An Empirical Test of the Effect of Intangible Capital on Financial Performance and Market Value in the Jordanian Companies

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Dr. Abdelwahab Salameh Al Matarneh
Dr. Abdelwahab Salameh Al Matarneh
1 Accounting Department. Zarqa University a Jordan

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GJMBR Volume 14 Issue D2

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An Empirical Test of the Effect of Intangible Capital on Financial Performance and Market Value in the Jordanian Companies Banner
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The effect of Intangible capital on the financial performance of all the companies is still poorly defined Intangible capital for all companies in the third millennium can be considered as a competitive advantage. In the modern era, organisations make use of two distinct sources for value creation and profit which are tangible and intangible resources. The main objective of this research thesis is to explore the effect of intangible capital on the financial performance and market value of Jordanian companies. For this reason, we are going to carry out an empirical study drawn from 51 listed companies in Amman Stock Exchange from 2007 till 2012. Intangible capital has been given more attention among the companies of developed nations such as USA, Italy, Australia and others. The results were analysed by using Palic method. The results achieved show that there is a significant relationship between intangible capital with market value and the financial performance of all the active companies. Applicable results of this study suggest the importance of intangible capital in financial performance of companies.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Dr. Abdelwahab Salameh Al Matarneh. 2014. \u201cAn Empirical Test of the Effect of Intangible Capital on Financial Performance and Market Value in the Jordanian Companies\u201d. Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 14 (GJMBR Volume 14 Issue D2): .

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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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v1.2

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June 25, 2014

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English

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The effect of Intangible capital on the financial performance of all the companies is still poorly defined Intangible capital for all companies in the third millennium can be considered as a competitive advantage. In the modern era, organisations make use of two distinct sources for value creation and profit which are tangible and intangible resources. The main objective of this research thesis is to explore the effect of intangible capital on the financial performance and market value of Jordanian companies. For this reason, we are going to carry out an empirical study drawn from 51 listed companies in Amman Stock Exchange from 2007 till 2012. Intangible capital has been given more attention among the companies of developed nations such as USA, Italy, Australia and others. The results were analysed by using Palic method. The results achieved show that there is a significant relationship between intangible capital with market value and the financial performance of all the active companies. Applicable results of this study suggest the importance of intangible capital in financial performance of companies.

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An Empirical Test of the Effect of Intangible Capital on Financial Performance and Market Value in the Jordanian Companies

Dr. Abdelwahab Salameh Al Matarneh
Dr. Abdelwahab Salameh Al Matarneh Accounting Department. Zarqa University a Jordan

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