Finance Dissertation Capital Performance VAIC Model

Financial Accounting has provided the basis to keep a track of all monetary transactions of a business, and provides data to value the assets of the company. However, there are some assets which are tough to realize in monetary terms and we ignore them in valuation. Intellectual capital is one of those intangible assets which are not accounted for while forming the balance sheet of the company. In banking business, where the quality and caliber of human resources, relationship with business and other capital assets mark the success of the firm, intellectual capital measurement is highly required.
The dissertation aims to compare the intellectual capital performance of Singapore banks with that of the foreign banks operating in the country. The measurement has been done by using the Value Added Intellectual Capital (VAIC) model propounded by Australian research Ante Pulic. The paper further justifies the use of this model and the readiness of Singapore economy to undertake such measure. Further, the performance indicators have been established after studying the existing literature in this respect. The research makes use of both secondary and primary data and the research objectives are drawn which are tested by formulating relevant hypotheses. Finally, scope for further research, limitations of the research and necessary recommendations and final conclusion is drawn. The research is undertaken after establishing some objectives, which guides towards the path of the methodology and overall research. The main objectives of the research identified are given as under:

  • To compare the profitability of 26 banks in Singapore and determine the intellectual capital performance correlation between them
  • To identify various key performance measurement indicators of Intellectual Capital Performance and justification for the use of VAIC model
  • To ascertain the readiness of Singapore banking industries to adopt VAIC model for Intellectual Capital Performance measurement
  • To identify the most important component of intellectual capital out of human capital, relational capital and structural capital, for an organization and propose the model for its performance measurement