The main objective of this study is to examine the influence of intellectual capital (IC) on the financial performance of the Indian textile industry. The study employs the data of top 100 Indian textile companies for a period of ten years from 2009 to 2018. Value Added Intellectual Coefficient (VAICTM) methodology was mployed for measuring the efficiency of IC. The results revealed that the efficiency of IC has a significant and positive relationship only with the profitability of the Indian textile industry; while among the components of IC, capital employed efficiency (CEE) is the most significant in improving the financial performance. Moreover, human capital efficiency (HCE) only helps in augmenting the profitability while structural capital efficiency (SCE) shows an inconsequential effect on profitability and productivity of the Indian textile industry.

Author Name: Faizi Weqar and S.M. Imamul Haque

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Keywords: Financial Performance Intellectual Capital Productivity Profitability Textile Industry VAIC

ISSN: 2320-5407

EISSN: 2320-5407

EOI/DOI: 10.21474/IJAR01/10690

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