This study aims to examine the relationship between intellectual capital and corporate financial performance of Mobinil as an example of Egyptian telecom companies over sixteen years (from 1998 to 2013). The study identified three factors for intellectual capital as a first set of variables. They are structural capital, customer capital and human capital. Corporate financial performance variables represent the second set of the study which is earnings per share, earnings before interest, tax, depreciation and amortization (EBITDA) and revenue growth. To achieve the study’s objective, the study employs the Canonical correlation analysis as an appropriate statistical analysis. It analyses relationships between two sets of variables and maximises the correlation between linear composites of the intellectual capital and corporate performance variables. The findings of the study provide insights into the components of intellectual capital on an Egyptian Telecom Company and their influence on corporate financial performance. The Canonical correlation analysis provides evidence on a noteworthy relationship between intellectual capital, that is most influenced by customer capital and structural capital, and corporate financial performance that is most influenced by revenue growth and earnings per share. Furthermore, this relationship was largely captured by the first two functions in the Canonical model. In conclusion, the results suggest that both customer capital and structural capital have a significant impact on corporate financial performance when measured by earnings per share and revenue growth, in contrast, human capital has no significant impact on corporate financial performance. |
