تلخیص
The study examines the impact of intellectual capital on the financial performance of banks in Pakistan. Data is obtained from annual reports of banks. Value added Intellectual coefficient (VAIC) approach is employed to analyze the efficiency of banks. ROA is used to measure the financial performance of the banks. The intellectual capital (and its components human capital and structural capital) of banks have been analyzed and their impact on financial performance has been estimated using multiple regression techniques. The VAIC value of conventional banks is high as compare to Islamic banks. Human capital efficiency (HCE) is the main driver of the intellectual capital performance of banks operating in Pakistan. The findings show that VAIC is positively associated with ROA while three components of VAIC showed mix results on banks’ performance. This study could not take into account different types of banks operating in Pakistan like foreign banks, specialized banks and microfinance banks due to the limitation of the data. Future study should therefore further improve on the aspect of different types of banks. The VAIC approach may be useful for the banks and policy makers in a knowledge economy to integrate the intellectual capital in the decision making process. This is one of the first studies in Pakistan that explores the impact of intellectual capital on the financial performance of banks in Pakistan
Muhammad Tahir, Syed Quaid Ali Shah, Muhammad Mumtaz Khan, Muhammad Asim Afridi. (2018) Intellectual Capital and Financial Performance of Banks in Pakistan, The Dialogue, Volume 13, Issue 1.
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