The Impact of Intellectual Capital on Improving Financial Performance

Assist. Prof. Jamil Abdulkareem Abdullah¹ and Dr Abdulrazaq Kamal Nuri^{2
1, 2} University of Salahaddin. Erbil. Iraq
Email: jamil.abdullah@su.edu.krd, abdulrazaq.nuri@su.edu.krd
DOI: 10.23918/ICABEP2021p7

Abstract

This study aims to examine the impact of intellectual capital on improving financial performance. Bekhal and Eskan banks in Erbil city were selected as a sample of the study. Questionnaire were used as a tool to collect the study data. SPSS software was used to test the relationship between intellectual capital and financial performance.

The results of the study revealed that intellectual capital have a positive relationship with financial performance. Moreover, the results found that the three components of intellectual capital including human capital, structural capital, and relational capital have a significant relationship with financial performance. The results further showed that relational capital has obtained the highest effect on financial performance, while human capital has obtained the weakest effect on financial performance in the banks. Accordingly, manager banks should take care of intellectual capital in order to improve financial performance in the banking sector in Erbil city.

 Keywords: Intellectual Capital, Financial Performance.

ICABEP2021
International Conference on Accounting, Business, Economics and Politics

3rd joint conference organized by the collaboration of the Faculty of Administrative Sciences and Economics,
Tishk International University, College of Administration and Economics, Salahaddin University-Erbil, and
University of Szczecin, Poland.