Intellectual Capital and Firm Performance of Commercial Banks in Malaysia

Malina Hanum Mohd Kamal, Rosfatihah Che Mat, Najihah Abdul Rahim, Norhusniyati Husin and Irwan Ismail

Asian Economic and Financial Review, 2012, vol. 2, issue 4, 577-590

Abstract: Intellectual capital is an important element of the theory explaining firm performance. The purpose of this paper is to determine the relationship between the level of intellectual capital efficiency in terms of Human Capital, Capital Employed and Structural Capital (VAIC) with the commercial banks performance in Malaysia from the traditional accounting based perspective that comprises of ROA and ROE. Overall results revealed the relationship between intellectual capitals with performance of 18 commercial banks in Malaysia. Additionally, the results showed significance impact of intellectual capital variables namely Value Added Capital Employed (VACA), Value Added Human Capital (VAHU) towards bank performance. It is suggested that intellectual capital do matters and should be linked to firm productivity. The study implies that the importance of intellectual capital should be emphasized not only to the commercial banks but also to the emerging market of Islamic banks in Malaysia or any other industries for future research.

Keywords: Intellectual Capital; Firm Performance; Value Added Intellectual Coefficient; Commercial Banks; Malaysia (search for similar items in EconPapers)
Date: 2012
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