Intellectual capital and financial performance: A study of the Turkish Banking Sector
By Nasif Ozkan, Sinan Cakan, Assoc. Dr. Murad Kayacan. Borsa Istanbul Review, 2017
398 citations recorded by the source corpus.
The purpose of this study is to analyze the relationship between the intellectual capital performance and financial performance of 44 banks operating in Turkey between 2005 and 2014. The intellectual capital performance of banks is measured through the value added intellectual coefficient (VAIC) methodology. The intellectual capital performance of the Turkish banking sector is generally affected by human capital efficiency (HCE). In terms of bank types, development and investment banks have the highest average VAIC. When VAIC is divided into its components, it can be observed that capital employed efficiency (CEE) and human capital efficiency (HCE) positively affect the financial performance of banks. However, CEE has more influence on the financial performance of banks compared to HCE. Therefore, banks operating in the Turkish banking sector should use their financial and physical capitals if they wish to reach a higher profitability level.
Subfields: Strategy and Management
View Paper: https://www.semanticscholar.org/paper/2b0fff699816e4b6653435f40492da24e9af4e5a
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Citations in the corpus
- The Role of a Manager’s Intangible Capabilities in Resource Acquisition and Sustainable Competitive Performance (2019, background): “In the current era of globalization, IC has been considered as an effective strategy of business firms that leads to financial performance [23] as well as significantly enhances non-financial performance [24], innovative performance [25] and competitive advantage [18].”
- Human capital efficiency and firm performance across sectors in an emerging market (2020, methodology): “Many studies have been conducted to examine the impact of human capital efficiency (using the VAIC model) and firm performance in developed countries (Ozkan et al., 2017; Sardo & Serrasqueiro, 2017).”
- The association between intellectual capital and financial performance in the Islamic banking industry (2019, result): “Although, other prior studies in Turkey, Malaysia and Australia found that the CEE was less effective in creating value in the banking sector (Goh, 2005; Joshi et al., 2010; Ozkan et al., 2016).”