1 Introduction

Managers must possess financial intelligence to gain a deep understanding of surrounding environmental factors to make an organization smart; consequently, they become more capable of managing the organization under their leadership in a turbulent and competitive world [17]. Financial intelligence involves examining economic data from a perspective that differs from the traditional view. It goes beyond the issue of the numbers in financial reports being merely financial figures; instead, it includes a set of financial dimensions and skills that enable the financial decision-maker to make the best financing and investment decisions [28].

Financial performance reflects the company’s financial results in terms of reputation and represents a measure of its ability to achieve financial returns, and it is evidence of the company’s success and ability to continue and achieve its goals. Furthermore, it represents an institution’s ability to fulfill its obligations. Institutions that fail to perform adequately expose the existence of financial performance and continuity to risk [10]; performance expresses “the extent to which an institution can optimally use its short-term or long-term financial resources to create wealth.”

Therefore, administrations must possess financial intelligence skills for institutions to succeed, enabling them to effectively manage these companies in a manner that leads to their sustainability, growth, and development, thereby enhancing employees’ knowledge and motivating them to raise the efficiency of financial performance. Thus, this study identifies the impact of senior management’s financial intelligence on the financial performance of prominent companies operating in the Gaza Strip.

Large companies in the Gaza Strip are integral to Palestine’s overall economy. Therefore, maintaining and improving good financial performance within an environment characterized by extreme volatility and rapid changes requires high-level skills among senior management teams. This situation underscores the importance of applying financial intelligence, considered one of the most contemporary concepts in financial management.

Previous studies have addressed the topic of financial intelligence and its impact on financial performance. For instance, [17] demonstrated that managers using financial intelligence help make their organizations smarter, more successful, and advanced. Furthermore, [36] indicated that managers had limited experience in understanding simple financial records, as they believed that financial reports were not crucial and their sole concern was profitmaking. Moreover, [4] highlighted the increasing need to develop financial intelligence skills in the financial environment. Within the Palestinian financial sector, there is a lack of research studies addressing this topic.

Therefore, this study first investigates the impact of implementing financial intelligence by senior management on the financial performance of banks and insurance companies operating in the Gaza Strip. Furthermore, it determines the impact of senior management’s financial intelligence on the financial performance of banks and insurance companies in the Gaza sector as measured by return on investment (ROI), return on equity (ROE), and return on assets (ROA).

This study contributes novel scholarly content to enrich the Palestinian academic literature, benefiting researchers and stakeholders interested in this field, particularly given financial intelligence’s role in enabling senior management to sufficiently understand performance measurement, achieve success, and enhance overall performance. Consequently, it is anticipated that this study will contribute to improving and developing the financial performance of banks and insurance companies operating in the Gaza Strip.

The remainder of this article is organized as follows. Section 2 provides a brief overview of the existing literature, while Sect. 3 outlines the methodology, including the study tool. The data analysis with the test of the hypotheses is presented in Sect. 4, and the final section concludes by summarizing the key results and providing some recommendations.

2 Literature review

Probing into financial intelligence has revealed several scientific studies that have examined financial intelligence and performance independently or concerning each other. For instance, [28] found that financial intelligence provides a valuable perspective on financial data, focusing on long-term asset investment. In addition, strategic financial intelligence is the basis for building a strong organization capable of achieving success, giving organizations an advantage in facing increasing competitive pressures [1].

Shiyyab et al. [32] indicated that AI-related keywords and artificial intelligence disclosure influence banks’ financial performance. AI has a positive effect on accounting performance in terms of ROA and ROE and a negative impact on total expenses, which supports the dominant view that AI improves revenue and reduces cost.

Talalweh and Alkhatib [35] found a significant effect of the characteristics of the board of directors of Palestinian banks on their financial performance measured by the ROA index, in addition to that, the study found a positive moral effect of the diversity of the nationality of the board members in Palestinian banks on their financial performance.

