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The Impact of Intellectual Capital on Profitability, Market Value, Productivity, and Return on Equity: Empirical Evidence from Moroccan ICT Firms

Author

Listed:
  • Zakaria Nejjari

    (National School of Commerce and Management, Hassan 2 University)

  • Hanane Aamoum

    (National School of Commerce and Management, Hassan 2 University)

Abstract

The article aim is to look into the connection between intellectual capital published in annual statements and profitability, market value, productivity, and return on equity of firms registered on Casablanca Stock Exchange. The research is focused on a data panel gathered from statements over an 11-year period, from 2010 to 2020. There are 82 observations in sum. The variables that have a major influence on the four dependent variables were identified using multiple regression analysis. The research’s findings showed that variables like HCE, company size, and company leverage accurately foretold profitability. In addition, HCE had the greatest effects. Furthermore, CEE was discovered to be a considerable indicator of both ROE and productivity, with the size of the company being the only market value determinant. Overall, both of the firms had a higher HCE than SCE. This research may be viewed as a first in Morocco in terms of exploring the relationship between intellectual capital and profitability, market value, productivity, and return on equity. Moreover, previous research has yielded mixed results, necessitating additional research into the impact of IC on profitability, market value, productivity, and return on equity, especially in Morocco’s developing economy. The research enabled ICT firms to compare themselves to other firms in terms of intellectual capital efficiency and establish approaches to improve their performance.

Suggested Citation

  • Zakaria Nejjari & Hanane Aamoum, 2023. "The Impact of Intellectual Capital on Profitability, Market Value, Productivity, and Return on Equity: Empirical Evidence from Moroccan ICT Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1734-1748, June.
    • Handle: RePEc:spr:jknowl:v:14:y:2023:i:2:d:10.1007_s13132-022-00956-5
    DOI: 10.1007/s13132-022-00956-5
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    References listed on IDEAS

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    1. Nasif Ozkan & Sinan Cakan & Murad Kayacan, 2017. "Intellectual capital and financial performance: A study of the Turkish Banking Sector," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 17(3), pages 190-198, September.
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    3. Adel Beldi & Édouard Chastenet & Jean-Claude Dupuis & Mohamed Talfi, 2010. "Pertinence des méthodes d'évaluation financière des marques. Une étude empirique internationale," Revue française de gestion, Lavoisier, vol. 0(8), pages 153-168.
    4. Leena Afroz Mostofa Chowdhury & Tarek Rana & Mahmuda Akter & Mahfuzul Hoque, 2018. "Impact of intellectual capital on financial performance: evidence from the Bangladeshi textile sector," Journal of Accounting & Organizational Change, Emerald Group Publishing Limited, vol. 14(4), pages 429-454, November.
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    More about this item

    Keywords

    Intellectual capital; Profitability; Market value; Productivity; Return on equity;
    All these keywords.

    JEL classification:

    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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