The Effect of Economic Value Added as An Indicator of Intellectual Capital on Some Indicators of Banking Financial Performance

Abstract

Technological and cognitive developments have played a major role in increasing the spirit of competition between banking and non-banking financial institutions to achieve their goals, which led them to search for tools with which to achieve those goals, and this resulted in reliance on intangible resources, which are intellectual capital. It includes the intellectual and cognitive innovations and creations, as well as the knowledge capabilities and experiences that the individual possesses that contribute to the maintenance and development of these institutions.The research concluded that there is a significant correlation of the added economic value with intellectual capital and financial performance, which led to the improvement of the banking financial performance further. While the research recommended the necessity of banks’ interest in providing accounting information to all users about intellectual capital in which relevance, reliability and symmetry is achieved, because of this positive impact on improving the level of financial performance in them, as well as the need to conduct more applied studies with which to measure the effectiveness of the economic value-added model. And its effects on intellectual capital as well as banking performance over a longer period of time and under other conditions and on a new sample.