Huang et al. [20] conducted a study examining how Business Intelligence influences Innovativeness and Network Learning. They confirmed the significant impact of both Innovativeness and Network Learning on financial performance. Consequently, it can be confirmed that the influence of Business Intelligence on financial performance in start-ups is mediated indirectly by Innovativeness and Network Learning. Surprisingly, these two factors are essential to improve financial performance.

Ramanujam and Elangovan [29] highlighted the significant components influencing financial intelligence, particularly financial stress among executive managers. These components included understanding fundamentals; results; analysis; personal traits; financial knowledge, education, confidence, and capabilities. The increasing need to develop financial intelligence skills in the financial environment helps create opportunities for capital financing for projects [4].

Furthermore, financial intelligence brings comfort to financial work, and its deep application maximizes data accuracy, ensures the quality of accounting information, improves accounting efficiency, and promotes organizational development [19]. Al-Marounsi [2] observed that banks’ application of financial intelligence skills enhances their strategic value in areas such as strategic learning, reputation, and success. Financial intelligence also significantly helps to reduce the cost of banking services in Chinese commercial banks [37]. Financial intelligence has emerged as a best practice and core competency in numerous organizations, leading to improved financial results, increased employee morale, and reduced employee turnover rates [16].

Various studies have explored the field of financial performance. For instance, [3] found that companies’ adherence to corporate governance regulations positively impacts the financial performance of companies listed in the Saudi Arabian financial market. [6] examined the Libyana company in Tripoli, determining that implementing modern techniques in developing accounting information systems could improve financial performance. Furthermore, decision-makers’ understanding and awareness enhance financial performance. Moreover, [26] suggested that retail companies in South Africa could enhance their financial performance by improving working capital components without risking the loss of customers and suppliers.

Additionally, [18] demonstrated that accounting information systems positively influence financial performance. Similarly, [30] highlighted the significant role of financial analysis tools in measuring and evaluating the financial performance of a dairy enterprise in Algeria. [25] revealed that using financial intelligence methods and tools in the internal control systems strengthens Iraqi banks, enhances their procedures, and facilitates risk avoidance and error prevention.

Furthermore, [17] indicated that financial intelligence influences the functions of operational managers and the financial performance of the National Iranian Oil Refining and Distribution Company, demonstrating how managers can use financial intelligence to assist their organizations to succeed.

To the best of the author’s knowledge, the current study is among the first research efforts in Palestine. This study seeks to establish a connection between the variables of financial intelligence and the financial performance of banks and insurance companies. This approach reflects an original and pioneering contribution to this field of research in Palestine. Furthermore, the current study emphasizes using various dimensions of financial intelligence to assess its impact on financial performance, which adds a layer of complexity and a deeper understanding of the relationship between these variables, contributing to developing theories and concepts related to financial intelligence. There is also a scarcity of Arab and Palestinian studies that link the variables under investigation. Therefore, the current study attempts to bridge this gap in the research literature and expand understanding of this field.

2.1 Theoretical framework

2.1.1 Financial intelligence

The increasing complexity of society and advancements in science and technology have led to the expansion of organizational activities and increased business needs and complexities; thus, organizations now require skilled and competent managers in financial and managerial administration. This requirement is crucial to preserve business organizations’ assets and facilitate their growth by acquiring assets that can generate wealth [17].

Financial intelligence has emerged as a contemporary concept in financial management, playing a pivotal role in streamlining investment and financial management decisions [28]. The philosophy of financial intelligence is rooted in the potential to efficiently accomplish tasks and invest financial resources through a comprehensive understanding of financial success metrics and their impact on performance [5]. Moreover, it is a financial and managerial topic that has recently gained scholarly attention in the economic and administrative fields.

