The Impact of Intellectual Capital on Financial Performance

Abstract

The current study is mainly targeting to examine the impact of intellectual capital on financial performance. Using a sample of 20 companies listed in EGX (70) were used from year 2016 to 2020. Descriptive analysis, correlational analysis and pooled data were used to test our hypothesis. The independent variable is intellectual capital which is classified into two types the Human capital efficiency and structural capital efficiency. Where the human capital efficiency is measured through dividing value added over human capital, structural capital efficiency which is measured through dividing structural capital over value added in addition to the dependent variable which is measured by both the return on assets ratio and the return on equity ratio. Finally, the results showed that there is insignificant relationship between Human Capital Efficiency and Structural Capital Efficiency with the ROA and ROE. Through our research we’ve faced many barriers such as not founding enough academic papers to support our results.