Intellectual Capital and Firm Value: An Investigation of Turkish Manufacturing Companies

This paper investigates whether intellectual capital and its components (human, relational, innovation, process capitals) have meaningful information on firm value. Full sample consists of 148 listed Turkish manufacturing firms over the period 2005–2017. We show that our extended Ohlson models explain substantial part unexplained variation in market values. Specifically, we find higher levels measures human capital, relational innovation overall are directly associated with stock prices. Furthermore, lagged effects values firms, has a moderating effect relationship between other Our main finding still holds when re-estimate model by addressing potential endogeneity issues alternative conditions. Based findings, recommend managers to do convenient resources planning these raise firm’s Moreover, accounting standards setters create separate financial reporting standard, which includes detailed value-relevant making business valuation decisions.