The Contribution of Intellectual Capital to Firms' Sustainable Growth Ability: An Empirical Investigation Based on Listed Companies in China

摘要

The principal purpose of this article is to investigate empirically the relation between intellectual capital and Chinese firms’ sustainable growth ability. Using data drawn from a sample of 699 companies publicly traded on Chinese Stock Exchange from 2000 to 2006 and Pulic’s Value Added Intellectual Coefficient (VAIC) as the efficiency measure of intellectual capital, the author constructs two panel data models to examine the relationship between intellectual capital and Chinese firms’ sustainable growth ability. Findings indicate that both physical capital and intellectual capital contribute to firms’ sustainable growth ability positively. In addition, the empirical results show that human capital contributes to firms’ sustainable growth ability positively, but the relation between structural capital and firms’ sustainable growth ability is not distinct. Finally, Findings also show that most of Chinese firms’ use of liability is reasonable and there is still much room for most of Chinese firms to grow. The results extend the understanding of the role of intellectual capital in promoting firms’ sustainable growth ability in developing countries.