No universally agreed-upon definition of financial intelligence exists in academic circles; however, there are two main perspectives. The first and more common perspective suggests that financial intelligence is the ability of an individual to accumulate wealth, primarily referring to an individual’s intelligence and ability to manage finances in terms of investments and wealth management. The second perspective considers financial intelligence as a comprehensive indicator, emphasizing that an individual should focus on earning money and consider factors such as the ability to control risks and the individual’s self-feelings, such as a sense of security and happiness [34].

Researchers and scholars have variously defined financial intelligence. For instance, [36] defined it as a “Standard or measure of intelligence used to assess an individual’s ability to organize and manage their financial resources, their ability to earn and manage money and assets to maximize them in the shortest possible time, and to preserve these assets.” [21] conceived of financial intelligence as “An attempt to identify and gather information related to financial matters in an organization,” while Shukyn and Krull (2020, p.2) defined it as “Understanding financial and accounting principles that apply to the business world to acquire the skills and knowledge for managing a business or personal financial matters.”

2.1.2 Importance of financial intelligence

Various studies have emphasized that financial intelligence ensures a comprehensive understanding of a company’s current state [28]. Individuals with financial intelligence possess high financial knowledge and sound financial behavior [8]. Furthermore, financial intelligence enhances the efficiency of accounting work and promotes the development of institutions [19]. Moreover, the financial intelligence skills of auditors and financial analysts contribute to safeguarding business organizations. The extant literature has indicated that the more experienced an auditor is, the better their ability to detect organizational fraud and manipulation will be [21]. Banks, in particular, have benefited from financial intelligence skills, for adding strategic value to banks and protecting their assets [37].

Financial intelligence skills among top-level and executive management also improve managerial and financial performance. It also indirectly improves company performance by enhancing innovation and organizational learning levels and strengthening financial performance [20]. Financial intelligence also enhances a company’s financial performance by making sound financial decisions based on reliable information and data, leading to increased competitiveness and operational effectiveness [27].

In short, financial intelligence offers various advantages to business organizations, and one of the most prominent benefits is its assistance in making correct and effective financial decisions. Financial intelligence provides those managing business organizations with a clearer picture of the organization’s current situation by analyzing financial numbers, ratios, and indicators, aiding in understanding the company’s position. Furthermore, it enables a more precise assessment of market dynamics and various environmental changes and their potential impact on the organization.

2.1.3 Financial intelligence skills

Financial intelligence encompasses four fundamental skills managers must master effectively [12]. First, understanding the foundation of finance indicates that smart management should have a proficient grasp of financial skills, involving a deep understanding and accurate interpretation of financial statements. This skill requires knowledge of the distinction between cash and profits. Second, understanding the art of accounting refers to the ability of management to work with financial and accounting figures accurately and skillfully to draw conclusions that reflect the company’s current and future performance and effectively present them to stakeholders. Third, understanding financial analysis involves analyzing accounting data extracted from financial statements to obtain information on ratios and financial indicators. It aids in making better decisions. Finally, understanding a broader financial picture of the company goes beyond just the numbers and information presented in reports and financial statements. It involves comprehending the internal and external environment of the company, which affects and is affected by the company.

2.2 Financial performance

Financial performance represents the achievement of goals in the form of numbers and financial ratios, allowing for comparing a company’s performance over time and with other companies operating in the same industry. The literature provides various definitions of the concept of financial performance. Al-Quaymi and Ahmed [3] defined it as “an indicator of the extent to which a company’s management can optimize the use of available assets in all of the company’s operations to maximize profits.” Moreover, according to [7], financial performance is “the fundamental mirror that demonstrates a company’s ability, through its financial position, to achieve its planned goals on time and compete with other companies through these objectives. This requires planning and providing accurate financial data.” Performance is also defined as “a measure of the outputs and goals that an organization or project seeks to achieve, thus linking the forms of activities performed with the desired objectives” [13].

Given the above, financial performance is a financial realization of the general concept of performance; it reflects achieving a company’s economic objectives through simple financial indicators based on results. Therefore, financial performance can be defined as using financial indicators to measure business organizations’ success in achieving their goals and effectively investing their various resources through efficiently executing the organization’s operations and activities.

