Impact of corporate governance on corporate performance through intellectual capital

There has been an extensive research on the topic of corporate governance (CG) and its effect on corporate performance. On the other hand, research on intellectual capital (IC) is at its embryonic stage as researchers are still considering its proper definition, classification and measurement and its effect on corporate performance. This paper investigates the mediator role of intellectual capital performance on the link between corporate governance and corporate performance. The main focus is on the relationships of board of directors' characteristics and intellectual capital efficiency (measure of IC performance) with corporate performance. It is proposed that by adopting good CG measures, the corporate performance can be enhanced through IC efficiency.