Abstract:
It is no doubt that successful companies tend to be those that persistently renovate,
depend on new technologies and emphasizing on skills and knowledge of their
workforce. Knowledge being the new engine of financial institutions, High-tech
institutions as well as in the manufacturing companies in order to sharpen their
competitive edge. Not only by the knowledge base, but also value is generated by
the intangible assets. So the Intellectual Capital (IC) has become more and more
important to the companies. This study provides insight into the relationship between
IC and organizational performance as the main topic of the research. Population is
companies listed in Colombo Stock Exchange (CSE) under the Bank Finance and
Insurance sector. The selected sample is 30 companies and it is fifty four percent of
the sector. Research used data from the period of 2010 to 2014, using the Value
Added Intellectual Coefficient (VAIC) method as the evaluation system. The study
constructed three empirical research model based on economic performance,
financial performance and stock market performance to find out the company
performance. Through results of the study it can be concluded that economic
performance, financial performance and stock market performance are affected by
Intellectual Capital.