2.2.1 Financial performance indicators

Financial performance indicators are characterized by being dynamic and diverse. A company’s financial performance can be determined using ratios derived from financial reports or stock market data [11]. Essentially, profitability ratios are indicators of a company’s ability to maximize returns, typically measured by one of the following metrics: ROA, ROE, ROI, and profit margin [15]. Due to the nature and objectives of the study, the focus will be placed on three financial ratios within profitability analysis: ROI, ROA, and ROE.

  • ROI: It is one of the best financial indicators used to measure the efficiency of asset utilization. It is a critical metric used by senior management, investors, and shareholders to assess a company’s performance. It can be calculated using the following equation [32], ROI = Net Income / Total Assets.

  • ROE: It is a profitability ratio that describes a company’s ability to provide benefits to common shareholders (equity owners) by showing the net income available to the shareholders’ equity used by the company (Almira and Wiagustini, 2020). This ratio is important for shareholders, and the higher it is, the more efficient the company’s use of capital by its management. It can be calculated using the following equation [24], ROE = Net Income / Equity.

  • ROA: It is one of the most common financial ratios and has been used in the industry since 1919 when it was first used by DuPont. It can be calculated using the following equation [23], ROA = EPIT / Total Assets.

Financial intelligence skills of senior and executive management in companies help improve financial and managerial performance. Studies have highlighted the importance of financial intelligence in enhancing financial performance, including in operational aspects. This emphasis is achieved by understanding the organization’s goals and plans, the ability to formulate strategies, and the managers’ mental capacity to comprehend issues and lead teams within the organization [17]. In addition, financial intelligence indirectly improves a company’s performance. Financial intelligence skills improve innovation and organizational learning, which enhances a company’s financial performance [20]. Moreover, it improves a company’s financial performance by facilitating the adoption of sound financial decisions based on reliable information and data. Proper implementation and financial intelligence enable companies to leverage market opportunities, promptly identify potential operational issues, and enhance their competitive strength and operational efficiency [27].

3 Methodology

This study examined the impact of senior management’s financial intelligence on the financial performance of banks and insurance companies operating in the Gaza Strip to answer the following central question:

What is the impact of the financial intelligence of senior management on the financial performance of banks and insurance companies operating in the Gaza Strip?

The study’s main question is divided into the following three sub-questions:

  1. 1.

    What is the impact of the financial intelligence of senior management on the financial performance of banks and insurance companies in the Gaza Strip, as measured by ROI?

  2. 2.

    What is the impact of the financial intelligence of senior management on the financial performance of banks and insurance companies in the Gaza Strip, as measured by ROE?

  3. 3.

    What is the impact of the financial intelligence of senior management on the financial performance of banks and insurance companies in the Gaza Strip, as measured by ROA?

Given the study problem and objectives, the following hypotheses were formulated.

  • Hypothesis 1 (H1): The financial intelligence of senior management has a statistically significant impact on the financial performance of banks and insurance companies in the Gaza Strip, as measured by ROI.

  • Hypothesis 2 (H2): The financial intelligence of senior management has a statistically significant impact on the financial performance of banks and insurance companies in the Gaza Strip, as measured by ROE.

  • Hypothesis 3 (H3): The financial intelligence of senior management has a statistically significant impact on the financial performance of banks and insurance companies in the Gaza Strip, as measured by ROA.

The researcher followed the analytical approach to achieve the study objectives, relying on two main sources of information, secondary and primary sources. The secondary sources included financial reports from the 11 banks and insurance companies operating in the Gaza Strip, while primary sources involved data collection through a structured questionnaire. The sample was randomly selected and included top-level management personnel, such as board members, financial managers, administrative managers, and department heads.

The study tool involved a questionnaire divided into two main sections. The first section included sociodemographic information about the respondents, such as educational qualifications, specialization, job title, and years of experience. The second focused on the dimensions of the study and consisted of four main dimensions, as follows:

  • Dimension 1: Understanding beyond numbers consisted of eight items.

