The Moderation Effect of Corporate Governance between the Intellectual Capital and the GCC Banking Industry’s Performance

Purpose:The aim of this study is to identify the moderation effect of corporate governance between the intellectual capital and the GCC banking industry’s Performance. Design/ Method/ Approach:The retrieved data spans from 2013 to 2019, based on a quarterly basis. As a result, the estimated total number of observations for each bank is 28, and the 58 listed banks have 1624 annual observations over the period 2013-2019. This equals four observations annually for six GCC countries over the seven years from 2013 to 2019, for a total of 168 observations in the panel data. Findings:The results indicated that all of the moderation effects of (board independence, board size, CEO duality, and ownership structure) and intellectual capital index indicate a non-significant impact on return on equity. The results indicate that all of the moderation effects of (board independence, board size, CEO duality, and ownership structure) and intellectual capital index indicate a non-significant impact on earnings per share. Recommendation:This study recommends that banks need to adopt the quality of governance practices represented in the independence of the members of the board of directors, the non-duplication of the role of the first executive director, the independence of the members of the audit committee, and the availability of financial and accounting expertise in its members; This has positive effects on improving the bank’s performance and maximizing its value.