This is an era of knowledge economy. The association between market value and book value has also been strongly questioned. This study, therefore, carried out a discussion on intellectual capital (IC) of business to understand impacts from human capital, process capital, and customer capital on market value. Adopting the Residual Income Valuation Model of Ohlson (1995), the researchers of this study selected those listed banks between 2003 and 2010 in Taiwan as the subjects.For the association between IC and market value, the finding suggests that financial holding banks and independent banks should work on talent cultivation as well as improving human resource allocation. In addition, there is a significant difference between these two types of banks in the age of their employees and the number of branches. For value relevancy, empirical results indicate that IC elements provide significantly different value-relevant information to the gap between company market value and book value.
