Intellectual Capital-driven Factors And Information Disclosure

To increase overall value, business must start from strategy and form strategic ramifications of their own. After that, they need to transfer the mission to practical plan and take the sense of overall all employees to transfer plan to action. Above are the related issues of quality analysis. With regard to the effect of planning, business needs to use several kinds of evaluated tools to feedback the value of business. Above are related issues of quantity analysis. To increase business overall value, business need to strengthen their quality and quantity issue. This study from the view of quality and quantity point to form the ramifications of strategic and evaluation through business related theories and tracing the origins, then it infers that the new theories of business value are intellectual capital. Business needs to include intellectual capital to their publicized information and annual report to deliver fair and effective information to public. This study also infers that intellectual capital play the important role in business value.This study mainly discusses why there are differences between a business's market value and book value, and it helps investors to see through the relative value of a business's intellectual capital from the traditional financial statements and other publicized information. The research samples in this study include technology-intensive industry in 2003. After considering the measurability and representativeness of the variables, 14 intellectual and financial variables were selected to investigate the relationship between these variables and market price to book value (M/B ratio) by backward regression. The results indicate that in technology-intensive industry, the seven variables financial risk index, Average age, salaries to net sales ratio , Fixed Assets per Employee, percentage of main customer, Growth rate of net income have significant level with a company's M/B ratio.Finally, this study suggests that business of any field and industry can expertise above method to create and evaluate business value. Meanwhile business needs to make an adjustment when change of economic environment and accounting principle and stands. Business also can collect more completed information to make advance with this method when releasing more information in the future. Following above rules, businesscan produce fair report that can reflect real value of business in the near future.