The Intellectual Scorecard in the Egyptian Travel & Leisure Companies

Abstract

Due to the expansion of the knowledge and information technology economy, a new thought had been raised which is the strategic management accounting techniques for dealing with the intellectual capital. Intellectual capital is one of the most shadowy issues to be raised in relation to accounting for intangible assets. It is an innovative insight, among accountants and consultants where there is no settlement with respect to the exact way of measuring or managing intellectual capital in a firm. The balance scorecard is also, one of the most influential strategic management accounting techniques used for performance measurement of a business. The research propose the combination of both intellectual capital concept (IC) and the balanced scorecard technique (BSC) to deal with measuring, reporting and strategically managing the intellectual capital in the Travel & Leisure businesses listed in the Egyptian stock exchange market. The empirical study of the research based on exploratory study by analyzing secondary data for 13 Travel & Leisure firms annual reports listed in EGX 30 in the Egyptian exchange market. This is to proof the relation between existing of the intellectual capital (measured through difference between the market value and the book value of the company), IC disclosure in annual reports and the performance of the companies (measured through ROA and ROE). Furthermore, a questionnaire distributed to test the usefulness of ISC (Intellectual Scorecard) proposed model on enhancing performance the Travel & Leisure businesses listed in EGX30. The findings shed light on rationality of the intellectual scorecard model constructs in the Egyptian travel and leisure companies.