Intellectual capital and asset quality in an emerging banking market

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nicholas Asare ◽  
Margaret Momo Laryea ◽  
Joseph Mensah Onumah ◽  
Michael Effah Asamoah
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Value Added ◽  
Annual Data ◽  
Capital Investments ◽  
Content Type ◽  
Panel Regressions ◽  
Banking Market ◽  
Asset Quality

PurposeThis study examines the causal relationship between intellectual capital and asset quality of banks in Ghana.Design/methodology/approachUsing annual data extracted from audited financial statements of 24 banks from 2006 to 2015, a ratio of non-performing loans to gross loans and advances is employed to estimate asset quality growths while the value-added intellectual coefficient by Pulic (2008, 2004) measures intellectual capital. The panel-corrected standard errors estimation technique is used to estimate panel regressions with asset quality as the dependent variable.FindingsAsset quality of banks in Ghana is generally not affected by intellectual capital. However, when intellectual capital is divided into its components, the study indicates that there are significant positive relationships between asset quality and two components of intellectual capital. Thus, structural capital and human capital efficiencies positively affect the asset quality of banks.Practical implicationsThe findings of the study implore managements of banks to increase structural and human capital investments and efficiencies to improve asset quality. Furthermore, the results have direct implications on developments in financial markets in emerging economies.Originality/valueThe study analyses the link between typical intellectual capital and asset quality of banks which is yet to be empirically examined in an emerging banking market.

Measuring Performance of Hotels in Kolkata

2015 ◽  
pp. 64-73
Author(s):  
Debasish Batabyal
Keyword(s):  
Human Capital ◽  
Service Quality ◽  
Human Resources ◽  
Intellectual Capital ◽  
Service Sector ◽  
Value Added ◽  
Physical Capital ◽  
Return On Equity ◽  
Coefficient Method

Intellectual capital is the most complicated element of management and the same is more important in any service sector including hospitality and tourism. Airlines, hotels, restaurant chains, and tour operators have been focusing on human resources for enhancing technical and functional qualities of services. Here, the study is confined to the measurement of service quality of Indian hotels in Kolkata through intellectual capital (human capital and structured capital) and its comparison with the physical capital over the years. Value Added Intellectual Coefficient Method (VAICTM) is applied for measuring the performance of hotels. Corporate performance through quality services of intellectual capital has been measured through profitability, return on equity, and sales growth. The findings suggest that the performance of a hotel's intellectual capital can significantly explain corporate value creation through quality services.

Intellectual capital and financial performance in social cooperative enterprises

2018 ◽  
Vol 19 (4) ◽  
pp. 712-731 ◽  
Author(s):  
Nick Bontis ◽  
Massimo Ciambotti ◽  
Federica Palazzi ◽  
Francesca Sgro
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Economic Performance ◽  
Value Added ◽  
Positive Association ◽  
Performance Outcomes ◽  
Relational Capital ◽  
Content Type ◽  
Structural Capital ◽  
Cooperative Enterprises

Purpose The purpose of this paper is to provide empirical evidence of the relationship between intellectual capital (IC) and economic performance, with focus on social cooperative enterprises (SCEs) that work in non-profit sectors. Design/methodology/approach A survey was developed and administered in Italy. A final sample of 151 SCEs participated in the study. Data were collected on IC measures, social enterprise activities and economic and mission-based performance outcomes. Findings Two hypotheses that proposed a positive association between IC sub-components (i.e. human capital, structural capital and relational capital) and the economic and mission-based performance of SCEs were tested. Findings highlight that human capital contributes to explain economic performance which is positively affected by the presence of graduate employees and value added per employee. However, economic performance is negatively affected by the yearly training per employee. In addition, human and relational capital contribute to explain mission-based performance which is positively affected by yearly training, the value added per employee and the quality of relationships with customers. However, mission-based performance is negatively affected by the relationships’ quality with the reference territorial community. Therefore, relational capital would seem to affect only mission-based performance, and human capital influences both dimensions of corporate performance. Structural capital does not affect social cooperatives’ performance. Practical implications Some of the results in this study are particular to this research setting. It is therefore important for senior leaders of SCEs to take the results of general IC literature with a grain of salt. Whereas most of the academic literature generally supports the positive relationship of all IC sub-components (i.e. human, structural and relational capital) with performance outcomes, this is not the case in this particular study. Originality/value This is the first empirical study that has examined the linkages between IC sub-components and performance outcomes in SCEs in Italy.

