The Impact of Intellectual Capital on the Financial Performance in Insurance Firms Listed in Amman Stock Exchange: Using the (VAIC) Model

Purpose: The aim of this study is to examine the impact of intellectual capital (human capital, structural capital, and employed capital) on the financial performance of listed insurance companies in the Amman Stock Exchange   Theoretical framework: Intellectual capital has become increasingly important in generating value for companies, and many researchers have linked it to corporate financial performance and strategic competitive advantage.   Design/methodology/approach: The study population consist of 21 insurance companies listed on the Amman Stock Exchange in Jordan during the period of 2011-2020. Intellectual capital was measured using the value added intellectual coefficient model (Pulic, 2000), and its impact on financial performance was analyzed using published financial statements of the insurance companies.   Findings:  The results of the study found a statistically significant positive effect of human and employed capital on financial performance as measured by the rate of return on assets and return on equity. Furthermore, the study revealed a significant positive effect of intellectual capital, specifically human capital, on financial performance measured by market value (Tobin's Q).   Research, Practical & Social implications: The study suggests that insurance companies should treat intellectual capital as a strategic resource and monitor and invest in it periodically for continuous development. The study suggests building a positive organizational culture that supports intellectual capital is recommended   Originality/value:  This study contributes to the understanding of the relationship between intellectual capital and financial performance for the first time in the insurance industry in Amman Stock Exchange. The findings highlight the importance of managing and investing in intellectual capital as a strategic resource to enhance financial performance