  • Dimension 2: Mastering financial and monetary skills consisted of seven items.

  • Dimension 3: Understanding financial analysis consisted of seven items.

  • Dimension 4: Grasping the overall financial picture consisted of seven items.

A 1–10 scale was used for the questionnaire items, where a higher score indicates a higher level of agreement and vice versa.

The questionnaire was presented to nine referees who are faculty members at various universities. Based on the referees’ feedback, some items in the questionnaire were modified, which included deletions, additions, and revisions, resulting in the final version. The Cronbach’s alpha coefficient for all questionnaire items was 0.974, indicating high internal consistency and statistical reliability. According to [14], a Cronbach’s alpha value of 0.60 or higher is statistically acceptable, and values exceeding 0.90 are considered excellent. This valuation indicates that the questionnaire results are reliable and valid in achieving the research objectives. The construct validity of the questionnaire ranged from 0.882 to 0.945.

The Kolmogorov–Smirnov test (K–S test) was used to verify whether the data followed a normal distribution. The results showed that the questionnaire dimensions followed a normal distribution. Consequently, parametric tests were used, including the Pearson correlation coefficient, multiple linear regression, independent samples t-test, and one-way analysis of variance. Table 1 shows the statistical description of the personal data.

Table 1 Statistical description of the personal data (N = 67)
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Attiya [9] proposed that if the purpose of estimating the model is a prediction, the coefficient of determination factor is the most important criterion. On the other hand, if the purpose of the estimation is to explain certain economic phenomena, the significance test such as T-test is considered to be the most important. In general, priority is given first to economic criteria and then to statistical and econometrics criteria. Consequently, the significance of the T-test is used in this study.

Selya et al. [31] showed that Cohen’s f 2 is appropriate for calculating the effect size within a multiple regression model in which the independent variable of interest and the dependent variable are both continuous. Cohen’s f 2 is commonly presented in a form appropriate for global effect size:

$${f}^{2}=\frac{{R}^{2}}{1-{R}^{2}}$$

where \({R}^{2}\) is the coefficient of determination. Effect size measures for f 2 are 0.02, 0.15, and 0.35, indicating small, medium, and large effects, respectively.

The results show that all respondents have either a bachelor’s or postgraduate degree, assuring their ability to understand and respond to the questionnaire and provide the necessary information. Furthermore, most of the respondents hold advanced job positions, which enhances confidence in the data collected through the questionnaire. Notably, most academic backgrounds are within business and finance, indicating a high level of awareness about the study’s topic, facilitating understanding and answering the questionnaire. Approximately 95.5% of the respondents have more than five years of experience, indicating a high average experience level. This result suggests that Palestinian companies possess good managerial experience, and job stability exists among the management of these companies.

4 Data analysis

The independent samples t-test was used to analyze the questionnaire items based on the results of the normal distribution test. The questionnaire items are interpreted as follows.

4.1 Analysis of the financial intelligence dimensions

The t-test is used to determine the degree of agreement on the dimensions of financial intelligence, as shown in Table 2.

Table 2 T-test for each dimension of financial intelligence
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According to the results in Table 2, the mean score for the dimension “understanding beyond numbers” equals 7.88 with a standard deviation of 0.90, which indicates that the study’s sample members strongly agree with the dimension of understanding beyond numbers. This result is consistent with [37], who stated that executives in Chinese commercial banks possess sufficient understanding to read beyond the numbers. Conversely, this finding differs from [21], which indicated that small companies in Indonesia were vulnerable to fraud due to their executives’ weak financial understanding. The difference can be attributed to the study population, which included small and family-owned businesses.

The mean score for the dimension “mastering financial and monetary skills” equals 8.57 with a standard deviation of 1.05, which implies that the study participants strongly agree with mastering financial and monetary skills. This finding is consistent with Mohamed and Khalef, who revealed that investors possessed financial and economic skills that helped them make sound investment decisions. It also aligns with [29], who indicated that financial and non-financial executives in Indian companies possessed financial skills.

