scholarly journals Should Listed Banks Be Concerned with Intellectual Capital in Emerging Asian Markets? A Comparison between China and Pakistan

2019 ◽  
Vol 11 (23) ◽  
pp. 6582 ◽  
Author(s):  
Xu ◽  
Haris ◽  
Yao
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Positive Impact ◽  
Value Added ◽  
Bank Performance ◽  
Bank Profitability ◽  
Structural Capital ◽  
Chinese Banks ◽  
Capital Efficiency ◽  
The Relationship

The purpose of this study is to determine and compare the relationship between intellectual capital (IC) and banks’ performance in China and Pakistan. The data are acquired from listed banks in these two countries during 2010–2018. The Value Added Intellectual Coefficient (VAIC™) method is applied as a measure of IC. The results show that capital employed efficiency (CEE) makes the highest contribution to bank performance in both countries. In addition, the profitability of listed Chinese banks is driven by structural capital efficiency (SCE), while human capital efficiency (HCE) positively affects bank profitability and productivity in Pakistan. In addition, we find that the lagged effect of IC has a positive impact on future bank profitability. This study supports greater investment in IC in order to further improve bank performance in emerging Asian markets.

scholarly journals Measuring intellectual capital efficiency: A case of football clubs in the UEFA Champion League

2020 ◽  
Vol 4 (1) ◽  
pp. 30-40
Author(s):  
Md. Jahidur Rahman ◽  
Siyan Ding
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Positive Impact ◽  
Value Added ◽  
Sports Industry ◽  
Structural Capital ◽  
Football Clubs ◽  
Capital Efficiency ◽  
Almost All ◽  
Football Industry

The purpose of this study is to examine the intellectual capital efficiency of football clubs in the UEFA Champion League between 2010 and 2019. We measure the intellectual capital efficiency of each football club through Value Added Intellectual Coefficient (VAIC) method developed by Pulic (1998, 2004), Ghosh and Mondal (2009), Yalama (2013), Ozkan, Cakan, and Kayacan (2017). Using a sample of 10 football clubs from 7 countries, we find that almost all clubs use their intellectual capital efficiently with great coefficients. We also document that human capital, as the core of intellectual capital, has a positive impact on structural capital. Our finding is significant for sports managers to make strategic management of intellectual sources to create value in the football industry. It suggests that football clubs should pay more attention to intellectual capital like fan loyalty and talented players. Meanwhile, it helps the sports industry to play a great role of human capital in intellectual capital and to increase the competitive advantage of the enterprise.

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.

scholarly journals Intellectual Capital Performance and Profitability of Banks: Evidence from Pakistan

2019 ◽  
Vol 12 (2) ◽  
pp. 56 ◽  
Author(s):  
Muhammad Haris ◽  
HongXing Yao ◽  
Gulzara Tariq ◽  
Ali Malik ◽  
Hafiz Javaid
Keyword(s):  
Intellectual Capital ◽  
Negative Impact ◽  
Positive Impact ◽  
Value Added ◽  
Bank Profitability ◽  
Policy Makers ◽  
Structural Capital ◽  
Capital Efficiency ◽  
The Impact ◽  
Country Specific

The study contributes to the existing literature on intellectual capital (IC) performance and profitability by extending evidence from Pakistan. The study examines the impact of IC performance on the profitability of Pakistani financial institutions. It further examines how corporate governance, bank specific, industry specific, and country specific indicators effect Pakistani banks’ profitability. The result reports both the linear and non-linear impact of IC performance on profitability, which affirms an inverted U–shaped relationship. Among the three value added intellectual coefficient (VAIC) components, capital employed efficiency (CEE), and human capital efficiency (HCE) are found to have a significantly positive and structural capital efficiency (SCE) is found to have a significantly negative impact on bank profitability. The study notes a positive impact on profitability of factors like board independence, directors’ compensation, and higher capitalization. It reports a negative impact on profitability of factors like board size, board meetings, credit risk, industry concentration and economic growth. The results also indicate low profitability of banks during the period of government transition. The study provides insights into the important profitability drives and suggests that the impact of investment in IC on profitability is limited to an extent. The findings of this study are likely to be useful for policy makers, management, and academics.

scholarly journals The Impact of Intellectual Capital on Firms’ Performance: Evidence from Saudi Arabia

2020 ◽  
Vol 9 (4) ◽  
pp. 44
Author(s):  
Afnan Alturiqi ◽  
Khamoussi Halioui
Keyword(s):  
Human Capital ◽  
Saudi Arabia ◽  
Intellectual Capital ◽  
Market Performance ◽  
Value Added ◽  
Positive Association ◽  
Structural Capital ◽  
Capital Efficiency ◽  
The Impact ◽  
The Relationship

