The effect of intellectual capital on firm performance: an investigation of Iran insurance companies
Abstract
Purpose
The purpose of this paper is to analyze the role of intellectual capital (IC) and its relationship with financial performance of Iran insurance companies during the period 2005‐2007.
Design/methodology/approach
In total, 39 insurance companies were selected as the sample. Regression model (partial least squares) has been applied to examine the relationship between IC and companies' return on assets ratio (ROA).
Findings
The results of the research revealed that value added intellectual capital and its components have a significant positive relationship with companies' profitability.
Practical implications
The VAIC™ method could be an important means for many decision makers to integrate IC in their decision‐making process, which allows insurance companies to benchmark themselves according to the IC efficiencies and develop strategies to enhance their company's performance.
Originality/value
This is the first research, which has used the data on value added recently calculated and published by Iran insurance firms in the “Value Added Scoreboard”.
Keywords
Citation
Alipour, M. (2012), "The effect of intellectual capital on firm performance: an investigation of Iran insurance companies", Measuring Business Excellence, Vol. 16 No. 1, pp. 53-66. https://doi.org/10.1108/13683041211204671
Publisher
:Emerald Group Publishing Limited
Copyright © 2012, Emerald Group Publishing Limited