THE EFFECT OF INTELLECTUAL CAPITAL ON FINANCIAL PERFORMANCE AND SUSTAINABLE GROWTH OF THE CORPORATIONS LISTED ON THE MENA STOCK EXCHANGE MARKETS FOR THE PERIOD 2014-2021
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Date
2024-12-11
Authors
Ro’ya Nser Khader Abd El-Hafez
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Publisher
جامعة النجاح الوطنية
Abstract
This study investigates intellectual capital's (IC) impact on sustainable growth. The study used annual reports from 99 manufacturing companies over the period 2014-2021. IC is measured using the Modified Value Added Intellectual Coefficient (MVAIC) model, and sustainable growth is measured using the Sustainable Growth Rate (SGR). The researcher incorporated both fixed and random effect regressions to ensure a robust understanding of the underlying interactions.
The findings reveal that IC has an overall negative effect on sustainable growth. Among its components, only Capital Employed Efficiency (CEE) shows a significant negative impact on sustainability, suggesting that the way capital is utilized may hinder long-term growth. These results provide decision-makers with critical insights into the complex relationship between IC and sustainable growth. While intellectual capital is often viewed as a driver of performance, this study highlights the need for a more strategic and balanced approach to managing its components to avoid potential negative outcomes. However, the study has certain limitations, particularly the lack of a clear classification system for industrial companies listed on the Egyptian Stock Exchange, which includes 244 companies across 17 diverse sectors.