The Impact of Intellectual Capital on Corporate Performance: Evidence From the Egyptian Insurance Market

Abstract

This paper examines, using various econometric techniques, the impact of intellectual capital (IC) on the performance of Egyptian insurance companies listed between 2006 and 2011. We measure IC using the value added intellectual coefficient (VAIC) approach and its components developed by Pulic (2000), and both a direct and a moderating relationship between VAIC and corporate performance are investigated. Our results show a direct relationship between (IC-VAIC) and the performance of Egyptian insurance companies, particularly with capital employed efficiency (CEE), and to a lesser extent with human capital efficiency. In addition, a positive relationship between IC (capital employed and structural capital) and performance in the prior and current years is found. Evidence also suggests the possibility of a moderating relationship between IC and physical and financial capital, which in turn impacts on corporate performance. Our study also reveals the importance of taking into account any unobservable heterogeneity and endogeneity issues when analysing corporate performance.

Intellectual Capital and Corporate Performance: Evidence From Banking Industry of Bangladesh

“…It is noteworthy that, the positive relationship between corporate performance measures and VAIC found here corroborates with the findings of Antonio et al (2016), Latif and Nicholas (2016), and Sherif and Elsayed (2015). It indicates that companies with higher efficiency in intellectual capital contribute to a production of higher performance.…”

On the relationship between intellectual capital and financial performance: A panel data analysis on SME hotels

“…IC literature lacks studies in tourism industry, since the majority of the studies in the services industry have mainly focused on financial and insurance sectors (Alhassan and Asare, 2016;Curado, 2008;Isanzu, 2016;Joshi et al, 2013;Kamath, 2007;Meles et al, 2016;Mondal and Ghosh, 2012;Ousama and Fatima, 2015;Soriya and Narwal, 2015;Ting and Lean, 2009;Yalama and Coskun, 2007;Kweh et al, 2014;Sherif and Elsayed, 2016). According to Engström et al (2003), employees and organizational knowledge are the key elements for the success of hotels management, those authors concluded that the components of IC human capital and structural capital assure the service quality in hotels industry and are capitalized through the relationships established with key stakeholders (Rudez and Mihalic, 2007).…”

Knowledge-Based Bioeconomy: The Use of Intellectual Capital in Food Industry of Serbia

“…Although widely used for measuring efficiency of intellectual capital (much more often in the emerging markets than in the developed countries), it is also widely criticized (Andriessen, 2004;Urbanek, 2016). Using this method, the studies performed in Australia (Clarke, Seng, and Whiting, 2010) and Egypt (Sherif and Elsayed, 2015) demonstrated a direct and positive relationship between IC and organizational performance of the publicly listed companies.…”