Cross-country comparison of intellectual capital performance of commercial banks in Asian economies

Young, Chaur Shiuh; Su, Hwan Yann; Fang, Shih Chieh; Fang, Shyh-Rong

doi:10.1080/02642060902793284

Cited by 77 publications

(71 citation statements)

References 25 publications

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“…A study conducted in Malaysia between 1997(Ting and Lean, 2009), which included financial institutions, showed that efficient use of IC correlated positively with ROA and profitability. In the banking sector, a study in eight Asian economies (Hong Kong, Indonesia, Malaysia, Philippines, Singapore, South Korea, Thailand, and Taiwan) between 1996 and 2001 identified IC among the main drivers of corporate performance regarding commercial banks (Young et al, 2009). The results show that human capital and capital employed were the main driving forces of value creation (i.e., measured by value added (VA)).…”

Section: Ic and Financial Performance In The Services Industrymentioning

confidence: 99%

Intellectual capital in Serbia’s hotel industry

Bontis

Janošević

Dženopoljac

2015

International Journal of Contemporary Hospitality Management

173

159

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Purpose – The purpose of this study is to determine whether intellectual capital (IC) creates value in the Serbian hotel industry. Specifically, this paper examines to what degree IC and its key components affect the financial performance of hotels compared to physical and financial capital. Design/methodology/approach – The sample included all of the hotels that operated as independent entities in Serbia during 2009–2012. value-added intellectual coefficient was used to measure the level of IC contribution to value creation, which was linked to various measures of financial performance, including operating profit, return on equity, return on assets, profitability and employee productivity. Findings – Results indicate that after controlling for firm size and leverage, employee productivity and, to some extent, profitability were affected by human and structural capital. The research confirms that the financial performance of hotels in Serbia remains predominantly influenced by efficient use of physical capital. Research limitations/implications – The study’s generalizability is limited to the hotel sector within Serbia. Practical implications – Senior managers in the hotel industry must recognize the importance of managing both the physical aspects of their hotels and the intangible resources embedded in their employees and processes. Originality/value – The findings will aid recognition of the importance of investing in IC in hotel industry as a crucial element of achieving competitive advantage in the information age. Moreover, the findings suggest that long-term growth should not rely solely on physical and financial assets.

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Section: Ic and Financial Performance In The Services Industrymentioning

confidence: 99%

Intellectual capital in Serbia’s hotel industry

Bontis

Janošević

Dženopoljac

2015

International Journal of Contemporary Hospitality Management

173

159

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“…It has also been applied to the banking sector for Poland by Śledzik (2013), in India by Narwal and Sushila (2015), for Islamic banks by Ousama and Fatima (2015) and for the Egyptian insurance market by Sherif and Elsayed (2016). Pulic (2004) himself as well as Nazari and Herremans (2007) have extended the model, Volkov (2012) has written a literary review on the model and its use and Young et al (2009) argue that the method can be used to describe the market value of a business much better than traditional financial indicators. Pulic (2008) also further examined the concept of intellectual capital efficiency and how VAIC TM can be used to study it.…”

Section: The Balance Sheetmentioning

confidence: 99%

Impact of Knowledge Capital on Performance of Firms: A Case of Firms in Finland

Lehtimäki¹,

LEHTIMAKI²

2016

EJBE

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“…IC has been classified into different components and measured by different methodologies [11,13,14,16,[22][23][24][25]. However, the advanced one, i.e., value-added intellectual coefficient (VAIC), developed by Pulic [24], is used in this study as a measurement of IC.Many studies have provided evidence regarding the relationship between IC and performance in different countries [4,18,[26][27][28][29][30][31][32][33][34][35][36][37][38][39][40][41][42][43][44]. However, evidence from financial institutions is still scarce.…”

mentioning

confidence: 99%

Intellectual Capital, Profitability, and Productivity: Evidence from Pakistani Financial Institutions

et al. 2019

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The idiosyncratic and knowledge-intense nature of the financial institutions requires them to rely more on intangible than on tangible resources. Over the past two decades, researchers have been motivated to embark on the relationship between intellectual capital (IC) and performance of financial institutions. Considering the knowledge-based intellect as a critical skill of this era, the current study examines the impact of IC on the performance of 111 Pakistani financial institutions (PFIs) over the period 2007-2018. Two IC measures, i.e., value-added intellectual coefficient (VAIC) and modified value-added intellectual coefficient (MVAIC), were applied to examine the impact of IC on profitability and productivity. Robust results from the fixed effect regression and generalized method of momentum affirm the inverted U-shaped relationship between IC and performance, suggesting that the increase in IC performance of PFIs increases their profitability and productivity up to a certain level, and after that, a further increase in IC performance decreases profitability and productivity. The results further suggest that human capital is the most influencing intellectual resource which produces higher intellectual efficiencies and increases the performance significantly. The results of this study are likely to be helpful for management, regulators, policy makers, and academics and provide insights into the importance of IC and suggest that the investment in the IC improves the sustainable performance to a certain extent.Sustainability 2019, 11, 3842 2 of 30 (IC) was first published in 1969 by John Kenneth Galbraith [8]; since then, the development and the existence of IC have been considered significant to the performance and sustainability of FIs [9].Modern FIs operate in a more challenging and dynamic environment due to technological advancement, continuous innovation in systems and processes, fast-changing customer preferences, and intense competition [10]. Unlike the nonfinancial sector, the operational success, growth, and sustainability of the financial sector do not rely more on tangible assets. As the financial sector provides a range of diversified financial services, therefore, it relies more on IC elements which are intangible in nature, like advanced systems, processes, skills, expertise, supportive culture, environment, knowledge, and information [4]. IC is believed to be a key force to value creation, hidden behind the book value of institutions [11,12]. In order to understand the concept of IC, it can be explained as the combination of structure capital and human capital [11,13]. Structure capital is based on customer and organization capital. Customer capital refers to potential intangibles such as knowledge embedded in suppliers, customers, related industry associations or the government [13]. Organization capital refers to intangibles such as knowledge embedded within the routines of an institution, systems and processes, supportive culture, information systems, transaction times, and procedural innova...

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Cross-country comparison of intellectual capital performance of commercial banks in Asian economies

Cited by 77 publications

References 25 publications

Intellectual capital in Serbia’s hotel industry

Intellectual capital in Serbia’s hotel industry

Impact of Knowledge Capital on Performance of Firms: A Case of Firms in Finland

Intellectual Capital, Profitability, and Productivity: Evidence from Pakistani Financial Institutions

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