The effect of intellectual capital on firm value and an econometric analysis

Globalizing world has lived in an age full of information with very rapid changes in communications sector and technological developments. The most important value elements of the era of industrial consisted of tangible assets such as capital, buildings, factories, machinery and equipment. As a result of new technological developments, changes in external environmental factors and the globalization of the competition definition are rapidly increasing importance of information. With the knowledge economy, in elements of value become transition from tangible assets to intangible assets. The knowledge-based intangible assets are defined as the intellectual assets and the form of intellectual assets converted into the value is expressed as the intellectual capital. In this study, the subject of intellectual capital is examined as a versatile. The study is composed of three main sections.This study aims to assess the effect of intellectual capital on the value of Turkish banks listed in Istanbul Stock Exchange (ISE). In this analysis, ?Value Added Intellectual Coefficient? method is used to calculate the values of intellectual capital of banks. The data of 11 banks for the period 2003 to 2010 are examined through the panel regression analysis. Also, the relations between activity of value added and the performance evaluation criteria size of operation, leverage and return on equity are examined.The results also prove that human capital efficiency has been more meaningful than structural capital efficiency with firm value. In this study, it is concluded that one of the basic variable affecting the value of banks has been become the human capital. In addition, the return on equity and growth in assets were determined that financial factors affecting the market value of banks.