IDEAS home Printed from https://ideas.repec.org/a/jfr/afr111/v9y2020i4p44.html
   My bibliography  Save this article

The Impact of Intellectual Capital on Firms’ Performance: Evidence from Saudi Arabia

Author

Listed:
  • Afnan Alturiqi
  • Khamoussi Halioui

Abstract

The purpose of this study is to empirically investigate the relationship between intellectual capital (IC) measured by the value-added intellectual coefficient (VAIC) and firms’ performance (FP) in the Saudi context. Data are drawn from a sample of 25 Saudi firms listed on the Saudi Stock Exchange (Tadawul) for the period 2015-2018. Using the VAIC model, the multiple linear regression models were constructed to examine the relationship between intellectual capital (IC) and firms’ performance (measured in terms of financial and market performance). The findings indicate that there is a positive association between overall intellectual capital efficiency as well as each of its three components (human capital efficiency, structural capital efficiency, capital employed efficiency) and the firms’ financial performance. Additionally, there is a positive association between human capital efficiency(HCE), structural capital efficiency (SCE), and the firms’ market performance. Overall, the findings suggest that human capital efficiency (HCE) has a significant and positive impact on firms’ financial and market performance in Saudi Arabia. The VAIC method may be a useful tool for managers and investors in their decision process. This is the first study about the impact of intellectual capital on firms’ performance in four industry groups in Saudi Arabia using the VAIC model.

Suggested Citation

  • Afnan Alturiqi & Khamoussi Halioui, 2020. "The Impact of Intellectual Capital on Firms’ Performance: Evidence from Saudi Arabia," Accounting and Finance Research, Sciedu Press, vol. 9(4), pages 1-44, November.
    • Handle: RePEc:jfr:afr111:v:9:y:2020:i:4:p:44
    as

    Download full text from publisher

    File URL: https://www.sciedupress.com/journal/index.php/afr/article/download/19018/11924
    Download Restriction: no
    File URL: https://www.sciedupress.com/journal/index.php/afr/article/view/19018
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Aristides Isidoro Ferreira & Luís Fructuoso Martinez, 2011. "Intellectual capital: perceptions of productivity a and investment," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 15(2), pages 249-260.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Afnan Alturiqi, 2024. "The Impact of Intellectual Capital on Enterprise Performance in Saudi Arabia: Literature Review of Empirical Research," Accounting and Finance Research, Sciedu Press, vol. 13(3), pages 1-18, August.
    2. Jian Xu & Yue Shang & Weizhen Yu & Feng Liu, 2019. "Intellectual Capital, Technological Innovation and Firm Performance: Evidence from China’s Manufacturing Sector," Sustainability, MDPI, vol. 11(19), pages 1-16, September.
    3. Pearl Abredu & Cai Li & Frank Kofi Essien & Isaiah Agbenu Akanbi Adegoke, 2023. "Unleashing Potential: Overcoming Bottlenecks and Catalyzing Innovations in Intellectual Capital Intellectualization of Small and Medium-Sized Enterprises in Jiangsu During the Post-Industrial Era," SAGE Open, , vol. 13(4), pages 21582440231, December.
    4. Renata Peregrino de Brito & Lucia Barbosa de Oliveira, 2016. "The Relationship Between Human Resource Management and Organizational Performance," Brazilian Business Review, Fucape Business School, vol. 13(3), pages 90-110, May.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jfr:afr111:v:9:y:2020:i:4:p:44. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sciedu Press (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.