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Intellectual capital and profitability in European football clubs

Intellectual capital and profitability in European football clubs The scope of this study is to examine the impact of intellectual capital on the profitability of European listed football clubs which are characterised as a human intensive industry. Selecting a sample from nine European countries over the period 2005­2010, the paper incorporates panel data methodologies in order to examine the impact of intellectual capital (measured via the value added intellectual coefficient ­ VAIC) on the financial performance of listed football clubs. Evidence indicates a positive association between intellectual capital and profitability. Specifically, the human capital efficiency indicator presents the most significant association with profitability, suggesting that managers who spent more on their employees (players, technical staff, etc.) add higher value to the organisation which leads to enhanced financial performance. This study can provide the impetus for managers and regulators to consider the management and reporting of IC components on a regular basis as an additional tool for alleviating the immense financial problems of European football clubs. Keywords: value added intellectual coefficient; VAIC; financial performance; human capital; structural capital; European football. Reference to this paper should be made as follows: Dimitropoulos, P.E. and Koumanakos, E. (2015) `Intellectual capital and profitability in European football clubs', Int. J. Accounting, Auditing http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Accounting, Auditing and Performance Evaluation Inderscience Publishers

Intellectual capital and profitability in European football clubs

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Publisher
Inderscience Publishers
Copyright
Copyright © 2015 Inderscience Enterprises Ltd.
ISSN
1740-8008
eISSN
1740-8016
DOI
10.1504/IJAAPE.2015.068862
Publisher site
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Abstract

The scope of this study is to examine the impact of intellectual capital on the profitability of European listed football clubs which are characterised as a human intensive industry. Selecting a sample from nine European countries over the period 2005­2010, the paper incorporates panel data methodologies in order to examine the impact of intellectual capital (measured via the value added intellectual coefficient ­ VAIC) on the financial performance of listed football clubs. Evidence indicates a positive association between intellectual capital and profitability. Specifically, the human capital efficiency indicator presents the most significant association with profitability, suggesting that managers who spent more on their employees (players, technical staff, etc.) add higher value to the organisation which leads to enhanced financial performance. This study can provide the impetus for managers and regulators to consider the management and reporting of IC components on a regular basis as an additional tool for alleviating the immense financial problems of European football clubs. Keywords: value added intellectual coefficient; VAIC; financial performance; human capital; structural capital; European football. Reference to this paper should be made as follows: Dimitropoulos, P.E. and Koumanakos, E. (2015) `Intellectual capital and profitability in European football clubs', Int. J. Accounting, Auditing

Journal

International Journal of Accounting, Auditing and Performance Evaluation – Inderscience Publishers

Published: Jan 1, 2015

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