The impacts of intellectual capital of China’s public pharmaceutical company on company’s performance

Zhang Xinyu

Abstract

This article introduces the study of public pharmaceutical companies between 2010 to 2012 to conclude the relationship between intellectual capital and firm performance, through Value Added to Invested Capital (VAIC) method of evaluating intellectual capital and factor analysis of firm’s overall performance score. The study finds out that both financial capital and human capital are positively correlated with firm performance while structure capital has no impacts on China’s medicine manufacturing. Human capital of Western medicine manufacturing has a more positive correlation with firm performance than that of Chinese medicine manufacturing, but structure capital has no correlation with performance.