Voluntary disclosure of intellectual capital information by deposit money banks in Nigeria

2020 ◽  
Vol 21 (6) ◽  
pp. 1035-1052
Author(s):  
Nnachi Egwu Onuoha ◽  
Grace Nyereugwu Ofoegbu ◽  
Regina Gwamniru Okafor ◽  
Vincent Aghaegbunam Onodugo
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Voluntary Disclosure ◽  
Annual Reports ◽  
Empirical Literature ◽  
Rank Test ◽  
Relational Capital ◽  
Content Type ◽  
Significant Difference

PurposeThe purpose of this paper is to investigate the extent and quality of voluntary intellectual capital disclosure (ICD) by deposit money banks (DMBs) in Nigeria.Design/methodology/approachData were collected from a survey of 271 informants and content analysis of the annual reports of 12 DMBs in Nigeria. The data collected were analysed using factor analysis, t-test, Friedman test for related sample and Wilcoxon signed-rank test.FindingsThe findings of this paper indicate that the extent of ICD is significant and higher than the quality of ICD, which is insignificant, with the extent of disclosure highest in the relational component of intellectual capital. It also shows that a significant difference exists amongst the extent of human capital, structural capital and relational capital disclosures, with the significant difference traced to the difference between the extent of disclosures of relational capital and human capital.Research limitations/implicationsThe results can be interpreted across the target sample where the study covers a five-year period and 12 DMBs in Nigeria. However, the study provides a robust empirical basis for policymakers and regulators to develop future ICD regulatory guidelines for banks and push for improvement in the quality of ICD by DMBs.Originality/valueNo previous studies of voluntary ICD have considered the extent and quality of ICD by DMBs in Nigeria. Further, this study shed the light on a new human capital item related to “employee health and mental state”; therefore, it extends and supports the previous empirical literature on ICD.

scholarly journals Corporate board structures and intellectual capital: evidence from banks in Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nicholas Asare ◽  
Francis Aboagye-Otchere ◽  
Joseph Mensah Onumah
Keyword(s):  
Intellectual Capital ◽  
Generalized Method Of Moments ◽  
Gender Diversity ◽  
Negative Relationship ◽  
Value Added ◽  
Board Independence ◽  
Annual Data ◽  
Board Size ◽  
Content Type ◽  
Board Gender Diversity

PurposeThis study examines the nature of the relationship between board structures (BSs) and intellectual capital (IC) of banks in Africa.Design/methodology/approachUsing annual data from financial statements of 366 banks from 26 African countries from 2007 to 2015, the study estimates IC using the value-added intellectual coefficient (VAIC) and BSs using board size, board independence and board gender diversity. The system generalized method of moments and panel-corrected standard error estimation strategies are used to estimate panel regressions.FindingsThere is a significant negative relationship between board independence and intellectual capital. The results also indicate that the IC of banks does not depend on board size and board gender diversity.Practical implicationsThe study's findings provide evidence of the extent to which BSs have been instituted to support investments in intellectual capital as a means of improving the performance of banks in Africa.Originality/valueThis study provides some empirical evidence from Africa's banking sector to justify that banks with better IC have boards that are less independent. This study is one of the few studies that employs many countries' data.

Examining the intellectual capital web reporting by Spanish universities

2019 ◽  
Vol 43 (5) ◽  
pp. 775-798 ◽  
Author(s):  
Yolanda Ramirez ◽  
Elena Merino ◽  
Montserrat Manzaneque
Keyword(s):  
Human Capital ◽  
Content Analysis ◽  
Intellectual Capital ◽  
Information Needs ◽  
Public Universities ◽  
Least Square ◽  
Content Type ◽  
Spanish Universities ◽  
Spanish Public Universities

Purpose The purpose of this paper is threefold: first, to know the views of university stakeholders concerning intellectual capital (IC) reporting; second, to examine the quality of voluntary IC disclosure by public Spanish universities on their websites; and third, to analyze some of the potential factors affecting this kind of disclosure. Design/methodology/approach The paper applies a content analysis and a survey. The content analysis was used to analyze the websites of 50 public Spanish universities in the year 2016, while the survey was submitted to all members of the Social Councils of Spanish public universities. Also, a regression analysis (ordinary least square model) is conducted to relate the disclosure index to its determinants. Findings The results of this study show that human capital was the most disclosed category with relational capital being the least frequently disclosed. However, the quality of structural capital disclosures was higher than relational and human capital. Moreover, the results show that size and university’s internationality affect IC disclosure in Spanish public universities. Practical implications This paper stimulates the debate between universities and policy-makers concerning the benefits related to IC reporting as a tool for addressing different stakeholders’ needs. In order to satisfy the information needs of university stakeholders, Spanish universities can be recommended to focus on reporting higher quality information on financial relations, students’ satisfaction, quality standard, work-related knowledge/know-how and collaboration between universities and other organizations such as firms, local government and society as a whole. Originality/value This research brings new expertise regarding IC disclosure in higher education and to reveal some of the possible determinants to improve this disclosure.

