Purpose-The purpose of this paper is to empirically examine the effect of intangible resources i.e. intellectual capital (IC) on financial performance of 64 Islamic financial institutions (IFIs) operating in eighteen different countries for the period 2007-2011, while controlling for firm-specific variables viz. bank-size, level of risk, listing status, and firmcomplexity. Design/methodology/approach-The required data to calculate different constituents of IC is derived from Bankscope database. Value Added Intellectual Coefficient (VAIC) methodology devised by Pulic is used to determine the impact of IC on financial performance of IFIs. Findings-Results indicate a significant positive relationship between Value Added Intellectual Coefficient (VAIC) and accounting performance based on ROA. The results further indicate a significant positive relationship between accounting performance and capital employed efficiency (CEE) and human capital efficiency (HCE), but no significant relationship with regards to structural capital efficiency (SCE). Overall, the results suggest that value creation capability of IFIs is highly influenced by HCE and CEE. Research limitations-The main limitation of the present study lies in its methodological tool, the VAIC methodology, which has been criticised by some researchers as not really measuring IC. Despite the inherent limitation of the VAIC methodology which relies on secondary data published in annual reports, it is still considered by some researchers as one of the best available tool to measure firms' IC in the absence of access to detailed internal information on IC. Practical implications-The findings may serve as a useful input for Islamic bankers in managing their investments in IC within their institutions. Originality/value-The main contribution of this paper is to use a previously little studied area, Islamic banking and finance, to identify the effect of intellectual capital on performance.

This paper offers novel insight into the Islamic banking business model by considering the effect of investments in human capital and corporate governance features on the market performance of Islamic banks. Based on a sample of 47 banks (30 full-fledged Islamic banks and 17 Islamic Shariah-windows) operating in different regions during the 2005-2010 period, and controlling for firm-specific characteristics, this paper finds investments in human capital to have a significant positive impact on the market value in the pre-and post-financial crisis period. Based on a market measure, this paper finds board size and CEO power to have a significant positive impact, while the size of Shariah Supervisory Board (SSB) has the opposite effect on market performance. The results further reveal that the Islamic banking sector is not a homogeneous group, with full-fledged Islamic banks having lax corporate governance mechanisms and large size, while their counterparts, Islamic Shariah-windows, having strong corporate governance mechanisms tend to invest more in human capital to yield positive market value. Overall, the analysis suggests that the financial crisis may have further spurred the impact of investments in human capital on the market performance.

Purpose-The purpose of this paper is to empirically examine the effect of investments in organizational resources and corporate governance features on market-based performance of Islamic banks (IBs). Design/methodology/approach-The required data to calculate different constituents of banks' investment strategies and governance mechanism is hand collected from 268 annual reports. Different regression models are used to determine the impact of investment in human and structural capital and corporate governance features on market performance of IBs. Findings-The paper finds investments in knowledge resources (human capital, in particular) to have a significant positive impact on the market value of IBs. The results further reveal that IBs' strategy to rely on long-term human capital accumulation can be seen as idiosyncratic problem-solving knowledge capital. Based on market measure, the paper finds role duality to have a significant positive impact while size of advisory board to have the opposite effect on market value. Research limitations-This study include IBs only and ignore other Islamic financial services providers such as Takaful (insurance) companies. The study leaves this chasm to be filled by the future researchers. Practical implications-The findings may serve as a useful input for both Islamic bankers and regulators to apply knowledge management in their institutions. Furthermore, the dominant role of human capital also provides insight to managers with respect to business performance levers. Originality/value-The main contribution of this paper is to provide insight into the Islamic bank business model using a unique hand collected data set, to identify the effect of investments in organizational resources and bank governance on market value in pre-, during-and after-financial crisis.

