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297014

The Impact of Intellectual Capital on Shareholders’ Wealth in Emerging Markets: Evidence from EGX

Article

Last updated: 24 Dec 2024

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Tags

إدارة الأعمال

Abstract

Since the third industrial revolution, there have been changes in the sources of value creation for both companies and shareholders, which led to changes in the characteristics of the business environment not at the local level but also at the international level, which included emerging markets. Changes in the business environment have become faster with the Fourth Industrial Revolution. The study proposes an intellectual capital (IC) framework for shareholders' wealth maximization in emerging markets. It measured intellectual capital, within five control variables. Those variables are corporate financial leverage, size, industry and dividend policy. But Shareholders' wealth (dependent variable) was measured according to the modified value added intellectual capital (MVAIC) model. The study found contribution of IC to shareholders' wealth maximization according to value creation, taking into account the characteristics of the corporation. Based on inferential analysis, this explains the change in shareholders' wealth at the Egyptian corporation. Human capital efficiency (HCE), structural capital efficiency (SCE), capital employed efficiency (CEE) under financial leverage (FL) and corporate size (CZ), affected (97.9%) of value creation for shareholders in Egyptian exchange. Thus, this study extends the IC concept to cost, growth, risk and profitability for corporation in emerging markets.

DOI

10.21608/jces.2023.297014

Keywords

Intellectual Capital, Shareholders’ Wealth, Value Added, Emerging Markets, Egypt

Authors

First Name

Osama

Last Name

Wagdi

MiddleName

-

Affiliation

Finance and Accounting Department; School of Business ; International Academy for Engineering & Media Science - IAEMS, Egypt. ORCID: 0000-0003-0451-9726; ResearcherID: D-4898-2019; Scopus Author ID: 57212470180

Email

osamawagdi_ta@yahoo.com

City

-

Orcid

0000-0003-0451-9726

First Name

Hatem

Last Name

Albanna

MiddleName

-

Affiliation

Finance Departments, Faculty of Management Sciences, October University for Modern Sciences and Arts –MSA, Egypt.

Email

hatemalbanna@hotmail.com

City

-

Orcid

-

Volume

14

Article Issue

1

Related Issue

41032

Issue Date

2023-01-01

Receive Date

2023-01-01

Publish Date

2023-01-01

Page Start

389

Page End

420

Print ISSN

2090-3782

Link

https://jces.journals.ekb.eg/article_297014.html

Detail API

https://jces.journals.ekb.eg/service?article_code=297014

Order

9

Type

المقالة الأصلية

Type Code

986

Publication Type

Journal

Publication Title

المجلة العلمية للدراسات التجارية والبيئية

Publication Link

https://jces.journals.ekb.eg/

MainTitle

The Impact of Intellectual Capital on Shareholders’ Wealth in Emerging Markets: Evidence from EGX

Details

Type

Article

Created At

24 Dec 2024