Modelling the impact of intellectual capital on financial performance: a case of Russian banking companies

Nisarg Joshi and Dhyani Mehta ()
Additional contact information
Nisarg Joshi: Nirma University, Gujarat, India
Dhyani Mehta: Pandit Deendayal Energy University, Gujarat, India

R-Economy, 2024, vol. 10, issue 2, 227-248

Abstract: Relevance. The knowledge economy in developing countries like Russia and India is dynamic and ever-changing. By researching the relationship between intellectual capital and financial performance, banks can create plans to manage their intangible assets efficiently, improving their financial performance, spur more innovation, and providing them with a competitive advantage. Research objective. This research aims to study the impact of the intellectual capital of the top banking companies in Russia and India on their financial performance. This research will investigate the potential effects of the following knowledge economy quirks on the correlation between financial performance and intellectual capital. Data and Methods. This study includes a sample of the top eleven Russian banking companies constituents of the Moscow index and equivalent number of Indian Banking companies constituents of National Stock Exchange of India from 2011 to 2022. PLS-PM analysis has been employed to identify the intellectual capital components that predict the firm’s performance and the effect of intellectual capital components on the firm’s financial performance. Results. The path model results validate the model fit and provide compelling evidence for the Intellectual Capital framework’s theoretical underpinnings. The study offers evidence from the Russian and the Indian banking sector that intellectual capital significantly impacts performance. Conclusion. It is focused on the new strategy the government has chosen regarding the associated intellectual property. Even if the financial structures under analysis are sound, impending competitive challenges will compel banking companies to pay more attention to intellectual capital. The knowledge stock derived from intellectual capital, as a proxy variable for a global perspective on banking intellectual capital, is the most substantial scientific evidence regarding intellectual capital (IC) in the banking industry.

Keywords: banking companies; VAIC; PLS-PM; intellectual capital; firm performance (search for similar items in EconPapers)
JEL-codes: G21 J24 O34 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.urfu.ru/index.php/r-economy/article/view/7917 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aiy:journl:v:10:y:2024:i:2:p:227-248

DOI: 10.15826/recon.2024.10.2.014

Access Statistics for this article

R-Economy is currently edited by Irina Turgel

More articles in R-Economy from Ural Federal University, Graduate School of Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by Irina Turgel ().