The Nexus between Intellectual capital and a company’s financial performance, evidence from Egypt | ||
| المجلة العلمية للدراسات التجارية والبيئية | ||
| Article 8, Volume 15, Issue 1, January 2024, Pages 363-405 PDF (686.48 K) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/jces.2024.356345 | ||
| Author | ||
| Alaa Kamel Hassan Khalifa* | ||
| Lecture of accounting at the Higher Institute for Computer & Information Technology El-Sherouk Academy | ||
| Abstract | ||
| The worth of a company's accumulated knowledge and resources that may be leveraged to produce income is referred to as intellectual capital. It is widely used to examine and classify a company's intangible assets, as well as to assess and anticipate their impact on financial performance. A company's human capital frequently shows how successfully management uses resources to help employees attain their full potential. Many scholars expected a favorable association between financial success and human capital. The term structural capital is the organization, technique, and innovation capital that supports a company's people and relationship capital. Relational capital refers to all of an organization's positive ties with consumers, vendors, associates, clients, and other external organizations. All three assets are contributing to the company’s performance and growth. This study aims to find the relationship between Intellectual capital and a company’s financial performance, in Egyptian companies, the study used secondary data from companies registered in the stock market as follows:- dependent variable: Financial performance:- measured by ROA, Independent variables (intellectual capital), human capital: measured by Staff wages, structural capital: measured by Revenue growth, relational capital: measured by Working capital turnover, using Multi coefficients test to analyze the data. The main findings of this study are: there is a significant positive relationship between human capital and structural capital from one side and the firm’s financial performance, and there is an insignificant relationship between relational capital and the firm’s financial performance. Recommendations are, that for more accuracy of financial accounts and to fully represent their true market values, companies should be forced to quantify and report their intellectual capital, future studies should investigate the relationships between intellectual capital, innovative ideas, and reputation, as well as the interplay between corporate governance traits and intellectual capital and adopting a well-defined plan for the growth of intellectual capital and its elements, as well as increasing dependence on intellectual capital as a major strategic asset through increased efforts and investments. | ||
| Keywords | ||
| Intellectual Capital; Financial performance; Egypt | ||
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