TY - JOUR
T1 - Intellectual capital performance in the financial sector
T2 - Evidence from China, Hong Kong, and Taiwan
AU - Nazir, Muhammad Imran
AU - Tan, Aaron
AU - Nazir, Muhammad Rizwan
N1 - Publisher Copyright:
© 2020 The Authors. International Journal of Finance & Economics published by John Wiley & Sons Ltd.
Copyright:
Copyright 2021 Elsevier B.V., All rights reserved.
PY - 2021/10/1
Y1 - 2021/10/1
N2 - It is no doubt that successful organizations tend to be those that persistently innovate, believing on new technologies and emphasizing on abilities and knowledge of their employees. Knowledge has become one of the most imperative intangible assets of financial institutions in recent years. The aspiring organizations have recognized that Intellectual Capital Efficiency is important in promoting the performance of financial institutions. This paper tests the relationship between intellectual capital and performance using a sample of 76 financial institutions from Mainland China, Hong Kong, and Taiwan over the period 2006–2016. The results show that intellectual capital efficiency has a significant and positive impact on the profitability of financial institutions, while human capital and structural capital are not significantly related to the performance of financial institutions in Taiwan and Hong Kong. The present research extends the knowledge of intellectual capital between managers, academicians, and highlights its contribution to the value creation. These results determine that the financial institutions need to emphasize on the elements of intellectual capital, to enhance the best financial performances in these countries.
AB - It is no doubt that successful organizations tend to be those that persistently innovate, believing on new technologies and emphasizing on abilities and knowledge of their employees. Knowledge has become one of the most imperative intangible assets of financial institutions in recent years. The aspiring organizations have recognized that Intellectual Capital Efficiency is important in promoting the performance of financial institutions. This paper tests the relationship between intellectual capital and performance using a sample of 76 financial institutions from Mainland China, Hong Kong, and Taiwan over the period 2006–2016. The results show that intellectual capital efficiency has a significant and positive impact on the profitability of financial institutions, while human capital and structural capital are not significantly related to the performance of financial institutions in Taiwan and Hong Kong. The present research extends the knowledge of intellectual capital between managers, academicians, and highlights its contribution to the value creation. These results determine that the financial institutions need to emphasize on the elements of intellectual capital, to enhance the best financial performances in these countries.
KW - Financial Sector
KW - Performance
KW - Intellectual Capital
KW - Greater China Region
KW - VAIC
UR - http://www.scopus.com/inward/record.url?scp=85088234950&partnerID=8YFLogxK
U2 - 10.1002/ijfe.2110
DO - 10.1002/ijfe.2110
M3 - Article
VL - 26
SP - 6089
EP - 6109
JO - International Journal of Finance and Economics
JF - International Journal of Finance and Economics
SN - 1076-9307
IS - 4
ER -