This paper examines whether Intellectual Capital (IC)
efficiency is associated with Earnings Quality (EQ) for Jordanian-listed firms. Using the value-added intellectual
coefficient and total accruals models to measure both IC and EQ, a positive and significant association was found between
IC efficiency and EQ. Also found were a significant positive relationship between
relational capital efficiency and EQ, a significant negative relationship between
structural capital efficiency and EQ, and no relationship between human capital
efficiency and EQ except in the real estate sector. Those results have
implications for the competitive advantage of firms over rivals, corporate
management decision-making, and the
performance of the Jordanian capital market.
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