Financial leverage as a moderating variable on the impact of intellectual capital on financial performance: An applied study on financial companies listed on the Palestine Stock Exchange
DOI:
https://doi.org/10.35516/jjes.v12i2.3295Keywords:
Intellectual capital efficiency, financial leverage, financial performance, human capital efficiency, structural capital efficiency, physical capital efficiency, customer capital efficiencyAbstract
The study aimed to demonstrate the impact of investment in intellectual capital on the financial performance of financial companies listed on the Palestine Stock Exchange, also, to show the extent of the impact of financial leverage as a moderating variable on the relationship between intellectual capital efficiency and financial performance. The study was applied to a sample of (12) financial companies listed on the Palestine Stock Exchange during the period 2011-2022, to achieve the objectives of the study, multiple regression and hierarchical regression were used.
The results of the study showed that there is a statistically significant effect of intellectual capital efficiency (human capital efficiency, structural capital efficiency, physical capital efficiency, customer capital efficiency) on both the return on assets (ROA) and the return on equity (ROE). There is also an effect of the moderating variable (financial leverage) on the interaction between the independent variables related to intellectual capital and both return on equity and return on assets , the modified variable (financial leverage) was able to bring about a fundamental change in the relationship between the sub-variables of intellectual capital and return on equity and transform it into a statistically significant relationship.
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