Revue du Journal arabe des affaires et de la gestion

Corporate Financial Intelligence as a Driver of Organizational Performance: A Conceptual and Exploratory Review

Abstract

Osaretin Kayode Omoregie

While the concepts of financial intelligence (FI) and financial intelligence quotient (FIQ) as it pertains to the individual has been widely investigated and used by practitioners and academics, the operational definition and scope of these concepts have not been sufficiently rigorous. Neither have they been specifically applied to the organization, even though some researchers agree that financial intelligence could improve corporate performance. This paper proposes the concepts of corporate financial intelligence (CFI), measured by corporate financial intelligence quotient (CFIQ) as an organizational-wide practice for institutionalizing and improving corporate performance and shareholder value. This exploratory study argues for the development of a framework/model for defining corporate financial intelligence (CFI) and measuring corporate financial intelligence quotient (CFIQ), and to demonstrate their linkage to corporate performance and shareholder value. This study will present the opportunity for ongoing research into the relationship between corporate performance, shareholder value and the institutionalization of corporate (organizational) financial intelligence.