Intellectual Capital and Financial Performance Indicators in Pharmaceutical Industry of Iran

In knowledge economy era, companies use two distinct resource bases to value and wealth creation: tangibles and intangibles or intellectual capitals (IC). In the other side, it is said that financial performance can be better explained and predicted by IC (divided into human and structural capitals) rather than physical capitals. With this assumption, current research studying on 22 pharmaceutical companies within 1383-7 time period found that efficient use of physical and intellectual capital has significant effect on profitability or return on assets (ROA). Also, human and structural capital efficiencies have negative and positive impacts respectively on productivity (cost to asset ratio) and return on equity. Finally, there is no empirical evidence for relationship between market value and IC, and it can be concluded that market of pharmaceutical industry in Iran continues to be only sensitive to physical capital rather than IC.