Correlation Research Between Information Announcement Of Intellectual Capital And Stock Price

Intellectual capital (IC) is the rarest, the most creative and the most valuable resource for corporations in the 21st century. It will be essential for the companies to obtain sustainable profit and core competitiveness especially for these who are knowledge-intensive, and it will also play a critical role in deciding future cash flow and controlling operating risk. The present paper, based on the previous researches in intellectual capital, focuses on the effect of intellectual capital post announcement of annual report of the enterprises on the capital market. In this paper, in combination with standardization research and empirical research, it can be deduced that there is a positive correlation between the frequence of intellectual capital announcement and stock price of listed companies. In details, the frequence of human resources (HR) information announcement has a positive correlation with the stock price, but the connection capital announcement frequence does not. The results suggest that Chinese enterprises should pay more attention to the cultivation and management of intellectual resources and further strengthen connection capital currently, in order to promote the normal development of HR, structural capital, and connection capital. It also show that enterprises in China need to complete their IC announcement step by step. At last, this paper advises that China should establish its IC information announcement system to facilitate the IC-related activities.