Intellectual Capital and Stock Performance of US High-Tech Acquiring Firms

Abstract

This paper examines the impact of intellectual capital on the stock performance of US high-tech acquiring firms between 2010 and 2016. Intellectual capital is characterized as the knowledge that assists companies in creating value and enhancing profitability. The study finds that impacts of intellectual capital on stock performance around the announcement date and in the short run depend on the intellectual capital measure and the industry type. When the overall sample is considered, the VAIC measure indicates that intellectual capital is positively related to stock performance for the 3-year window around the announcement date, while the Tobin’s Q measure suggests a negative impact.