ON THE RELATIONSHIP BETWEEN MODIFIED VAIC, TOBIN Q AND RATES OF RETURN: A CASE OF BIST-100 WHOLESALE&RETAIL INDUSTRY

Abstract

It aims to study the correlations between intellectual capital components, Tobin Q and financial
performance indicators of firms in the BIST-100 Wholesale and Retail sector. The research is
designed as an effort to understand how intellectual capital conduces to the competitive advantages
and value creation capacities of firms. For this purpose, Modified Value Added Intellectual
Coefficient (MVAIC) was used to represent intellectual capital and return rates (ROA, RONA,
ROE and ROI) to represent financial performance. The findings show that, apart from ROE,
intellectual capital is a noteworthy source of value creation for companies in this sector and
positively affects their financial performance. The scope of the study includes correlation and
regression analyzes on the 10-year financial statements of the relevant sector between 2013 and
2022. This study highlights that businesses should consider intellectual capital management as a
strategic priority.