Abstract:
The main objective of this paper is to examine the impact of Intellectual Capital on Financial sustainability and how the company can grow by this relationship. This research is explaining this role by measurable, descriptive and tested study as it built by pervious theories of knowledge management, finance and accounting. The measurements of intellectual capital which are the percentage of intellectual capital from total assets and the measurements of financial sustainability which are operating expenses ratio. Different measure have been used for financial sustainability as ROA, ROE, leverage, and firm size, as well as, the measures used for intellectual capital were Percentage of Intellectual capital from total assets and Total Investment on employees. Methodology of this research consists of a quantitative method as the data have been gathered from the financial statements of a 5 firms in Real Estate Sector Index listed in the Egyptian stock exchange. The results of our models which are simple regression and Pearson correlation models it is found that there is an insignificant negative relationship between variables which are Capital employed and human capital with Operating expenses and sales growth. There were some limitations that faced us as which is that the sample is considered to be small so data will not be generalized on the population as well as, it was difficult to get the measures of intangible assets in the financial statements of the companies.