of Commerce, Sri Venkateswara College, University of Delhi, Delhi, India. drvinodtoor@gmail.com Online published on 21 August, 2017. Abstract The present study examines the effect of intellectual capital efficiency on profitability and market valuation in Indian real estate industry for a period of 10 years from 2006 to 2015 respectively. The Value Added Intellectual Coefficient (VAICTM) model has been employed for measuring the intellectual capital efficiency of the companies. For analyzing the relationship between the variables, correlation and panel regression has been used in the study. The results show that intellectual capital in real estate industry has a significant impact on profitability, but not on the market valuation of the companies. The study also evinced that human capital is found to have a significant relationship only with profitability; whereas structural capital, an important element of intellectual capital, is not having any significant contribution in increasing the financial performance of the companies. The results further revealed that physical capital is highly regarded in improving the profitability and market valuation of the companies. The finding clearly indicates that Indian investors at the time of investment decision give more importance to the financial disclosure of the companies. Top Keywords Intellectual capital, Human Capital Efficiency, Structural Capital Efficiency, Capital Employed Efficiency, Real Estate Industry, Profitability, Market valuation. Top |