Table 2 shows that the mean score for the dimension “understanding financial analysis” equals 8.29 with a standard deviation of 0.98. This result indicates that the study’s sample members strongly agree with understanding financial analysis. This result aligns with [4], [2], and [5], which all indicated that financial analysis skills were available among the executives of companies, especially financial firms operating in the investment sector.

Similarly, the mean score for the dimension “grasping the full financial picture” equals 8.54 with a standard deviation of 1.01, which indicates that the study participants strongly agree with grasping the full financial picture. This study finding is consistent with [37] and [4], who underscored companies’ interest in forming a comprehensive view of their current competitive position and analyzing the internal and external business environment.

The results generally indicate that the mean score for all dimensions of financial intelligence is 8.32 with a standard deviation of 0.89. The test value equals 21.393, which is positive, and the probability value is less than 0.001; therefore, this field is statistically significant at the significance level of 0.05. This result indicates a high level of agreement among the study’s sample members regarding financial intelligence in general. Specifically, the dimension “mastering financial and monetary skills” ranked first, followed by “grasping the full financial picture,” while “understanding financial analysis” came third, and “understanding beyond the numbers” was last.

These results reflect the awareness of the management of the companies under study about the dimensions of financial intelligence, which can be attributed to the fact that most companies in the sample are financial institutions (banks and insurance companies) that place particular importance on the financial aspects. Therefore, individuals with financial and managerial backgrounds with advanced academic qualifications typically lead financial management in these companies. These findings are consistent with [2], which found the presence of financial intelligence in the direction of commercial banks in the Iraqi Duhok province, and [4], which confirmed the presence of financial intelligence dimensions in small projects in Iraq.

Regarding the descriptive analysis of financial performance indicators, the results show that the average ROA ranges from 1% to 9.8%, with an overall mean score of 3.6% for all companies. The average ROI varies from 0.7% to 7.2%, with an overall average of 2.6% for all companies. Finally, the average ROE ranges from 4.9% to 20.9%, with an overall average of 9.8% for all companies. These results indicate that the companies in the study sample have good financial performance. This positive performance reflects their ability to invest their assets and financial resources to generate good financial returns and meet the expectations of investors and company owners.

4.2 Hypothesis testing

This section details the results of testing the study hypotheses.

4.2.1 Hypothesis one

The financial intelligence of senior management has a statistically significant impact (at the significance level α ≤ 0.05) on the financial performance of banks and insurance companies operating in the Gaza Strip, as measured by the ROI. Multiple linear regression was used to determine the impact of the financial intelligence of senior management on the financial performance of banks and insurance companies operating in the Gaza Strip. The effect was measured by the ROI, as shown in Table 3.

Table 3 Hypothesis 1—Multiple linear regression analysis
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The results illustrate that the multiple correlation coefficient is 0.475, the coefficient of determination is 0.226, and the adjusted coefficient of determination is 0.176. These results indicate that 17.6% of the variation in the ROI for banks and insurance companies operating in the Gaza Strip can be explained through the linear relationship with financial intelligence dimensions. Simultaneously, the remaining percentage is attributed to other factors affecting ROI.

The effect size f2 equals 0.292 indicating a medium effect of the dimensions of financial intelligence on the financial performance of banks and insurance companies operating in the Gaza Strip as measured by ROI.

The F statistic equals 4.516 with a p-value of 0.003, consequently, this qualifies us to support the alternative hypothesis suggesting the financial intelligence dimensions (understanding beyond the numbers, mastering financial and monetary skills, understanding financial analysis, and grasping the overall financial picture) jointly, are significantly associated with the financial performance of banks and insurance companies operating in the Gaza Strip as measured by ROI. This result indicated that senior management’s financial intelligence has a statistically significant effect (at the significance level α ≤ 0.05) on the financial performance of banks and insurance companies operating in the Gaza Strip as measured by ROI.

