The Effect of Intellectual Capital on Financial Performance of Banks Listed in Tehran Stock Exchange

Ameneh Zarei (), Bagher Shamszade () and Zhale Zarei ()
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Ameneh Zarei : Department of Accounting, Hamadan Branch, Islamic Azad University
Bagher Shamszade : Faculty of Economics and Social Sciences, Bu-Ali Sina University
Zhale Zarei : Monetary and Banking Research Institute (MBRI), Central Bank of the Islamic Republic of Iran (CBI)

Journal of Money and Economy, 2014, vol. 9, issue 4, 49-73

Abstract: The aim of this paper is to empirically investigate the effect of Intellectual Capital (IC) and its components on financial performance of Iranian banks accepted in Tehran Stock Exchange (TSE). The financial performances were measured by return on equity (ROE), return on assets (ROA), assets turnover (ATO), and book to market ratio (MB). This research covers 14 banks listed in TSE over the period 2004 - 2013 and use VAIC method as a quantifiable measure to assess the intellectual capital and its components. The result of regression analysis shows that structural capital and human capital efficiency have positive and significant effects on banks' financial performance. Also, the first lag of physical capital efficiency has positive and significant effect on ROA, ROE, and ATO, but, its effect on MB is not significant. Finally, estimations show that the effect of IC on the financial performance of banks is positive and significant.

Keywords: Intellectual capital; Return on equity; Return on assets; Book to market ratio; Assets turnover (search for similar items in EconPapers)
JEL-codes: E03 E22 E44 (search for similar items in EconPapers)
Date: 2014
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