This paper empirically investigates whether intellectual capital (IC) and shariah governance jointly affect the economic performance of Islamic banks (IBs). In contrast to prior research, this paper disaggregate IC and corporate governance features and examine whether the two are jointly related to economic performance. These relationships are further explored before, during and after the financial crisis based on a sample of 64 Islamic banks operating in different regions during the period 2007–2014. The required data to calculate different constituents of IC efficiency and governance mechanism is hand collected from 512 annual reports. After controlling for other corporate governance and bank‐specific characteristics (operational type, bank size, listing status, risk, type of auditor, accounting standard and region), we find both intellectual capital efficiency and shariah governance proxies (size and dominance of prominent scholars of shariah supervisory board) to have a significant positive relationship with accounting measure of performance. However, based on market performance measure, only one proxy for shariah governance mechanism, that is, prominent scholars on SSB, is found to be significant but in the negative direction. These results provide important insights into the relationship between IC efficiency, corporate governance and performance in Islamic banking business model and have policy and practical implications.

This paper empirically examines the impact of intellectual capital (IC) and Shariah governance on economic performance of 47 Islamic banks (IBs) operating in the Gulf Cooperation Council (GCC) region in pre- and post-financial crisis period. The analysis suggests that higher IC efficiency helps IBs to improve their odds of survival at all times i.e. before- and after-crisis. Further, higher IC efficiency helps IBs to maintain their profitability i.e. ROA and market valuation i.e. Tobin’s Q at all times. Arguably, knowledge-resources i.e. IC is the main line of defence for IBs against negative shocks. Lastly, the study reveals that Shariah governance alone may fall short in explaining the growth trends in Islamic finance industry. Keywords: Intellectual Capital; Shariah Governance; Financial Crisis; Islamic Worldview; Economic Performance.

This article analyses the impact of chief executive officer's (CEO) educational background, that is, business degree (an MBA) on corporate strategies. In essence, the study tests how differences in educational backgrounds, MBACEOs vis-à-vis non-MBACEOs, determine their strategic choices pertaining to financial inclusion. The study evaluates this relationship in the third-sector, faith-based charity organizations (FCOs) context. Using a longitudinal sample of FCOs operating in a developing Muslim-majority country, this paper reports that CEO's educational background, that is, an MBA degree matters for financial inclusion. These findings demonstrate how CEO's educational background shape the strategic posture of third-sector organizations such as the FCOs. Additionally, the interaction effects further suggest that MBACEOs derive their imputes from robust sutural positions within the organization such as role duality, founder and internally hired CEO status. Results reported in this study have import economic and policy implications.

This article empirically examines the nexuses between corporate governance, intangible resources, CEO traits, and financial performance. In contrast to prior research, this study examines these relationships in a longitudinal manner focusing on Deutsche Bank for the 1957-2019 period. To the best of our knowledge, this study is the first of its kind. Based on a novel hand collected dataset, our analysis suggests a significant positive relationship between intangible assets i.e., intellectual capital efficiency and financial performance measured by, return on assets (ROA) and return on equity (ROE). Our results further suggest that human capital efficiency drive the financial performance of Deutsche Bank at all times especially, during the economic malaise periods, suggesting that human capital is the main source of profitability for the Deutsche Bank. Additional results suggest that larger board size diminishes the impact of intangible resources on financial performance when the former CEO assumes board's chairmanship. Finally, our results suggest that CEO's education quality is an important determinant of financial performance during the crisis. Results observed in this study have important economic and policy implications for banks operating in the similar environments.

The main contribution of this paper is to report on the impact of intellectual capital (IC) on financial performance of Islamic banks operating in the United Kingdom (UK). Two distinct measures, return on average assets (ROAA) and return on average equity (ROAE) are used to measure the financial performance. The paper also controls for number of employees and bank size. Results based on the regression analysis suggest that IC efficiency proxied by the value added intellectual coefficient (VAIC) relates positively with financial performance of Islamic banks in the UK. The analysis further suggests that bank size and number of employees equally contribute in banks' achieving higher financial performance. Additionally, the paper further ghettoises sub-components of IC namely; capital employed, human capital and structural capital to analyse the discrete impact of these IC constituents on financial performance. The analysis of the sub components suggests a positive relationship between physical and financial capital employed efficiency, human capital efficiency and performance.