Intellectual capital and firm performance nexus: evidence from Ethiopian private commercial banks

Abdulnasir Abdulmelike Mohammed and Mohammedhussen Mama Irbo

International Journal of Learning and Intellectual Capital, 2018, vol. 15, issue 3, 189-203

Abstract: The link between intellectual capital and firm performance showed mixed results that attracted the attention of researchers worldwide. As one of the under-researched geographical locations, Ethiopia's private commercial banks deserve the attention from the intellectual capital-performance relationship perspective. This study aimed at investigating the connection between intellectual capital and performance of private commercial banks. The researchers compiled data from audited annual reports released on respective websites of nine private commercial banks in Ethiopia from 2011-2015. Accordingly, the intellectual capital of those banks was calculated using value-added intellectual capital coefficient (VAIC^TM). The multiple regression results indicated that components of VAIC predicted banks performance better than VAIC alone. Besides, capital employed efficiency was found to have the most positive significant relationship (5.28) with ROA. Thus, Ethiopian private commercial banks are advised to capitalise on the efficient utilisation of their physical and financial capitals to increase their financial performance.

Keywords: banks; firm performance; VAIC; value-added intellectual capital coefficient. (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=94717 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijlica:v:15:y:2018:i:3:p:189-203

Access Statistics for this article

More articles in International Journal of Learning and Intellectual Capital from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().