The contributing factors of intellectual capital disclosures in agriculture and mining sectors of Indonesia and Thailand

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saarce Elsye Hatane ◽  
Josua Tarigan ◽  
Elenne Stefanie Kuanda ◽  
Elizabeth Cornelius
Keyword(s):  
Human Capital ◽  
Content Analysis ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Annual Reports ◽  
Contributing Factors ◽  
Minority Shareholders ◽  
Content Type ◽  
Factors Affecting

Purpose This study aims to examine the factors affecting intellectual capital disclosure (ICD), especially in the agriculture and mining sectors in Indonesia and Thailand. Additionally, this study discusses the difference in ICD levels between Indonesia and Thailand. Design/methodology/approach The sample used is companies listed on the Indonesia Stock Exchange and Stock Exchange of Thailand from 2013 to 2017. The method used is a content analysis of 380 annual reports (150 from Thailand and 230 from Indonesia). This study uses a panel regression model. Variables tested are firm size, market shares, minority shareholders, profitability, leverage and the focus on ICD components such as human capital disclosure, structural capital disclosure and relational capital disclosure. Findings IC disclosures in financial statements are generally oriented to past events and focus more on the human capital component. Overall, ICDs in Thailand are more qualified than in Indonesia. The findings support the stakeholder and legitimacy theories. It was found that the greater the company’s resources, the higher the quality of disclosure of all intellectual capital (IC) components. Conversely, when associated with the position in the market, companies reduce the disclosures. As the company has gained the government’s legitimacy, management’s passion for revealing more about its ICD is diminishing. Research limitations/implications This study focuses on the agriculture and mining sectors in Indonesia and Thailand. The annual report is the primary medium to observe IC in qualitative and quantitative ways, yet firms would use other means to disclose their IC. This study deploys the content analysis method, in which the determination of scores is based on the researchers’ judgment. Originality/value This study contributes to the ICD-related literature by focusing on the agriculture and mining industries and multinational scopes. The ICD valuation is extended to the quality of disclosures, in which numerical and monetary figures also support the disclosures. This study also examined minority shareholders’ role in ICD quality, which is infrequent in ICD literature.

The relationship between intellectual capital and employees' productivity: evidence from the Gulf Cooperation Council

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amina Buallay ◽  
Ala’a Adden Abuhommous ◽  
Gagan Kukreja
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Value Added ◽  
Gulf Cooperation Council ◽  
Least Square ◽  
Content Type ◽  
Ordinary Least Square ◽  
Structural Capital ◽  
Capital Efficiency ◽  
The Relationship

PurposeThe purpose of this paper is to establish the relationship between intellectual capital (IC) and employees' productivity (EP) in the Gulf Cooperation Council (GCC) region.Design/methodology/approachThe value-added intellectual coefficient (VAIC) is used to measure IC performance in 198 firms listed in Saudi Arabia and Bahrain from 2012 to 2014. The pooled-corrected estimation technique is used to estimate a panel regression model with EP as the dependent variable. Firm size and sectors are controlled for in the regression analysis. The independent variable (IC) has been measured using human capital efficiency (HCE), structural capital efficiency and capital employed efficiency (CEE) in order to measure the value of IC.FindingsBased on the VAIC, the authors found that the values of IC investments are mostly generated from investments in human capital. The results of the panel-corrected ordinary least square indicate that VAIC and its individual components are positive and significantly related to variations in employees' productivity. HCE contributed the highest and CEE contributed lowest VAIC.Originality/valueThe originality of this paper is to show the importance of investment in the human capital as a key contributor of firm's performance. Hence, this study encourages firm's leaders and management in the GCC to invest and focus their management/leadership styles on human capital to achieve their goals. To the best of the knowledge of the coauthors, this is the first study which empirically examines the relationship between IC and EP in the GCC region.

