Professional success as a criterion for assessing efficiency of football clubs’ intellectual capital management /Professional success as a criterion for assessing efficiency of football clubs’ intellectual capital management

Abstract

In response to the latest realities and patterns of economic relations, intellectual capital confidently received the status of the fourth factor of production. Companies must maintain a high level of their intellectual capital management efficiency and its components to obtain and develop their competitive advantages. Since the vast majority of intellectual capital components do not meet the criteria for recognition of assets, current accounting system cannot reflect them in public financial statements. Therefore, for effective intellectual capital management purposes its assessment is carried out with a number of special methods. The aims of this paper are: 1) to establish how much you can rely on the assessment of intellectual capital efficiency, carried out by such Market Capitalization Methods as the Price-to-Book value (P/B ratio) and Tobin’s q, by comparing the obtained results with indicators of companies’ professional success; 2) determine the application prospects of particular methods of intellectual capital assessment, taking into account the level of their results reliability. For this purpose the TOP 50 UEFA Club Ranking was used and intellectual capital efficiency of football clubs was calculated for 2014–2018. The obtained results of intellectual capital efficiency assessment had not always correlated with the professional success rating. Therefore, the authors suggest using the Return on Assets Methods for assessment of companies’ intellectual capital efficiency.

Keywords

• intellectual capital
• tobin’s q
• p/b
• market capitalization methods
• professional success