The purpose of this study is to empirically investigate the relationship between intellectual capital (IC) measured by the value-added intellectual coefficient (VAIC) and firms’ performance (FP) in the Saudi context. Data are drawn from a sample of 25 Saudi firms listed on the Saudi Stock Exchange (Tadawul) for the period 2015-2018. Using the VAIC model, the multiple linear regression models were constructed to examine the relationship between intellectual capital (IC) and firms’ performance (measured in terms of financial and market performance). The findings indicate that there is a positive association between overall intellectual capital efficiency as well as each of its three components (human capital efficiency, structural capital efficiency, capital employed efficiency) and the firms’ financial performance. Additionally, there is a positive association between human capital efficiency(HCE), structural capital efficiency (SCE), and the firms’ market performance. Overall, the findings suggest that human capital efficiency (HCE) has a significant and positive impact on firms’ financial and market performance in Saudi Arabia. The VAIC method may be a useful tool for managers and investors in their decision process. This is the first study about the impact of intellectual capital on firms’ performance in four industry groups in Saudi Arabia using the VAIC model.

scholarly journals Intellectual Capital Terhadap Nilai Pasar Dan Kinerja Keuangan Perusahaan Dengan Value Added Intellectual Capital (Studi Pada Perusahaan Manufaktur di Bursa Efek Indonesia Tahun 2008-2011)

2019 ◽  
Vol 7 (2) ◽  
pp. 43
Author(s):  
Sofie Sofie ◽  
Ari Prihartini ◽  
Rinda Liana
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Firm Value ◽  
Statistical Tests ◽  
Value Added ◽  
Market Value ◽  
Manufacturing Companies ◽  
Structural Capital ◽  
Capital Efficiency ◽  
And Performance

<p class="Style1"><em>This study aims to ident6 and analyze the effect of intellectual capital as one of the company's intangible assets to market value and financial performance<sup>.</sup>of the company-manufacturing companies using the Value Added Intellectual Capital (VAIC <sup>m</sup>). The analysis method used is multiple panels because the structure of the data used in this research is the data panel. The results of the hypothesis theory shows that the intellectual capital has significant effect on the market value and performance of the company. The three components of intellectual capital, as the physical capital efficiency, human capital and structural capital efficiency, have a positive effect on firm value and performance of companies that dproksi by ROA, ATO, ROE and OI / S. So do the results of statistical tests, except for the efficiency of the human capital and structural capital efficiency ROE against Of / S. The results show that intellectual capital is a factor that is very important and significant effect on the quality of the company which in turn directly affects firm value andfinancial performance of the company.</em></p>

The Relationship between Intellectual Capital and Banks' Productivity in Pakistan

2021 ◽  
pp. 158-169
Author(s):  
Muhammad Asim Afridi ◽  
Imran Khan ◽  
Muddassar Khan
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Productivity Growth ◽  
Banking Sector ◽  
Value Added ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Structural Capital ◽  
Capital Efficiency ◽  
The Impact

The performance of banks has been widely researched using accounting ratios, Tobin�s Q and market returns and less emphasis has been given to productivity measures. The productivity growth of banks is captured through Malmquist Productivity Index (MPI). The study then investigates the impact of intellectual capital on the productivity of banks in Pakistan. Value-added The intellectual Coefficient (VAIC) approach is employed to examine the intellectual capital of banks. Data is obtained from annual reports of 20 banks listed on the Pakistan Stock Exchange for 10 years (2007-2016). The panel corrected standard error approach is used for estimating the panel regression model. The findings provide evidence that the VAIC, human capital efficiency (HCE) and structural capital efficiency (SCE) has a positive impact on productivity growth (MPI). On the other hand, capital employed efficiency (CEE) has no significant impact on productivity growth. The VAIC approach may be useful for the banks and policymakers in a knowledge economy to integrate the intellectual capital in the decision-making process. Our results also suggest that banks in Pakistan shall increase spending on intellectual capital particularly on human capital and structural capital to elevate the intellectual capital of banks and subsequently get benefits in terms of increased productivity Keywords: Intellectual capital; Value added intellectual coefficient (VAIC); Malmquist productivity Index; Pakistan banking sector

scholarly journals Empirical Linkage of Intellectual Capital and Performance of Islamic Banks

2019 ◽  
Vol 8 (5C) ◽  
pp. 677-684
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Positive Relationship ◽  
Value Added ◽  
Annual Reports ◽  
Bank Performance ◽  
Islamic Banks ◽  
Significant Positive Relationship ◽  
Banking Institutions ◽  
Capital Efficiency

With the eminence of the era of knowledge-based economies, the concept of intellectual capital (IC) is of vital importance for organisations to survive in these vigorous environments. As one of the knowledge intensive sectors, there is no exception to banking institutions in enhancing their intellectual capital efficiency to the forefront especially for Islamic banks (IBs) that have to compete with the firmlyestablished conventional banks. Accordingly, this study intends to measure the relationship between intellectual capital efficiency and banks’ performance. In total, 59 Islamic banks are selected and their audited annual reports are compiled from the banks’ websites respectively from year 2006-2017. Value-added intellectual coefficient (VAIC) are applied in measuring IC efficiency. The findings provide empirical evidences of positive relationship between IC efficiency and banks performance, nonetheless, when decomposes into human capital efficiency (HCE), structural capital efficiency (SCE) and capital employed efficiency (CEE), only human capital efficiency shows significant positive relationship with performance of the banks while the other two components show significant negative linkage with bank performance. Furthermore, due to criticisms towards VAIC method, this study using modified value-added intellectual capital coefficient (MVAIC) and found that MVAIC has significant positive relationship with bank performance while relational capital as additional variable in MVAIC regression model has no significant effect with bank performance. This study provides better insights on the importance of utilisation of IC by banking institutions particularly for Islamic banks.

