Intellectual Capital Efficiency and Profitability: Evidence from Iraqi Firms

Abstract

This research seeks to examine the correlation between the Intellectual Capital efficiency (IC) and the profitability of Iraqi enterprises. The analysis will specifically concentrate on data collected from 20 non-financial firms throughout a designated time frame. The study utilizes content analysis and regression approaches to evaluate the influence of Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE), and Capital Employed Efficiency (CEE) on Return on Assets (ROA). The results indicate that both SCE and CEE have a considerable effect on ROA, however, HCE does not have a major effect. These findings enhance comprehension of the importance of IC (intellectual capital) in developing economies and provide practical assistance for Iraqi enterprises and policymakers.