The p-values associated with understanding beyond the numbers, understanding financial analysis, and grasping the overall financial picture indicate that these variables have a significant effect on the financial performance of banks and insurance companies operating in the Gaza Strip as measured by ROI. The signs of the regression coefficients indicate that there exists a significant positive association between these variables and ROI. On the other hand, the p-value of mastering financial and monetary skills indicates this variable may have a non-significant association with ROI.

From the regression output, we can see that the regression coefficient for understanding beyond the numbers is 0.024. This means that, on average, each additional unit in understanding beyond the numbers is associated with an increase of 0.024 units in the financial performance of banks and insurance companies operating in the Gaza Strip as measured by ROI, assuming the other independent variables are held constant. Similarly, for the other financial intelligence dimensions.

In general, it can be concluded that financial intelligence improves companies’ financial performance and efficiently utilizes their assets and financial resources. This finding agrees with the results of several previous studies, such as [17], which confirmed the impact of financial intelligence on the functions of financial managers and its subsequent reflection on financial performance. This finding is also consistent with [27]. Nevertheless, the results of this study differ from [36] and [20]. The difference in results could be due to these studies being conducted on emerging companies, unlike the current study, which focused on large companies in the Gaza Strip.

4.2.2 Hypothesis two

Senior management’s financial intelligence has a statistically significant effect on the financial performance of banks and insurance companies operating in the Gaza Strip as measured by ROE.

Table 4 indicates that the multiple correlation coefficient is 0.643, the coefficient of determination is 0.413, and the adjusted coefficient of determination is 0.376. This finding implies that 37.6% of the variation in ROE for banks and insurance companies operating in the Gaza Strip can be explained through the linear relationship with financial intelligence dimensions. Meanwhile, the remaining percentage is attributed to other factors influencing ROE.

Table 4 Hypothesis 2—Multiple linear regression analysis
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The effect size f2 equals 0.704 indicating a large effect of the dimensions of financial intelligence on the financial performance of banks and insurance companies operating in the Gaza Strip as measured by ROE.

The F statistic equals 10.943 with a p-value of < 0.001, consequently, this qualifies us to support the alternative hypothesis suggesting that the financial intelligence dimensions jointly are significantly associated with the financial performance of banks and insurance companies operating in the Gaza Strip as measured by ROE.

This result indicated that senior management’s financial intelligence has a statistically significant effect on the financial performance of banks and insurance companies operating in the Gaza Strip as measured by ROE.

The p-values associated with mastering financial and monetary skills, and understanding financial analysis, indicate that these variables have a significant effect on the financial performance of banks and insurance companies operating in the Gaza Strip as measured by ROE. The signs of the regression coefficients indicate that there exists a significant positive association between these variables and ROE. On the other hand, the p-value of understanding beyond the numbers indicates this variable may have a non-significant association with ROE.

From the regression output, we can see that the regression coefficient for understanding beyond the numbers is 0.015. This means that, on average, each additional unit in understanding beyond the numbers is associated with an increase of 0.015 units in the financial performance of banks and insurance companies operating in the Gaza Strip as measured by ROE, assuming the other independent variables are held constant. Similarly, for the other financial intelligence dimensions.

The results can be interpreted by highlighting the top management’s focus on maximizing profits and ROA more than their concern for ROE, which is the primary concern of the board of directors representing the shareholders and investors. These findings align with [36] and [20], which indicated that financial intelligence does not significantly impact financial performance.

4.2.3 Hypothesis three

Senior management’s financial intelligence has a statistically significant effect on the financial performance of banks and insurance companies operating in the Gaza Strip as measured by ROA.

