Readiness of Intellectual Capital Measurement: A Review of the Property Development and Investment Industry
Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 32926
Readiness of Intellectual Capital Measurement: A Review of the Property Development and Investment Industry

Authors: Edward C. W. Chan, Benny C. F. Cheung


In the knowledge economy, the financial indicator is not the unique instrument to gauge the performance of a company. The role of intellectual capital contributing to the company performance is increasing. To measure the company performance due to intellectual capital, the value-added intellectual capital (VAIC) model is adopted to measure the intellectual capital utilization efficiency of the subject companies. The purpose of this study is to review the readiness of measuring intellectual capital for the Hong Kong listed companies in the property development and property investment industry by using VAIC model. This study covers the financial reports from the representative Hong Kong listed property development companies and property investment companies in the period 2014-2019. The findings from this study indicated the industry is ready for IC measurement employing VAIC framework but not yet ready for using the extended VAIC model.

Keywords: Intellectual capital, intellectual capital measurement, property development, property investment, Skandia Navigator, VAIC.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 518


[1] AAStocks, “ Limited”. (accessed 10 June 2021).
[2] Al-Musali, M., & Ku Ismail, K., “Intellectual capital and its effect on financial performance of banks: Evidence from Saudi Arabia”, Procedia - Social and Behavioral Sciences, Vol. 164(2014), pp. 201-207, 2014.
[3] Ayse Elvan Bayraktaroglu, Fethi Calisir and Murat Baskak, “Intellectual Capital and Firm Performance: and Extended VAIC Model”, Journal of Intellectual Capital, Vol. 20 No. 3, pp. 406-425, 2019.
[4] Bontis, N., “National intellectual capital index: a United Nations initiative for the Arab region”, Journal of Intellectual Capital, Vol. 5 No. 1, pp. 13-39, 2004.
[5] Chan, K. H., “Impact of intellectual capital on organisational performance: an empirical study of companies in the Hang Seng Index (Part 1 & Part 2)”, The Learning Organization, Vol. 16 No. 1, pp. 4-39, 2009.
[6] Chang, S. L., Valuing intellectual capital and firms’ performance: modifying value added intellectual coefficient (VAIC) in Taiwan IT industry, Doctoral of Business Administration thesis, Ageno School of Business, Golden Gate University, San Francisco, CA, August 2007.
[7] Chen, M., Cheng, S. and Hwang, Y., “An empirical investigation of the relationship between intellectual capital and firms’ market value and financial performance”, Journal of Intellectual Capital, Vol. 6 No. 2, pp. 159-76, 2005.
[8] Chu, Samuel K. W. et al., “Charting intellectual capital performance of the gateway to China”, Journal of Intellectual Capital, Vol. 12 No.2, pp. 249-276, 2011.
[9] Dan C. Duran, Maria L. Gogan, Vasile Duran, “Innovation capital – A possible approach in evaluation the intangible assets”, Network Intelligence Studies, Romanian Foundation for Business Intelligence, Politehnica University Timisoara, Romania, 2014-12-01, Vol. II Issue 2(4), 2014, pp. 217-222, 2014.
[10] Edvinsson, L., “Developing intellectual capital at Skandia”, Long Range Planning, Vol. 30 No. 3, pp. 366-373, 1997. DOI:10.1016/s0024-6301(97)90248-x
[11] Ghosh, Shantanu Kumar and Maji, Santi Gopal, “Empirical validity of value added intellectual coefficient model in Indian knowledge-based sector”, Global Business Review, Vol. 16 No. 6, pp. 947-962, 2015.
[12] HKEX, Main Board Listing Rules, Hong Kong Exchanges and Clearing Limited. latest version at (accessed on January 2, 2021).
[13] HKEX, Main Board Listing Rules: Appendix 27 Environmental, Social and Governance Reporting Guide, Hong Kong Exchanges and Clearing Limited. latest version at (accessed on January 2, 2021).
[14] HKEX Fact Book, HKEX Fact Book 2018, Hong Kong Exchanges and Clearing Limited, 2018.
[15] HKEX Fact Book, HKEX Fact Book 2019, Hong Kong Exchanges and Clearing Limited, 2019.
[16] Joshi, M., Cahill, D., Sidhu, J., & Kansal, M., “Intellectual capital and financial performance: an evaluation of the Australian financial sector”, Journal of Intellectual Capital, Vol.14 No. 2, pp. 264 – 285, 2013.
[17] Maditinos, D., Chatzoudes, D., Tsairidis, C. and Theriou, G., “The impact of intellectual capital on firms’ market value and financial performance”, Journal of Intellectual Capital, Vol. 12 No. 1, pp. 132-151, 2011.
[18] Mehri, M., Umar, M. S., Saeidi, P., Hekmat, R. K., & Naslmosavi, S., “Intellectual Capital and Firm Performance of High Intangible Intensive Industries: Malaysia Evidence”, Asian Social Science, Vol. 9, No. 9, pp. 146-154, 2013. DOI:10.5539/ass.v9n9p146
[19] Mouritsen, J., Larsen, H. T. and Bukh, P. N. D., “Intellectual capital and the ‘capable firm’: narrating, visualising and numbering for managing knowledge”, Accounting, Organisation and Society, Vol. 26 (2001), pp. 735-762, 2001.
[20] Muhammad Ridhwan Ab. Aziz and Ahmad Azwan Meor Hashm, “Intellectual Capital (IC) Determinants: Impact on Productivity of Islamic Banks”, Binus Business Review, Vol. 8(3), November 2017, pp. 189-197, 2017.
[21] Nazari, J. A. and Herremans, I. M., “Extended VAIC model: measuring intellectual capital components”, Journal of Intellectual Capital, Vol. 8 No. 4, pp. 595-609, 2007.
[22] Pal, K., and Soriya, S., “IC performance of Indian pharmaceutical and textile industry”, Journal of Intellectual Capital, Vol. 13 No. 1, pp. 120-137, 2012.
[23] Pulic, A., “Measuring the performance of intellectual potential in the knowledge economy”, 2nd McMaster World Congress on Measuring and Managing Intellectual Capital, McMaster University, Hamilton, 1998.
[24] Pulic, A., “VAIC – an accounting tool for IC management”, International Journal of Technology Management, Vol. 20 Nos. 5/6/7/8, pp. 702-14, 2000.
[25] Pulic, A., “MVA and VAIC analysis of randomly selected companies from FTSE 250”, (accessed January 3, 2021).
[26] Shiu, H., “The application of the value added intellectual coefficient to measure corporate performance: evidence from technological firms”, International Journal of Management, Vol. 23 No. 2, pp. 356-65, 2006.
[27] Stewart, T. A., Intellectual capital: The wealth of organizations, New York, NY, Nicholas Brealey Publishing, Business Digest, 1997.
[28] Sveiby, K. E., “Method of measuring intangible assets”, (accessed August 9, 2020).
[29] Zeghal, D. and Maaloul, A., “Analysing value added as an indicator of intellectual capital and its consequences on company performance”, Journal of Intellectual Capital, Vol. 11 No. 1, pp. 39-60, 2010.