Incidence of intellectual capital in the financial performance of chilean universities for the 2014-2018 period

Abstract

The purpose of this paper has been to investigate the relationship between intellectual capital (IC) and financial performance, based on two constructs, human capital (HC) and relational capital (RC), measured in financial terms. The methodology was applied to a sample of Universities of Chile. This was done at public and private universities during the 2014-2018 periods. In this investigation, we used descriptive statistics, level of correlation, and panel data analysis to demonstrate the existence of a positive relationship between each component of IC and the performance of universities, measured in terms of financial performance. The panel results confirm the hypothesis that HC and RC positively impact the university financial performance (return on equity, ROE, and return on assets, ROA). The article contributes to improving the conceptualization of Intellectual Capital and its relationship with the financial performance of Universities.