Abstract

The effect of Intangible capital on the financial performance of all the companies is still poorly defined Intangible capital for all companies in the third millennium can be considered as a competitive advantage. In the modern era, organisations make use of two distinct sources for value creation and profit which are tangible and intangible resources. The main objective of this research thesis is to explore the effect of intangible capital on the financial performance and market value of Jordanian companies. For this reason, we are going to carry out an empirical study drawn from 51 listed companies in Amman Stock Exchange from 2007 till 2012. Intangible capital has been given more attention among the companies of developed nations such as USA, Italy, Australia and others. The results were analysed by using Palic method. The results achieved show that there is a significant relationship between intangible capital with market value and the financial performance of all the active companies. Applicable results of this study suggest the importance of intangible capital in financial performance of companies.