IMPACT OF INTELLECTUAL CAPITAL ON FINANCIAL PERFORMANCE AND INVESTMENT DECISIONS; EVIDENCE FROM NON-FINANCIAL SECTOR OF PAKISTAN

There are many models have been presented to determine the common facts of IC, like Tobin's Q, Skandia Navigator and Value Added Intellectual Coefficient (VAICTM) introduced by Australian researcher (Pulic, 2000). In this paper VAICTM calculation technique is applied to investigate the significance of the IC on financial performance and investment decisions of non-financial sector of Pakistan. Secondary data have been used in the unique study collected from the financial statements of 396 companies of non-financial sector in Pakistan. Data was collected from financial statements from 2006 to 2015 for this motive. The outcomes of the study express that the intellectual capital has meaningful association with financial performance and investment decisions.