Abstract
Purpose: The purpose of the study is to examine the effect of intellectual capital (IC) on the financial performance through the mediating role of financial leverage. The data set of PSX 100 index is used from 2015 to 2022 of Pakistani firms. Design/Methodology/Approach: This study employs panel data and uses annual reports to collect the relevant data. Regression analysis and Stata is used for analysis.
 Findings: The outcomes of the study express that there is a significant and positive linkage between intellectual capital and the financial performance. Intellectual capital effects the financial performance both directly and indirectly with the mediating effect of the financial leverage. Due to the financial leverage mediation effect the organization need to have an optimal leverage to enhance the profitability and performance of the organization.
 Implications/Originality/Value: Theoretical and managerial implications has been discussed.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Sustainable Business and Society in Emerging Economies
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
