THE IMPACT OF INTELLECTUAL CAPITAL AND FINANCIAL PERFORMANCE: AN EVIDENCE FROM THE ISLAMIC BANKS IN PAKISTAN
Purpose: The study seeks to look at the impact of intellectual capital on the financial performance of Islamic banks in Pakistan. Methodology: This study employed the regression model by using different Islamic banks. In this scenario, the data were collected from the Islamic banks in Pakistan from 2010 to 2019. The financial performance was measured through return on assets and intellectual capital was measured through human capital efficiency, structured capital efficiency, and capital employed efficiency. Main Findings: The study concluded that human capital influences the return on assets which increases the financial performance of Islamic banks. The rest of the components of intellectual capital negatively influence the performance of Islamic banks. Applications of the Study: This study enables us to understand the importance of IC and helps the management of the Islamic banks to get benefit from it. Novelty/ Originality of this study: This is an original study that has not been published before in any journal. The present study contributes to the existing knowledge of the literature on intellectual capital by throwing the light on the previous studies made regarding the Islamic banks and it is useful for the policymakers.