The accounting and financial reporting system in use today is over half a century old and has failed to capture the new knowledge and innovation economy in which intangible assets are becoming increasingly valuable. Yet, there has been a growing acknowledgment among the research community as to the relevance of intellectual capital as a major enhancer of an organization’s well-being. Much of the research provides great support how the IC is instrumental in determining profitability and stock performances.
This article is an attempt to examine intellectual capital impact on corporate performance of the IT sector in Morocco. The purpose of this study is twofold. Firstly, it attempts to verify empirically the influence of intellectual capital on firm performance. Secondly, we aim to analyze the effect of the corporate public listing over the period.
We have undertaken over a nineteen-year period, a longitudinal (2002–2020) case study of a prominent payment-solutions company based in a developing economy and generating 80% of its revenues from global operations in ninety countries.
The paper uses the Pulic framework, in its ameliorated version as modified by Ulum. The paper tests four elements of IC and company performance. For the sake of data analysis, the multiple linear regression with simultaneous entry method was used for this empirical study.
The findings show that: the company’s IC has a positive impact on the firm’s current and future profitability, IC is not a predictor of market performance. In addition, IC components yield a significant correlation for the performance of the high-tech company, the results indicate that physical capital is not a determinant of corporate financial performance.