Impact of Intellectual Capital from Market Capitalization on Profitability in Financial Sector of Oman

Abstract

This study aims to demonstrate the impact of the intellectual capital from market capitalization on profitability in the financial sector listed in Muscat Security Market (MSM) of Oman for the period from 2009 to 2013 for 36 firms included in six sectors but the researcher taken only 32 firms because two banks in banking sector and two firms in insurance sector not have enough data for the period of study This study used market capitalization methods (MCM) to measure IC as independent variables on profitability. The results indicated a statistical significant impact of Tobin’s q and market to book value on profitability based on ROE and EPS. The multiple regression is indicated a statistical significant impact of all impendent variables on earnings per share only. The researcher recommends to strengthening the role of the intellectual capital in financial sector as an important indicator enhances productivity, efficiency and effectiveness also firms must evaluates the intellectual capital in several methods with best selection in line with the strategy of investing in the long term.

DOI: 10.5901/mjss.2015.v6n2p54