Empirical Research on the Impact of Intellectual Capital as a Determinant of the Growth of Market Value of Companies
Empirical Research on the Impact of Intellectual Capital as a Determinant of the Growth of Market Value of Companies

Author(s): Ana Milijić, Andrija Popović, Nevenka Vojvodić-Miljković
Subject(s): Social Sciences, Economy
Published by: Udruženje ekonomista i menadžera Balkana
Summary/Abstract: The development of information and communication technologies and the creation of knowledge bases has resulted in a large number of incremental and radical innovations in various spheres. The condition for the survival of companies in the knowledge economy is to meet the increasingly sophisticated needs of consumers. In order for companies to follow this trend, it is necessary to constantly improve (innovate) their products and/or services and create added value for the consumer, which is a source of creating and maintaining a competitive advantage in the market. As innovations “repose” in the knowledge of individuals, companies invest a significant amount of fnancial resources in the education of their employees because they represent a part of the intellectual capital of the company. The subject of this paper is the analysis of the relationship between investment in R&D and market cap. The aim is to show how investing in research and development affects the market value of companies.

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