Intellectual capital and its role in avoiding financial distress for joint-stock industrial companies
DOI:
https://doi.org/10.36322/jksc.176(c).19679Keywords:
intellectual capital, financial distress, industrial companiesAbstract
The current study aims to test the role of intellectual capital indicators, human capital efficiency (HCE), structural capital efficiency (SCE), relational capital efficiency (RCE), and capital employed efficiency (CEE) as an independent variable in avoiding financial distress as a dependent variable. As the study adopted to measure intellectual capital the value-added model of modified intellectual capital (VAIC), while the study adopted to measure financial distress model (Z-Score) (Altman 1968).
The problem of the study was identified by a number of questions, the most important of which was the extent of the contribution of intellectual capital indicators in avoiding financial distress in the industrial joint-stock companies listed in the Iraq Stock Exchange? In order to achieve the objectives of the study and answer its questions, the study population represented by the shareholding industrial companies listed in the Iraq Stock Exchange, which numbered (25) industrial companies, was selected, and a sample consisting of (10) shareholding industrial companies whose data is available for the time period (2012-2021) was chosen. based on the data of the official website of the Iraqi Stock Exchange, and the correlation and influence hypotheses were tested using the statistical program (SPSS), and the data was analyzed according to the multiple regression method by adopting the (Eviews-10) program.
The study reached a set of conclusions, the most important of which is that intellectual capital is a strategic resource and an important source of competitive advantage in companies, and the companies surveyed are located in a gray area (stable but not safe from the risks of financial distress).
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