The impact of intellectual capital on corporate performance: evidence from the Egyptian insurance market

Mohamed Sherif, Mahmoud Elsayed

Research output: Contribution to journalArticle

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.
LanguageEnglish
Article number1650034
Number of pages47
JournalInternational Journal of Innovation Management
Volume20
Issue number3
Early online date6 Nov 2015
DOIs
StatePublished - Apr 2016

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Intellectual capital
Human capital
Endogeneity

Keywords

  • Intellectual capital
  • financial performance
  • insurance companies
  • Egypt

Cite this

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The impact of intellectual capital on corporate performance : evidence from the Egyptian insurance market. / Sherif, Mohamed; Elsayed, Mahmoud.

In: International Journal of Innovation Management, Vol. 20, No. 3, 1650034, 04.2016.

Research output: Contribution to journalArticle

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