The efficiency of GCC banks: the role of intellectual capital. Issue 3 (12th May 2020)

• Record Type: Journal Article
• Authors: Buallay, Amina; Hamdan, Allam Mohammed; Reyad, Sameh; Badawi, Sherine; Madbouly, Araby
• Is Part Of: European business review. Volume 32:Issue 3(2020)
• Page Start: 383
• Page End: 404
• Publication Date: 2020-05-12
• Subjects: Performance -- Banks -- GCC countries -- Intellectual capital efficiency; Industrial management -- Periodicals; Management -- Periodicals; Business -- Periodicals; 658.005
• DOI: 10.1108/EBR-04-2019-0053
• Languages: English
• ISSNs: 0955-534X

Abstract

Abstract : Purpose: This study aims to examine the impact of intellectual capital (IC) efficiency on bank's operational, financial and market performance. Design/methodology/approach: The study examined 59 banks for 5 years to ends up with 295 observations. The independent variable is the modified value added IC component; the dependent variables are performance indicators (return on assets [ROA], return on equity [ROE] and Tobin's Q [TQ]). Findings: The findings deduced from the empirical results demonstrate that there is a positive relationship between intellectual capital efficiency and financial performance (ROE) and market performance (TQ). Originality/value: The results of this study may give a wake-up call for banks to examine the reasons of imperfect relationship between the IC and asset efficiency (ROA).