The impact of intellectual capital on the profitability of commercial banks in Serbia
The subject of the research in this paper is the impact of intellectual capital efficiency on the profitability of commercial banks in the Republic of Serbia. The efficiency of commercial banks’ intellectual capital was measured by the created value added in the observed period, using the V...
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| Format: | Article |
| Language: | English |
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Faculty of Economics, Belgrade
2018-01-01
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| Series: | Ekonomski Anali |
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| Online Access: | http://www.doiserbia.nb.rs/img/doi/0013-3264/2018/0013-32641816085R.pdf |
| Summary: | The subject of the research in this paper is the impact of intellectual
capital efficiency on the profitability of commercial banks in the Republic
of Serbia. The efficiency of commercial banks’ intellectual capital was
measured by the created value added in the observed period, using the Value
Added Intellectual Coefficient methodology (VAIC). Empirical analysis was
carried out using econometric analysis of panel data for 27 banks that were
operating in the banking sector of the Republic of Serbia in the period
2008-2016. The results of the analysis show that the significance of the
impact of the efficient use of intellectual capital on the profitability of
banks operating in Serbia depends on the selected profitability measure.
When ROA is chosen as an indicator of profitability the bank’s level of
indebtedness determines the sign of this influence, so at higher levels of
indebtedness efficient use of intellectual capital negatively affects the
profitability of the bank. On the other hand, in this case the size of the
bank does not significantly affect the dependence of the bank’s
profitability on the efficient use of its intellectual capital. If ROE is a
measure of the profitability of banks the efficient use of intellectual
capital has no significant impact on banks’ profitability. |
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| ISSN: | 0013-3264 1820-7375 |