Does intellectual capital efficiency matter for banks’ performance and risk-taking behavior?
The aim of this study is to investigate whether a bank’s intellectual capital (IC) efficiency impacts its performance and risk-taking behavior in an emerging economic country. The study used panel data (unbalanced) of 30 commercial banks in Bangladesh during 2002–2019. Data were analyzed through the...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2022-12-01
|
| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2022.2127484 |
| _version_ | 1797989069618151424 |
|---|---|
| author | Changjun Zheng Md Nazmul Islam Najmul Hasan Md. Abdul Halim |
| author_facet | Changjun Zheng Md Nazmul Islam Najmul Hasan Md. Abdul Halim |
| author_sort | Changjun Zheng |
| collection | DOAJ |
| description | The aim of this study is to investigate whether a bank’s intellectual capital (IC) efficiency impacts its performance and risk-taking behavior in an emerging economic country. The study used panel data (unbalanced) of 30 commercial banks in Bangladesh during 2002–2019. Data were analyzed through the use of the generalized method of moments (GMM) by Eviews-10. The pragmatic results demonstrate that IC efficiency (HCE), RCE and SCE have significant positive (negative) impacts both on the bank’s performance and risk-taking behavior, this finding is similar to resource-based theory. Moreover, adequate capital and liquidity position improves bank performance, but leverage, size, and non-performing loans to total loan have a significant negative impact on bank performance. In addition, the macro-economic variable growth (i.e., gross domestic product) rate of inflation and financial crisis year negatively impacts both bank performance and risk-taking behavior. The panel dataset in this research is restricted to the Bangladeshi banking sector, which restricts the study’s generalizability. Bank performance in Bangladesh is unaffected by leverage, loan size, and the proportion of non-performing loans to total loans. Regulatory authorities, managers and policymakers should step up their surveillance of banks and other financial institutions when the GDP inflation rate and financial crisis year have a negative impact on both bank performance and risk-taking behavior. |
| first_indexed | 2024-04-11T08:14:22Z |
| format | Article |
| id | doaj.art-0100731e1b0b432daffca3ed4b3d2d19 |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-04-11T08:14:22Z |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-0100731e1b0b432daffca3ed4b3d2d192022-12-22T04:35:14ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2127484Does intellectual capital efficiency matter for banks’ performance and risk-taking behavior?Changjun Zheng0Md Nazmul Islam1Najmul Hasan2Md. Abdul Halim3School of Management, Huazhong University of Science and Technology, Wuhan 430074, P.R. ChinaSchool of Management, Huazhong University of Science and Technology, Wuhan 430074, P.R. ChinaBRAC Business School, BRAC University, Dhaka-1212 BangladeshDepartment of Business Administration, Mawlana Bhashani Science and Technology University, Santosh, 1902, BangladeshThe aim of this study is to investigate whether a bank’s intellectual capital (IC) efficiency impacts its performance and risk-taking behavior in an emerging economic country. The study used panel data (unbalanced) of 30 commercial banks in Bangladesh during 2002–2019. Data were analyzed through the use of the generalized method of moments (GMM) by Eviews-10. The pragmatic results demonstrate that IC efficiency (HCE), RCE and SCE have significant positive (negative) impacts both on the bank’s performance and risk-taking behavior, this finding is similar to resource-based theory. Moreover, adequate capital and liquidity position improves bank performance, but leverage, size, and non-performing loans to total loan have a significant negative impact on bank performance. In addition, the macro-economic variable growth (i.e., gross domestic product) rate of inflation and financial crisis year negatively impacts both bank performance and risk-taking behavior. The panel dataset in this research is restricted to the Bangladeshi banking sector, which restricts the study’s generalizability. Bank performance in Bangladesh is unaffected by leverage, loan size, and the proportion of non-performing loans to total loans. Regulatory authorities, managers and policymakers should step up their surveillance of banks and other financial institutions when the GDP inflation rate and financial crisis year have a negative impact on both bank performance and risk-taking behavior.https://www.tandfonline.com/doi/10.1080/23322039.2022.2127484Intellectual capitalbank performanceriskcommercial banksBangladesh |
| spellingShingle | Changjun Zheng Md Nazmul Islam Najmul Hasan Md. Abdul Halim Does intellectual capital efficiency matter for banks’ performance and risk-taking behavior? Cogent Economics & Finance Intellectual capital bank performance risk commercial banks Bangladesh |
| title | Does intellectual capital efficiency matter for banks’ performance and risk-taking behavior? |
| title_full | Does intellectual capital efficiency matter for banks’ performance and risk-taking behavior? |
| title_fullStr | Does intellectual capital efficiency matter for banks’ performance and risk-taking behavior? |
| title_full_unstemmed | Does intellectual capital efficiency matter for banks’ performance and risk-taking behavior? |
| title_short | Does intellectual capital efficiency matter for banks’ performance and risk-taking behavior? |
| title_sort | does intellectual capital efficiency matter for banks performance and risk taking behavior |
| topic | Intellectual capital bank performance risk commercial banks Bangladesh |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2022.2127484 |
| work_keys_str_mv | AT changjunzheng doesintellectualcapitalefficiencymatterforbanksperformanceandrisktakingbehavior AT mdnazmulislam doesintellectualcapitalefficiencymatterforbanksperformanceandrisktakingbehavior AT najmulhasan doesintellectualcapitalefficiencymatterforbanksperformanceandrisktakingbehavior AT mdabdulhalim doesintellectualcapitalefficiencymatterforbanksperformanceandrisktakingbehavior |