THE EFFECT OF INTELLECTUAL CAPITAL ON CORPORATE SUSTAINABILITY REPORTING AND CORPORATE PERFORMANCE: EVIDENCE FROM PALESTINE, AND JORDAN INDUSTRIAL LISTED COMPANIES
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Date
2024-10-09
Authors
Nadeen Ghanem
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Publisher
جامعة النجاح الوطنية
Abstract
The study aimed to explore the impact of intellectual capital efficiency (IC) on financial performance and corporate sustainability reporting (CSR) among industrial firms listed on the Palestine, and Amman Stock Exchanges. It also examines variations in these impacts across different markets. The research involved a sample of 44 industrial companies from the period 2017 to 2021. IC was assessed using the value-added intellectual capital model, while CSR disclosure levels was measured using a checklist based on the Global Reporting Initiative (GRI) standards. Financial performance was analyzed through return on assets, and earnings per share ratio.
The findings indicated that the CSR and financial performance of industrial companies in PEX, and ASE is positively influenced by IC.
The study recommends that businesses enhance practices for disclosing IC and invest in employee training and development. Such investments can bolster financial performance, enhance competitive advantage, and foster innovation. Moreover, adopting and adhering to global reporting standards, such as the GRI standard, is advised to improve the quality of sustainability reports and build investor and stakeholder confidence.