Abstract
This study seeks to investigate the relationship between intellectual
capital and bank‘s performance in Pakistan. A sample of five major
Islamic Banks of Pakistan had taken for the period 2009-2014.
Multiple regression analysis is used to show the relationship of intellectual
capital and the bank‘s performance. The results suggest that the bank‘s
performance (ROA and ROE) is positively and significantly related to the
intellectual capital (Structural capital, Human capital and Capital employed
efficiency) of Pakistani Islamic Banks. Human capital efficiency and capital
employed efficiency show direct association with the bank‘s performance
whereas structural capital efficiency shows no relationship with the bank‘s
performance in Pakistan. Human capital efficiency is significantly and
positively related to ROA, ROE, asset turnover and EPS. Physical capital
employed efficiency of Islamic banks is significantly and inversely related to
ROA and asset turnover; however it is positively and significantly related to
ROE and EPS. Structural efficiency is significantly but inversely related to
ROA and earnings per share and shows no association with ROE and EPS
Muhammad Mahmmod Shah Khan, Farah Yasser, Dr. Talat Hussain. (2015) Intellectual Capital and Financial Performance: An Evaluation of Islamic Banks in Pakistan, Islamic Banking and Finance Review, Volume 2, Issue 1.
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