The Influence of Value-Added Intellectual Coefficient on Stock Returns and Performance; Evidence from Banks Listed on the PEX and ASE رسالة ماجستير

Abstract

Intellectual capital is a valuable strategic resource that plays a pivotal role in enhancing firm performance and attaining competitive advantage and innovation within the knowledge economy. Purpose: The study examines the effect of value-added intellectual coefficient on the total stock returns and performance of banks listed on ASE and PEX. Design/methodology/approach: The study sample comprised 21 banks that were listed on both the PEX and the ASE from 2009 to 2021. The study methodology involved evaluating the effectiveness of IC, as measured by the (VAICTM) model and its pillars, and on impact to total stock return and performance. Performance indicators such as EPS, ROE, ROA, and Tobin's Q, along with descriptive analysis, correlation analysis, and multiple regression to examine relationships between variables. Findings: The findings indicate a positive influence of intellectual capital (IC) on both the total stock return and performance of banks. Study limitations: Although the study utilizes the VAICTM, model in the banking sector, its inherent limitations may impact the accuracy and comprehensiveness of the findings. Therefore, it is crucial to interpret the results with caution. Originality/value: This study presents the first study of the intellectual relationship with banks performance in both Palestine and Jordan together.