Impact of senior management’s financial intelligence on the financial performance of banks and insurance companies in the Gaza Strip

Abstract

Abstract Purpose This study investigates the impact of senior management’s financial intelligence on the financialperformance of banks and insurance companies operating in the Gaza Strip. Design The study followed the descriptive analytical approach to measure financial performance by relying on the financial reports of the sample companies for 2022. Two primary sources were employed: a questionnaire to collect the financial intelligence data, and it was distributed to a sample of individuals representing the management of companies operating in the Gaza Strip. A total of (67) completed questionnaires were obtained. In addition, secondary data from 11 banks and insurance companies operating in the Gaza Strip was collected to compute the financial performance variables such as returns on investment (ROI), assets (ROA), and equity (ROE). The collected data were then analyzed using SPSS software version 28. Findings The results indicated that the dimensions of financial intelligence were available. Banks and insurance companies have good financial performance. Furthermore, financial intelligence (understanding beyond the numbers, understanding financial analysis, and grasping the overall financial picture) significantly affected the performance of banks and insurance companies, as measured by ROI and ROA. The dimensions of financial intelligence (mastering financial and monetary skills, understanding financial analysis, and grasping the overall financial picture) also significantly impacted the performance of banks and insurance companies as measured by ROE. Simultaneously, there was no significant effect of financial intelligence (mastering financial and monetary skills) on the performance of banks and insurance companies as measured by ROI and ROA. Furthermore, there was no significant effect of financial intelligence (understanding beyond the numbers) on the performance of banks and insurance companies as measured by ROE. Originality To the best of the author’s knowledge, the current study is among the first research efforts in Palestine. Practical implications The findings indicate that senior management should pay greater attention to developing financial intelligence skills among employees in supervisory positions, especially those in the administrative, financial, and planning fields, due to their impact on improving companies’ performance.