Voluntary reporting of intellectual capital

2015 ◽  
Vol 16 (4) ◽  
pp. 779-808 ◽  
Author(s):  
Mary Low ◽  
Grant Samkin ◽  
Yuanyuan Li
Keyword(s):  
Human Capital ◽  
Comparative Analysis ◽  
New Zealand ◽  
Intellectual Capital ◽  
Annual Reports ◽  
Content Type ◽  
External Capital ◽  
The Uk ◽  
Australian Universities

Purpose – The purpose of this paper is to examine the quality of voluntary intellectual capital (IC) by universities in New Zealand, Australia, and the UK. Design/methodology/approach – An IC framework was developed to measure IC reporting in the university sector. Content analysis was used to analyse the 2011 annual reports before a three-year comparative analysis of 90 universities (eight New Zealand universities, 38 Australian universities, and 44 UK universities) was undertaken. Findings – New Zealand and Australian universities outperformed the UK universities in terms of IC disclosures. Additionally, the study found moderate increases in the levels of IC disclosures over the period of the study. The quality of IC disclosures by New Zealand universities was generally higher than their Australian and UK counterparts. Internal capital and human capital were the most disclosed categories with external capital being the least frequently disclosed in all three countries. However, the quality of external capital disclosures was higher than internal and human capital. Finally, most IC disclosures were narrative in nature. Practical implications – The framework developed in this study could be adapted, further enhanced, and then applied to exploring IC disclosures in higher educational institutes in other jurisdictions. Originality/value – This is the first comparative analysis of IC disclosures made by universities in three countries.

The role of intellectual capital in financial development: evidence from the banking sector of Turkey

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hakan Uslu
Keyword(s):  
Human Capital ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Banking Sector ◽  
Relevant Literature ◽  
Banking System ◽  
Value Added ◽  
Value Drivers ◽  
Content Type ◽  
The Relationship

Purpose The objective of this study is to explore and compare intellectual capital (IC) and its three components in deposit, investment and participation banks operating in Turkey’s banking sector, and to analyze empirically the relationship between intellectual capital and financial performances of the banks. Design/methodology/approach The study uses a panel data of 46 banks operating in the Turkish banking system during the period of 2005–2019. To measure intellectual capital, value-added intellectual coefficient (VAIC) is used, consisting of the efficiency of a firm’s three types of capital – that is human, structural and employed capitals. To examine the proposed research hypotheses for each bank type separately, multiple regression analysis methods are used. Findings The findings of this paper reveal a positive and statistically significant relationship between IC and financial performance of the banks. Specifically, two of the components of IC, namely, employed and human capital efficiencies, are the most influential value drivers for the financial profitability of the banks, whereas structural capital efficiency has less importance in the profitability of the banks. The financial performance of the banks in Turkey is affected mostly by human capital. Therefore, if banks plan to increase their profitability, they need to pay more attention to human capital than structural and employed capitals. Originality/value The current study can be considered as one of the most comprehensive studies on analyzing the relationship between intellectual capital and financial performances of businesses in the Turkish banking sector. The previous studies analyzed either the banks individually or all banks as one group. The paper provides a valuable framework for executives, managers and policymakers in managing IC within the Turkish context as the most comprehensive study in the relevant literature.

scholarly journals Bank diversification strategy and intellectual capital in Ghana: an empirical analysis

2019 ◽  
Vol 4 (2) ◽  
pp. 246-259 ◽  
Author(s):  
King Carl Tornam Duho ◽  
Joseph Mensah Onumah
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Internal Control ◽  
Value Added ◽  
Diversification Strategy ◽  
Income Diversification ◽  
Data Set ◽  
Content Type ◽  
Focus Strategy ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of intellectual capital and its components on bank diversification choice. Design/methodology/approach Both asset and income diversification are computed and an unbalanced panel data set of 32 banks covering the period 2000–2015 have been used. The panel corrected standard error regression has been used to account for serial correlation and heteroscedasticity. Findings The study found that intellectual capital determines the choice of diversifying. Precisely, intellectual capital motivates asset diversity but it dissuades income diversification. Human capital and structural capital are major components that determine asset diversity decisions. Income diversification decision, in this case to choose a focus strategy, is determined by human capital. This gives credence for the human capital theory in Ghana. Competition encourages a focus strategy. Bank size and leverage enhances income diversification while stock exchange listing and government ownership fosters the focus strategy. Practical implications Diversification strategy, knowledge base of staff, corporate governance and internal control have been considered as factors leading to the collapse of some Ghanaian banks in 2017–2018. The study provides relevant insights for regulators, decision support units and corporate boards. Intellectual capital and value added metrics should be used for modelling and decision making as they have value relevance. Originality/value This is a premier study that has examined the nexus between diversification strategy and intellectual capital in banks.

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