Moderating Effect of CEO Tenure on the Relationship between Intellectual Capital and Financial Performance

In recent years, intellectual capital has been considered as a key factor in determining financial performance. Intellectual capital can also affect the quality of the company's products and increase the company's profitability by increasing the company's market share. On the other hand, stable managers have a greater ability to invest more optimally in intellectual assets, which can improve the company's profitability. The main purpose of this study is to investigate the moderating effect of CEO tenure on the relationship between intellectual capital and financial performance in companies listed on the Tehran Stock Exchange. The statistical population of the present study, after applying some of the limitations in this study, consists of 140 companies listed on the Tehran Stock Exchange during the years 2013 to 2019. To test the research hypotheses, multiple linear regression model based on panel data has been used. The results of the research indicate that there is a positive and significant relationship between intellectual capital and company performance. In fact, in companies with more intellectual capital, the financial performance of the company has been higher. Findings showed that the term of office of the CEO had a positive effect on the relationship between intellectual capital and company performance. In other words, in companies whose CEOs have been more stable, the relationship between intellectual capital and company performance is strengthened.