Abstract:
The study reviews the published literature concerning the theory, empirical analysis and evidence from previous research on Value Added Intellectual Capital and the firm value of Islamic financial institutions in Malaysia. Subsequently, this will look at the major components of Intellectual Capital and the impact of each component on the business performance. It will discuss the impact of the three major components of Intellectual Capital namely human capital, structural capital and relational capital towards the firm value of the Islamic financial institutions. The main contribution from this study is to enrich the discussion from the perspectives of literature discussion on the topic of Intellectual Capital measurement and evaluation. The literature reviews provides the evidence of the growing concern of Intellectual Capital in Malaysian organization about how much transformation has subsequently drive the organization’s firm value. Despite of this, evidence showed there is no standardization in Intellectual Capital measurement and evaluation in Malaysia. There is still inconsistency in Intellectual Capital reporting and Intellectual Capital’s management activities reporting. The literature reviews was also conducted with the aim of refining research methodology used in measuring and evaluating the transformation of Intellectual Capital in Malaysia.
