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The Impact Of Intellectual Capital On Corporate Performance: Evidence From The Egyptian Insurance Market

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  • MOHAMED SHERIF

    (School of Management and Languages, Heriot-Watt University, UK2Business School, Cairo University, Egypt)

  • MAHMOUD ELSAYED

    (Faculty of Commerce, Cairo University, Giza, Egypt)

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.

Suggested Citation

  • Mohamed Sherif & Mahmoud Elsayed, 2016. "The Impact Of Intellectual Capital On Corporate Performance: Evidence From The Egyptian Insurance Market," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-47, April.
    • Handle: RePEc:wsi:ijimxx:v:20:y:2016:i:03:n:s1363919616500341
    DOI: 10.1142/S1363919616500341
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    2. Md Nur Nabi & Qijie Gao & Md Takibur Rahman & Shaun O. Britton & Mohammad Muzahidul Islam, 2020. "Intellectual Capital and Corporate Performance: Evidence From Banking Industry of Bangladesh," International Journal of Human Resource Studies, Macrothink Institute, vol. 10(1), pages 234259-2342, December.
    3. Jelena Djordjevic Boljanovic & Gordana Dobrijevic & Slobodan Cerovic & Slavko Alcakovic & Filip Djokovic, 2018. "Knowledge-Based Bioeconomy: The Use of Intellectual Capital in Food Industry of Serbia," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 20(49), pages 717-717, August.

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