Relational Capital as a source of company’s value

Anna Bykova

Eugenia Kuminova

Main issues

Structure of the sample

Variables in the database

New factors for current research

Testing hypotheses

Sample

Companies with available information

Database

common data

financial data

performance

intellectual capital

additional data

Manufacture/engineering

28.10% of GDP (2011)

33,23% of the sample

Final sample

Engineering

130 non-traded companies

2004-2009 years

636 observations

Panel data

New variables

Associations+Subsidiaries (dummy)

Universities (dummy)

+ others

Descriptive statistics

Factor Observations Minimum Maximum Mean Median Std.Dev.

Age, years 462 1.00 120.00 29.00 20.50 24.00

Number of

employees462 276.00 14147.00 2411.00 1458.00 2495.00

Intangible

assets, mln

EUR

462 0.00 780.30 25.13 1.52 94.44

EVA, mln

EUR462 -2194.71 170.81 -10.37  3.84 129.41

Statistical significance of differences

   More

developed RCLess

developed RCResult 

Intangible assets, th

EUR

Observations 79 389(1.58)

Mean 36947.59 22389.44

EVA, th EUR

Observations 78 388(2.91)*

Mean 37358.55 27352.30

Statistical significance of differences

 More developed

RCLess developed

RC Result

Strategy

79 393

(20.54)***

Universities (0.34)Site quality (8.22)***Citations (6.96)***Foreign capital

(0.70)

Hypothesis 1

Universities-0.62**(-2.41)

McFadden R-squared

0.07

Age-0.01**(-2.04)

LR statistic 21.68503

Associations0.30*(1.61)

Prob(LR statistic)

0.001381

Subsidiaries0.78***(2.64)

Foreign capital0.35**(2.10)

Location0.01

(0.04)

C-1.78***(-5.75)

Number of observations

472

Dependent Variable: Intangible assetsMethod: ML - Binary Probit (Quadratic hill climbing)

Hypothesis 1

Universities9292.36*

(1.68)Adjusted R-

squared0.21

Cost of employees0.15***(7.55)

F-statistic 74.19965

Location-345.19(-0.07)

Prob(F-statistic) 0.000000

Age240.96***

(2.88)

Associations1517.04(0.29)

Subsidiaries-9610.62*

(-1.81)

Strategy-3761.86(-0.73)

Intangible assets 0.07***(3.26)

C7406.00(1.33)

Number of observations

454

Dependent Variable: EVAMethod: Panel Least Squares

Hypothesis 2

Age0.003(1.00)

McFadden R-squared

0.11

Cost of employees2.14E-06***

(3.53)LR statistic 46.51486

Citations0.58***(2.80)

Prob(LR statistic) 0.000000

Universities-0.04

(-0.19)

Foreign capital-0.05

(-0.34)

Location-0.25

(-1.22)

Strategy0.82***(4.79)

C--1.89***(-7.88)

Number of observations

464

Dependent Variable: Associations+Subsidiaries

Method: ML - Binary Probit (Quadratic hill climbing)  

Thanks for your attention!