Proposal for an intellectual capital report in the context of the impact of intellectual capital on the performance of information technology firm

Intellectual capital is defined as intangible assets and other invisible values in the financial statements of businesses and has become a critical factor for innovation and sustainable growth. The information technology (IT) sector, in particular, stands out as one of the areas where intellectual capital is most decisive due to its high knowledge intensity and dynamic structure that requires continuous innovation. In this context, this study aims to analyze the effects of intellectual capital on firm performance in IT firms operating in different countries, including innovation capital, and to propose a model for reporting intellectual capital. Within the scope of the study, financial data from 17 IT firms operating in different countries between 2010 and 2022 were used. The contribution of intellectual capital efficiency and its components to financial performance was measured using the Value-Added Intellectual Coefficient (VAIC) model, and panel data analysis was applied. According to the research findings, intellectual capital efficiency, innovation capital efficiency, and structural capital efficiency were identified as the most significant variables enhancing firms' financial performance. In contrast, the impact of physical capital efficiency on financial performance was found to be more limited. More detailed results revealed that an increase in intellectual capital components positively affects return on assets, return on equity, earnings per share, Tobin's Q ratio, asset turnover, and value-added. However, an increase in human capital efficiency and structural capital efficiency was observed to reduce Tobin's Q value. Based on the findings, a model proposal for intellectual capital reporting has been presented for firms operating in the IT sector.