Measurement of intellectual capital in the process of company evaluation

Economic Annals-XXI: Volume 134, Issue 9-10(2), Pages: 18-21

Citation information:
Glotova, D. (2013). Measurement of intellectual capital in the process of company evaluation. Economic Annals-XXI, 9-10(2), 18-21. https://ea21journal.world/index.php/ea-v134-05/

Daria Glotova
Post-Graduate,
Donetsk National University of Economics and Trade named after M. Tugan-Baranovsky
31 Shchorsa St., Donetsk, 83050, Ukraine
glotovadasha@gmail.com

Measurement of intellectual capital in the process of company evaluation

Abstract. Introduction. The most effective instrument to make timely strategic and operational transformation of business system is the process of value-based management. However, to manage the value of an enterprise, you must first carry out its evaluation and determine its value. Knowing the value of businesses help in resolving such problems, as improving the efficiency of enterprise management, justification of investment decisions, business plans creation.

The purpose of the paper is to develop an approach to the evaluation of the company based on the measurement of intellectual capital. Methods. There are several approaches to the evaluation of the enterprise: market, cost and profitable. However, these approaches do not fully open up the fact that in today’s market enterprise value is determined by capitalization of its value, socio-economic importance, uniqueness, innovation and intellectualization of products and services.

Results. Therefore, it becomes necessary to develop an approach to evaluation which would open up the impact of intellectual capital on the value it creates. In general, the value of the company is proposed to calculate as the sum of both the value of the tangible assets and intellectual capital. The value of intellectual capital is proposed to asses as the sum of the values of intellectual potential and intellectual property. The greatest difficulty in determining the value by this method is calculating the value of the intellectual potential. It is proposed to determine it as the sum of both the value of the tangible assets and intellectual property, adjusted by a factor that reflects the probability of an intellectual product, which will increase the value of tangible and/or intangible assets, and the factor that shows how much can be increased the value of tangible and/or intangible assets due to the appearance of an intellectual product. Thus, the main problem solved in the research is the determination of these factors. The appearance of intellectual products is impossible without intellectual potential. The components of intellectual potential are to include knowledge, practical experience, personal development, personal and family relations, self-organized learning, personal qualities of the employee, company loyalty, self-motivation, team stability, corporate culture, communication system; management processes, operational processes, information technology, corporate memory company, established contacts and relationships. The probability that the employees of the company will create an intellectual product that will increase the value of tangible and/or intangible assets is determined as the combination of probability of independent events associated with the development of the intellectual potential components. The factor which shows how much the value can be increased by tangible and intangible assets due to the appearance of a new intellectual products is proposed to calculate by analyzing the past performance of a particular company, comparing the value of intellectual products, the appearance of which enabled the company to increase assets with the sum of tangible and intangible assets.

Conclusions. Thus, the developed approach to the evaluation of the company based on the measurement of its intellectual capital value will promptly lead to effective management decisions concerning the future development and influence the value of the company (decreasing or increasing it) by monitoring the performance of intellectual potential, which is the basis for the creation of company intellectual capital.

Keywords: Value; Enterprise; Evaluation; Intellectual Capital

JEL Classification: C65, G32

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Received 15.09.2013