Intellectual Capital and Bank Risk in Vietnam—A Quantile Regression Approach

Nguyen, Dat T.; Le, Tu; Ho, Tin H.

doi:10.3390/jrfm14010027

Cited by 20 publications

(14 citation statements)

References 49 publications

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“…The empirical results from both models show that firm performance in Vietnam is significantly affected by the capital employed efficiency. This finding is consistent with previous studies (Nguyen et al, 2021; Zhang et al, 2021). However, Vietnamese firms have yet to tap into the full potential of structural capital efficiency through processes, patents, and goodwill (Vo & Tran, 2021).…”

Section: Empirical Results and Discussionsupporting

confidence: 94%

“…They conclude that intellectual capital significantly and positively contributes to the bank's performance in Vietnam. Nguyen et al (2021) examine the relationship between intellectual capital and risk-taking in the Vietnamese banking system from 2007 to 2019. They reveal that intellectual capital has an inversed U-shaped relationship with bank risk-taking.…”

Section: Corporate Governance Intellectual Capital and Firm's Perform...mentioning

confidence: 99%

“…However, to the best of our knowledge, there is very little research conducted to examine the relationship between intellectual capital and the performance of companies in Vietnam. Vo and Tran (2021), Nguyen et al (2021), Hoang et al (2020) consider that intellectual capital has a positive impact on firm performance in Vietnam. Besides, Tran et al (2020) also argue that corporate governance significantly affects a firm's intellectual capital in Vietnam.…”

Section: Introductionmentioning

confidence: 99%

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Does corporate governance moderate the relationship between intellectual capital and firm's performance?

Van

Hoang

Tran

2022

Knowl Process Manag

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Previous studies examined the relationship between intellectual capital and a firm's performance. However, the moderating role of corporate governance—a fundamental factor leading to improved firm performance and increased intellectual capital accumulation—has largely been ignored, particularly in an emerging market such as Vietnam. As such, this study examines the moderating role of corporate governance on the intellectual capital–performance nexus in Vietnam. This study uses a sample of 45 listed firms in Vietnam from 2011 to 2018. The generalized method of moments (GMM) technique is utilized in this paper to enhance the robustness of the findings. The modified value‐added intellectual coefficient (MVAIC) model is used to measure intellectual capital. A firm's performance is proxied by both returns on assets and equity. Our results indicate that intellectual capital components such as capital employed efficiency, human capital efficiency and structural capital efficiency provide a significant and positive effect on a firm's performance. In addition, the results reveal that the inclusion of corporate governance as a moderating factor affects the relationship between intellectual capital and a firm's performance in Vietnam. Findings from this paper provide a valuable framework and implications for executives and policymakers in creating and managing intellectual capital within the Vietnamese context. Besides, improving corporate governance is critical to improving intellectual capital accumulation. To the authors' best knowledge, our literature review indicates that this is the first empirical study that examines the relationship between intellectual capital and a firm's performance using corporate governance as a moderating factor in Vietnam.

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Section: Empirical Results and Discussionsupporting

confidence: 94%

Section: Corporate Governance Intellectual Capital and Firm's Perform...mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Does corporate governance moderate the relationship between intellectual capital and firm's performance?

Van

Hoang

Tran

2022

Knowl Process Manag

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“…Tran et al (2020) confirm a significant relationship between CG and intellectual capital in Vietnam. Nguyen et al (2021) assert that intellectual capital plays a crucial role in a firm’s performance in Vietnam. However, limited evidence has been found to contribute to the understanding of linkages between intellectual capital, CG and CSR (Buallay and Hamdan, 2019; Altuner et al , 2015).…”

Section: Introductionmentioning

confidence: 99%

The interrelationship between intellectual capital, corporate governance and corporate social responsibility

Van

Hoang

et al. 2022

SRJ

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Purpose Intellectual capital, corporate governance (CG) and corporate social responsibility (CSR) are generally considered three essential pillars to enhance firms’ performance in the developed world. However, in developing countries such as Vietnam, these pillars have not received sufficient attention from practitioners. In addition, this study aims to investigate the interrelationship between these three essential pillars and their combined effects, in the Vietnamese context. Design/methodology/approach This study uses data collected from the annual reports of the largest listed banks in Vietnam from 2011 to 2018. Intellectual capital is measured using a modified value-added intellectual coefficient model. CG is proxied by board remuneration. This study measures CSR using the ratio between charitable contributions and profit before tax. In addition, this study uses the generalized method of moments to overcome several econometric problems exhibited in previous empirical studies. Findings Results indicate that CG and CSR have a positive impact on intellectual capital. Intellectual capital plays a moderating role in the relationship between CG and CSR. Moreover, CG and intellectual capital in the previous year significantly affect CG in the current year. Practical implications Based on the findings from this study, policy implications have emerged for bank executives and policymakers in formulating and implementing policy about the balance between intellectual capital accumulation, CG and CSR. Originality/value To the best of the authors’ knowledge, this is the first empirical study conducted to examine the interrelationship between intellectual capital, CG and CSR and their combined effects in emerging countries such as Vietnam.

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“…For relevant studies in the Vietnamese banking industry, the recent empirical results found by Le and Nguyen ( 2020 ) and Nguyen et al ( 2021 ) show that it is arguable whether IC has provided advantages for banks or not. Specifically, by employing the system GMM method, the findings of these authors prove that although VAIC and its components positively affect the profitability of banks and the role of VAIC, and HCE tends to be clearly evident in state-owned and foreign banks, these relationships may be inverse U-shaped, particularly in the cases of VAIC, CEE and HCE.…”

Section: Literature Reviewmentioning

confidence: 99%

Financial intermediation in banks and the key role of intellectual capital: new analysis from an emerging market

Nguyen

2023

J Financ Serv Mark

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Against the backdrop of global challenges and unprecedented events, intellectual capital is seen as the key to opening doors for banks to achieve competitiveness. Inspired by this issue, the paper explores the relationship between intellectual capital and one of the most important functions of banks, namely financial intermediation. The study uses the balanced panel data of 26 Vietnamese commercial banks collected directly from their audited financial statements between 2006 and 2020, and employs various regression analyses such as OLS, Fixed-effect, and the GMM method, in which the VAIC model is utilised as the measure of the intellectual capital of banks. The consistent evidence demonstrates that intellectual capital plays a key role in fostering this function of banks. Also, when dividing VAIC into three components, the empirical result indicates that capital employed efficiency is the most effective resource to enhance financial intermediation compared to human capital efficiency and structure capital efficiency. Furthermore, these findings seem to be clearer in small banks than in large ones, and remain unchanged during both crisis and non-crisis periods. Besides, in the crisis period, the evidence suggests that banks should strengthen their human capital efficiency, and structure capital efficiency should be taken into consideration. Therefore, this study provides a deep insight into the influences of intellectual capital on banking operations in emerging countries, where the development and sustainability of banks could ensure economic growth.

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Intellectual Capital and Bank Risk in Vietnam—A Quantile Regression Approach

Cited by 20 publications

References 49 publications

Does corporate governance moderate the relationship between intellectual capital and firm's performance?

Does corporate governance moderate the relationship between intellectual capital and firm's performance?

The interrelationship between intellectual capital, corporate governance and corporate social responsibility

Financial intermediation in banks and the key role of intellectual capital: new analysis from an emerging market

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