Table 5 indicates that the multiple correlation coefficient is 0.376, the coefficient of determination is 0.141, and the adjusted coefficient of determination is 0.086. This finding implies that 8.6% of the variation in ROA for banks and insurance companies operating in the Gaza Strip can be explained through the linear relationship with financial intelligence dimensions. Meanwhile, the remaining percentage is attributed to other factors influencing ROA.

Table 5 Hypothesis 3—Multiple linear regression analysis
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The effect size f2 equals 0.164 indicating a medium effect of the dimensions of financial intelligence on the financial performance of banks and insurance companies operating in the Gaza Strip as measured by ROA.

The F statistic equals 2.557 with a p-value of 0.047, consequently, this qualifies us to support the alternative hypothesis suggesting that the financial intelligence dimensions jointly, are significantly associated with the financial performance of banks and insurance companies operating in the Gaza Strip as measured by ROA.

This result indicated that senior management’s financial intelligence has a statistically significant effect on the financial performance of banks and insurance companies operating in the Gaza Strip as measured by ROA.

The p-values associated with understanding beyond the numbers, understanding financial analysis, and grasping the overall financial picture indicate that these variables have a significant effect on the financial performance of banks and insurance companies operating in the Gaza Strip as measured by ROA. The signs of the regression coefficients indicate that there exists a significant positive association between these variables and ROA. On the other hand, the p-value of mastering financial and monetary skills indicates this variable may have a non-significant association with ROI.

From the regression output, we can see that the regression coefficient for understanding beyond the numbers is 0.028. This means that, on average, each additional unit in understanding beyond the numbers is associated with an increase of 0.028 units in the financial performance of banks and insurance companies operating in the Gaza Strip as measured by ROA, assuming the other independent variables are held constant. Similarly, for the other financial intelligence dimensions.

In general, the impact of financial intelligence on the financial performance of companies is attributed to the fact that financial intelligence enhances the ability of top management to make sound financial decisions based on an understanding of the company’s current financial situation. Additionally, financial analysis assists in predicting the company’s future economic and competitive position and gaining a comprehensive financial picture of the company’s situation. These findings support [33], [22], and [27], which affirmed that financial intelligence contributes to improving company performance.

5 Results and recommendations

This study reached the following results. First, financial intelligence dimensions are available to a high degree, with mastering financial and monetary skills ranking first, followed by grasping the overall economic picture in the second rank. Financial analysis came third, and understanding beyond the numbers took fourth and last place. Second, companies in this study show good financial performance, reflecting their ability to invest in their assets and financial resources to generate good financial returns and meet the expectations of investors and company stakeholders. Third, senior management’s financial intelligence (understanding beyond the numbers, understanding financial analysis, and grasping the overall financial picture) has a statistically significant effect on the financial performance of banks and insurance companies operating in the Gaza Strip as measured by ROI. Fourth, financial intelligence dimensions (mastering financial and monetary skills and understanding financial analysis) have a statistically significant effect on the performance of banks and insurance companies as measured by ROE. However, there is no statistically significant effect of financial intelligence dimensions (understanding beyond the numbers and grasping the overall financial picture) on the performance of banks and insurance companies as measured by ROE. Finally, senior management’s financial intelligence (understanding beyond the numbers, understanding financial analysis, and grasping the overall financial picture) has a statistically significant effect on the financial performance of banks and insurance companies operating in the Gaza Strip as measured by ROA.

The researcher also offers the following recommendations. First, senior management of companies should pay greater attention to developing financial intelligence skills among employees in supervisory positions, especially those in administrative, financial, and planning roles, as these skills impact improving company performance. Second, employees in companies’ financial departments should prioritize applying financial and monetary skills when making financial decisions. Third, company management should establish mechanisms for applying financial analysis skills and using them in decision-making, as this enhances company performance. Fourth, the planning unit within companies should analyze the internal and external business environment to assess the company’s labor market and competitive position, which is essential for identifying weaknesses, seizing opportunities, and mitigating threats. Finally, future research should assess the impact of financial intelligence on financial risk management in Palestinian joint-stock companies.