Intangible investment and non-financial performance of Egyptian firms: the moderating role of the Covid-19 pandemic

Emad Sayed, Karim Mansour, Khaled Hussainey

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    Purpose - We examine the impact of intangible investment on non-financial performance. We also examine the moderating effect of the Covid-19 pandemic on this relationship.

    Design/methodology/approach - We extract data from annual reports for a sample of Egyptian firms from 2012 to 2020. We use the generalized method of moment (GMM) for testing research hypotheses.

    Findings - We find that (i) intangible investment positively affects non-financial performance, and (ii) the Covid-19 pandemic has weakened this positive effect.

    Originality/value - We provide new empirical evidence on the impact of intangible investment on different dimensions of non-financial performance. We offer the first empirical evidence on the moderating role of the Covid-19 pandemic on the relation between intangible investment and non-financial performance.

    Implications - Our analysis offers practical and social implications. It would help policymakers, regulators, and shareholders to realize the importance of the intangible investment, and also shed light on the consequences of the Covid-19 pandemic. Our analysis also offers managerial implications. It motivates managers to invest more in intangible investment as an important resource to increase customer satisfaction and loyalty, enhance internal operating performance, and improve learning and growth, which reflect in creating sustainable competitive advantage.

    Limitations - A small sample size is one of the limitations of this study. Furthermore, due to the lack of data in Egypt, the analysis does not include other measures of intangible investment. Finally, the sectoral analysis does not include all sectors due to the lack of observations in some sectors.
    Original languageEnglish
    Number of pages26
    JournalJournal of Financial Reporting and Accounting
    Early online date11 Apr 2022
    Publication statusEarly online - 11 Apr 2022


    • intangible investment
    • non-financial performance
    • COVID-19
    • Egypt


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