ItemArticle

Assessing the Impact of Intellectual Capital on Firms Profitability: Evidence from the Indian Information Technology Sector Using Dynamic Panel System GMM Approach

Title
Assessing the Impact of Intellectual Capital on Firms Profitability: Evidence from the Indian Information Technology Sector Using Dynamic Panel System GMM Approach
Creator
Gnanendra, M.; Mohanasundaram, T.; Das, Trina; Chaturvedi, Ankita; Vazirani, Kiran
Description
The present study focuses on how intellectual investment influences the financial success of companies in Indias rapidly evolving information technology (IT) sector. Using data from 158 IT companies between 2016 and 2023, the study uses dynamic panel estimation techniques. The modified value-added intellectual coefficient model is used to analyse the key performance proxies such as return on assets, net profit margin and return on net worth. The random effect model and fixed effect model are used to analyse the effects of relational and structural capital results, which exhibit weaker and ineffective impact, while capital employed efficiency and human capital efficiency are significant factors that affect firms profitability by using System GMM, which encountered endogeneity issues. In todays highly competitive and knowledge-driven IT sector, the findings highlight how crucial it is to nurture human talent and use resources efficiently. These insights can guide managers, investors and policymakers in making smart investments in intellectual capital that drive lasting value. 2025 MDI
Source
Vision;
Date
01-01-2025
Publisher
Sage Publications India Pvt. Ltd
Subject
Dynamic Panel Data; Financial Performance; Indian IT Firms; Intellectual Capital; System GMM
Coverage
Gnanendra M., Faculty of Management Studies, CMS Business School, JAIN (Deemed to Be University), Karnataka, Bengaluru, India; Mohanasundaram T., Department of Management Studies, Ramiah Institute of Technology, Karnataka, Bengaluru, India; Das T., Faculty of Management Studies, CMS Business School, JAIN (Deemed to Be University), Karnataka, Bengaluru, India; Chaturvedi A., Department of Commerce (Accounting and Taxation), IIS (Deemed University), Rajasthan, Jaipur, India; Vazirani K., School of Business and Management, Christ University, Karnataka, Bengaluru, India
Rights
Restricted Access; Hardcopy may be available in the library
Relation
ISSN: 9722629;
Format
online
Language
English
Type
Article

Citation

Gnanendra, M.; Mohanasundaram, T.; Das, Trina; Chaturvedi, Ankita; Vazirani, Kiran, “Assessing the Impact of Intellectual Capital on Firms Profitability: Evidence from the Indian Information Technology Sector Using Dynamic Panel System GMM Approach,” CHRIST (Deemed To Be University) Institutional Repository, accessed June 17, 2026, https://archives.christuniversity.in/items/show/23136.

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