Audit committee characteristics: an empirical investigation of the contribution to intellectual capital efficiency

2018 ◽  
Vol 22 (2) ◽  
pp. 183-200 ◽  
Author(s):  
Amina Buallay
Keyword(s):  
Intellectual Capital ◽  
Audit Committee ◽  
Positive Impact ◽  
Audit Committees ◽  
Content Type ◽  
Structural Capital ◽  
Capital Efficiency ◽  
Independent Variable ◽  
The Relationship ◽  
Specific Control

Purpose In a knowledge economy, it is generally agreed that audit committees play a significant role in supporting the overall firm’s knowledge, particularly enhancing the reporting process. In this respect, this paper aims to examine the effect of audit committee characteristics on intellectual capital efficiency. Design/methodology/approach This study examined 59 banks for five years (2011-2015), obtaining 295 observations. The study’s independent variable is audit committee characteristics. The dependent variable is intellectual capital components (Human: human capital efficiency [HCE]; Structural: structural capital efficiency [SCE]; Relational: relational capital efficiency [RCE]; and Physical/Financial: capital employed efficiency [CEE]). In addition, the study used four bank-specific control variables. Findings The findings deduced from the empirical results demonstrate that there is a significant positive impact of audit committee characteristics on intellectual capital. Moreover, the relationship between audit committee and intellectual capital components (HCE, SCE, RCE and CEE) also has a significant positive relationship if measured individually. Originality/value The study provides insights about the relationship between audit committee characteristics and the improvement in intellectual capital efficiency, which might be used by firms to re-arrange the roles within audit committee, to reassign internal priorities and to escalate position in their environment.

scholarly journals Impact of Intellectual Capital on Financial Performance of Banks in Tanzania

2015 ◽  
Vol 1 (1) ◽  
pp. 17-24 ◽  
Author(s):  
Janeth N. Isanzu
Keyword(s):  
Human Capital ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Value Added ◽  
Physical Capital ◽  
Annual Reports ◽  
Balance Sheets ◽  
Structural Capital ◽  
Knowledge Based Economy ◽  
Capital Efficiency

Since the financial sector reforms took place in the last two decades, Banks in Tanzania have continued to play the major role in reshaping the economy of the nation. With the emergence of knowledge based economy many firm have changed their way of doing business instead of relying more on physical capital they have shifted to intellectual capital. This is no exception for the banks operating in developing counties Tanzania included. Many studies have been done in the area of intellectual capital and its contribution to the value of the firm. This study sets out to extend the evidence by investigating the intellectual capital of banks operating in Tanzania for the period of four years from 2010 to 2013. Annual reports, especially the profit and loss accounts and balance sheets of the selected banks have been used to obtain the data. The study uses Value Added Intellectual Capital model (VAICTM) in determining intellectual capital and its three major components like Human Capital Efficiency (HCE) Structural capital efficiency (SCE) and Capital Employed Efficiency (CEE). The results revealed that Intellectual capital has a positive relationship with financial performance of banks operating in Tanzania and also when the VAICTM was divided into its three components it was discovered that the financial performance is positively related to Human capital efficiency and Capital employed efficiency but is negatively related to Structural capital efficiency.

scholarly journals Impact of Intellectual Capital on Corporate Performance

2020 ◽  
Vol 5 (6) ◽  
Author(s):  
Sedeaq Nassar
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Data Model ◽  
Value Added ◽  
Return On Assets ◽  
Return On Equity ◽  
Firm Financial Performance ◽  
Structural Capital ◽  
Capital Efficiency ◽  
The Relationship

The main objective of current study is to investigate the relationship between intellectual capital and corporate financial performance of 34 from 48 companies listed on Palestine Exchange (PEX) over the period of 2012-2018. Pulic’s method “Value Added Intellectual Coefficient (VAIC)” is utilized to measure the Intellectual Capital (IC), and three of traditional accounting tools involving; return on equity (ROE), return on assets (ROA), and earning per share (EPS) ratios is used as a proxy of firm financial performance. The findings of Panel data model show that human capital efficiency (HCE) is consider as the most effective element of intellectual capital in the issue of value creation than structural capital and capital employed. Moreover, VAIC shows a good relationship with financial performance represented by return on assets (ROA). In conclusion, Palestinian listed companies are still weakly used its intellectual capital' potentials in create value.

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