The Effect of Intangible Assets on the Amount of Economic Value Added (Case study: Tejarat bank branches located in management of west and central region in Tehran)

Abstract

In a society based on knowledge, the knowledge is an important part of the value of a product and makes up an important part of the wealth of a company. Given that, financial accounting only pay attention to measure of financial balance sheet and tangible assets, and the real value of the intangible assets (intellectual capital) is not paid and pointed to the key role of managers in the development of managerial decisions and Since the correct decision requires careful evaluation of the performance, which requires the application of appropriate criteria and indicators; so this study seeks to calculate the value of intangible assets in Tejarat Bank and examine the relationship between intangible capital and economic value added that is an acceptable index in measuring the performance. In the present study, 20 Tejarat Bank branches located in management of west and central region in Tehran, for a period of 5 years from the year 2008 to 2011 were selected as sample and counting financial balances, we estimate economic value added model of branches by multiple regressions. The results were as follows: intangible assets such as human capital and social capital in management of west and central region in Tehran has an impact on economic value added and the effectiveness of human capital is higher than social capital. Finally, some recommendations for the improvement of the organization's intangible assets that increase economic value added, is presented.