The value of knowledge: Discovering hidden capital

The purpose of this research is to overcome the weaknesses intellectual capital (IC) estimation models, constructing and empirically verifying a new model that has same strengths as value-added coefficient (VAIC) but not its weaknesses. To better outline our analysis with respect many meanings can be evoked by term IC in literature, we also define term: “hidden capital” (HDC) balance sheet. First, analyze epistemological methodological aspects models existing highlighting their weak points. Subsequently, using logical-deductive methodology, build theoretical model, named “HDC”, discover capital”. Finally, proceed empirical verification HDC on sample over 1,800 listed European companies observed pre-pandemic period 2011–2019 (over 10,000 firm-year observations). through regression panel eight countries shows all variables are, unlike VAIC, significant directly correlated Tobin’s Q.