Relationship between corporate governance and intellectual capital: Evidence from Jordan

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The objective of this study is to examine the relationship between corporate governance and intellectual capital within Jordanian manufacturing firms. This study used a sample of Jordanian manufacturing firms and applied regression analysis to test the effects of board size, executive director duality, percentage of independent directors, and ownership concentration on intelligence capital performance. Thus, 64 Jordanian listed manufacturing firms represent the study sample for the study period (2014–2022). The study employs advanced statistical methods to evaluate how these governance mechanisms affect intellectual capital, including human, structural, and relational capital. The study results indicate that the board size and CEO duality had no significant impact on intellectual capital performance. A positive significant determinant is the firm performance measured by earnings per share with a coefficient estimate of 6.331 at p-value <0.0. The significant positive effect of firm performance on intellectual capital performance indicates that financial health is an important driver of intellectual capital utilization. Good firms are likely to have more resources to invest in human capital, technology, and innovation, which are necessary components of intellectual capital. Future research should continue to explore these dynamics across different contexts to inform more effective governance and management practices.

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    • Table 1. Descriptive statistics
    • Table 2. Pearson matrix
    • Table 3. Regression analysis: Model 1
    • Table 4. Regression analysis: Model 2
    • Table 5. Regression analysis: Model 3
    • Table 6. Autocorrelation
    • Table 7. Multicollinearity
    • Conceptualization
      Mohammad Fawzi Shubita
    • Data curation
      Mohammad Fawzi Shubita
    • Formal Analysis
      Mohammad Fawzi Shubita
    • Funding acquisition
      Mohammad Fawzi Shubita, Ahmed Dheyauldeen Salahaldin, Nahed Habis Alrawashedh, Mohammad Ahmad Alqam
    • Investigation
      Mohammad Fawzi Shubita, Nahed Habis Alrawashedh
    • Methodology
      Mohammad Fawzi Shubita
    • Resources
      Mohammad Fawzi Shubita, Ahmed Dheyauldeen Salahaldin, Mohammad Ahmad Alqam
    • Writing – original draft
      Mohammad Fawzi Shubita
    • Writing – review & editing
      Mohammad Fawzi Shubita, Ahmed Dheyauldeen Salahaldin, Nahed Habis Alrawashedh, Mohammad Ahmad Alqam
    • Supervision
      Ahmed Dheyauldeen Salahaldin, Nahed Habis Alrawashedh, Mohammad Ahmad Alqam