Impact of intellectual capital on firm performance: a panel study of general insurance sector of Pakistan

Tania Nadeem, Shahid Obaid

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

The primary objective of this study is to assess the impact of intellectual capital on the financial performance of general insurance sector in Pakistan. This study examined the integrated influence of human, relational, and structural capitals on firm performance. Panel data of 14 general insurance companies listed in PSX is collected. Value added intelligent coefficient (VAIC) model has been adopted and analysed through static (2SLS, FE and RE) and dynamic panel regression (2 SYS GMM). Outcomes revealed the significant impact of lagged insurer’s financial position on ROA and value-added structural capital showed critical effect on ROA. However, the control variables have no relation with ROA. This study contributes to the existing literature on intellectual capital and opened ways for policymakers and managers regarding the proper utilisation of value-added structural capital. Future scholars can explore alternative IC models to incorporate new control variables to estimate more precise results.

Original languageEnglish (UK)
Pages (from-to)52-72
Number of pages21
JournalInternational Journal of Learning and Intellectual Capital
Volume22
Issue number1
DOIs
Publication statusPublished - 2025
Externally publishedYes

Keywords

  • human capital
  • insurance
  • intelligent coefficient
  • Pakistan Stock Exchange
  • performance
  • PSX
  • SCVA
  • VACE
  • VAHC
  • VAIC
  • value added capital employed
  • value added intelligent coefficient
  • value added structural capital
  • value-added human capital

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