Empirical linkage of intellectual capital and performance of islamic banks
With the eminence of the era of knowledge-based economies, the concept of intellectual capital (IC) is of vital importance for organisations to survive in these vigorous environments. As one of the knowledge intensive sectors, there is no exception to banking institutions in enhancing their intellec...
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Blue Eyes Intelligence Engineering and Sciences Publication
2019
|
| Subjects: | |
| Online Access: | http://eprints.utm.my/91170/1/SarahAthirahSaruchi2019_EmpiricalLinkageofIntellectualCapital.pdf |
| _version_ | 1796865174760587264 |
|---|---|
| author | Saruchi, S. A. Zamil, N. A. M. Basiruddin, R. Rasid, S. Z. A. Ahmad, N. F. G. |
| author_facet | Saruchi, S. A. Zamil, N. A. M. Basiruddin, R. Rasid, S. Z. A. Ahmad, N. F. G. |
| author_sort | Saruchi, S. A. |
| collection | ePrints |
| description | With the eminence of the era of knowledge-based economies, the concept of intellectual capital (IC) is of vital importance for organisations to survive in these vigorous environments. As one of the knowledge intensive sectors, there is no exception to banking institutions in enhancing their intellectual capital efficiency to the forefront especially for Islamic banks (IBs) that have to compete with the firmlyestablished conventional banks. Accordingly, this study intends to measure the relationship between intellectual capital efficiency and banks’ performance. In total, 59 Islamic banks are selected and their audited annual reports are compiled from the banks’ websites respectively from year 2006-2017. Value-added intellectual coefficient (VAIC) are applied in measuring IC efficiency. The findings provide empirical evidences of positive relationship between IC efficiency and banks performance, nonetheless, when decomposes into human capital efficiency (HCE), structural capital efficiency (SCE) and capital employed efficiency (CEE), only human capital efficiency shows significant positive relationship with performance of the banks while the other two components show significant negative linkage with bank performance. Furthermore, due to criticisms towards VAIC method, this study using modified value-added intellectual capital coefficient (MVAIC) and found that MVAIC has significant positive relationship with bank performance while relational capital as additional variable in MVAIC regression model has no significant effect with bank performance. This study provides better insights on the importance of utilisation of IC by banking institutions particularly for Islamic banks. |
| first_indexed | 2024-03-05T20:52:57Z |
| format | Article |
| id | utm.eprints-91170 |
| institution | Universiti Teknologi Malaysia - ePrints |
| language | English |
| last_indexed | 2024-03-05T20:52:57Z |
| publishDate | 2019 |
| publisher | Blue Eyes Intelligence Engineering and Sciences Publication |
| record_format | dspace |
| spelling | utm.eprints-911702021-06-21T08:40:37Z http://eprints.utm.my/91170/ Empirical linkage of intellectual capital and performance of islamic banks Saruchi, S. A. Zamil, N. A. M. Basiruddin, R. Rasid, S. Z. A. Ahmad, N. F. G. HF Commerce With the eminence of the era of knowledge-based economies, the concept of intellectual capital (IC) is of vital importance for organisations to survive in these vigorous environments. As one of the knowledge intensive sectors, there is no exception to banking institutions in enhancing their intellectual capital efficiency to the forefront especially for Islamic banks (IBs) that have to compete with the firmlyestablished conventional banks. Accordingly, this study intends to measure the relationship between intellectual capital efficiency and banks’ performance. In total, 59 Islamic banks are selected and their audited annual reports are compiled from the banks’ websites respectively from year 2006-2017. Value-added intellectual coefficient (VAIC) are applied in measuring IC efficiency. The findings provide empirical evidences of positive relationship between IC efficiency and banks performance, nonetheless, when decomposes into human capital efficiency (HCE), structural capital efficiency (SCE) and capital employed efficiency (CEE), only human capital efficiency shows significant positive relationship with performance of the banks while the other two components show significant negative linkage with bank performance. Furthermore, due to criticisms towards VAIC method, this study using modified value-added intellectual capital coefficient (MVAIC) and found that MVAIC has significant positive relationship with bank performance while relational capital as additional variable in MVAIC regression model has no significant effect with bank performance. This study provides better insights on the importance of utilisation of IC by banking institutions particularly for Islamic banks. Blue Eyes Intelligence Engineering and Sciences Publication 2019-05 Article PeerReviewed application/pdf en http://eprints.utm.my/91170/1/SarahAthirahSaruchi2019_EmpiricalLinkageofIntellectualCapital.pdf Saruchi, S. A. and Zamil, N. A. M. and Basiruddin, R. and Rasid, S. Z. A. and Ahmad, N. F. G. (2019) Empirical linkage of intellectual capital and performance of islamic banks. International Journal of Engineering and Advanced Technology, 8 (5). pp. 677-684. ISSN 2249-8958 http://www.dx.doi.org/10.35940/ijeat.E1095.0585C19 DOI: 10.35940/ijeat.E1095.0585C19 |
| spellingShingle | HF Commerce Saruchi, S. A. Zamil, N. A. M. Basiruddin, R. Rasid, S. Z. A. Ahmad, N. F. G. Empirical linkage of intellectual capital and performance of islamic banks |
| title | Empirical linkage of intellectual capital and performance of islamic banks |
| title_full | Empirical linkage of intellectual capital and performance of islamic banks |
| title_fullStr | Empirical linkage of intellectual capital and performance of islamic banks |
| title_full_unstemmed | Empirical linkage of intellectual capital and performance of islamic banks |
| title_short | Empirical linkage of intellectual capital and performance of islamic banks |
| title_sort | empirical linkage of intellectual capital and performance of islamic banks |
| topic | HF Commerce |
| url | http://eprints.utm.my/91170/1/SarahAthirahSaruchi2019_EmpiricalLinkageofIntellectualCapital.pdf |
| work_keys_str_mv | AT saruchisa empiricallinkageofintellectualcapitalandperformanceofislamicbanks AT zamilnam empiricallinkageofintellectualcapitalandperformanceofislamicbanks AT basiruddinr empiricallinkageofintellectualcapitalandperformanceofislamicbanks AT rasidsza empiricallinkageofintellectualcapitalandperformanceofislamicbanks AT ahmadnfg empiricallinkageofintellectualcapitalandperformanceofislamicbanks |