The relationship between intellectual capital and financial performance: a case study of Kurdistan Region of Iraq

Abstract

Intellectual capital is primarily based on knowledge and useful information. Intellectual capital plays a vital role in creating value through a combination of tangible and intangible assets to improve organizational performance. This study provides further insight into the role of IC in organizational performance, especially financial performance through a descriptive analysis of the questionnaire that have distributed among employees of Halabja Co. in Kurdistan Region of Iraq (KRG)/ Sulaimani city. Findings from this study indicate that the relationships between intellectual capital and financial performance is significant for achieving the company’s competitive advantages and maximizing profits. The findings suggest that the performance of a company’s intellectual capital can explain profitability and productivity.