Intellectual Capital, Financial Capital and Value Creation: Evidence from China 

Yan Jiang¹ , Ning Mao² (1. Nanjing University of Finance and Economics, China; 2. Nanjing University, China) 

Abstract: There is no doubt that financial capital is important for a corporation’s value creation. During the era of knowledge-based economy, intellectual capital is increasingly important for value creation. Based on trichotomies of intellectual capital, we take corporations of China as samples and build up four nesting models. The paper finds several results：(1) Financial capital is essential for performance and is the core among financial capital, human capital and performance. (2) Human capital influences corporate performance through the intermediary of relational capital and structural capital. (3) Intellectual capital is important to a corporation’s sustainable development. Corporations should pay more attention to the cultivation and accumulation of IC for its increased long-term strategic performance. 

Key words: intellectual capital; financial capital; performance; value creation; human capital; relationship capital

JEL codes: M12, M21, M40