Clarifying the impact of corporate governance and intellectual capital on financial performance: A longitudinal study of Deutsche Bank (1957–2019)

Nawaz, Tasawar; Ohlrogge, Oliver

doi:10.1002/ijfe.2620

Cited by 23 publications

(24 citation statements)

References 27 publications

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“…A similar level was considered by Kianto, Andreeva, and Pavlov (2013) as quite significant, considering how many other issues affect competitive performance. The results are coherent with other studies examining the IC impact on financial performance (e.g., Neves & Proença, 2021;Yaseen & Al-Amarneh, 2021;Nawaz & Ohlrogge, 2022;Rehman, Aslam & Iqbal, 2022) and competitive performance measured by market share (e.g., Rehman, Aslam & Iqbal, 2022) although they applied research methodology. H2: Competitive performance has a moderator effect on the relationship between IC and financial performance.…”

Section: The Assessment Of the Structural Modelsupporting

confidence: 88%

“…Some authors add a fourth component connected with the influence of technology on the financial service industry (Shih, 2008). On the contrary, others use a synthetic measure to examine the IC efficiency, such as as HCE, SCE and RCE (Poh, Kilicman & Ibrahim, 2018;Rehman, Aslam & Iqbal, 2022) or employ VAIC or other similar methods such as VAICTM to analyze the performance of banks, focusing on IC and its influence on different aspects of banks' market position (Cabrita & Vaz, 2006, Mavridis, 2005Alhassan & Asare, 2016;Goh, 2005;El-Bannany, 2008;Al-Musali & Ismail, 2014;Singh, Sidhu, Joshi & Kansal, 2016;Mohammed & Irbo, 2018;Umanto & Atmoko, 2018;Xu, Haris & Yao, 2019;Neves & Proença, 2021;Yaseen & Al-Amarneh, 2021) or base their research on case studies (Murthy & Mouritsen, 2011;Hosseini & Owlia, 2016;Nawaz & Ohlrogge, 2022). Measuring IC using a survey is still unique (Cabrita & Bontis, 2008;Curado, 2008;Mention & Bontis, 2013).…”

Section: Literature Review and Hypothesismentioning

confidence: 99%

“…ROA shows banks' ability to generate income using assets, while ROE assesses the financial return on a shareholder's investment. That is why those indexes are commonly used as financial performance measures (Al-Musali & Ismail, 2014;Poh, Kilicman, & Ibrahim, 2018;Soewarno & Tjahjadi, 2020;Neves & Proença, 2021;Saymeh, Arikat, Hashem, & Al-Khalieh, 2021;Nawaz & Ohlrogge, 2022).…”

Section: Literature Review and Hypothesismentioning

confidence: 99%

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The contribution of intellectual capital to banks' competitive and financial performance: The evidence from Poland

Klimontowicz¹,

Majewska²

2022

JEMI

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PURPOSE: The paper aims to investigate the contribution of intellectual capital to banks' competitive and financial performance. METHODOLOGY: The paper uses data retrieved from a research survey. The questionnaire on IC contribution to banks' competitive performance was applied to executive managers of retail banks operating in the Polish banking market. The data collected for the assessment of financial performance were retrieved from banks' annual reports and referred to each year from 2012 to 2019. The data were analyzed by Principal Axis Factor Analysis (PAF) and Partial Least Squares Structural Equation Modelling (PLS-SEM). FINDINGS: The results revealed that banks' competitive and financial performance depends on both the intellectual capital and environmental factors. The relation between financial performance and intellectual capital is positively mediated by competitive performance, and environmental factors can affect the strength of this relationship. The findings show that applying the resource-based theory might not be sufficient to gain a competitive advantage and sustainable market position in the case of banks. IMPLICATIONS: The results develop IC knowledge and prove the necessity to conduct systematic research on their importance for creating value for customers and gaining competitive advantage. They also provide direction for banks' decision-makers concerning factors that should be taken into account to create competitive advantage, market performance, and efficiency. The Polish banking market has transformed from undeveloped and non-competitive into a developed and competitive one during the last few decades. Thus, the results also have implications for other companies operating in transition markets as their competitiveness depends on understanding which factors should be the foundation for their market strategy and their competitiveness and efficiency to become a developed one. ORIGINALITY AND VALUE: The majority of the IC research concentrate on developed countries, and very little is known about developing and transition countries that were successful on their journey. Most of the research has focused on identifying and measuring IC components and the relationship between them. Usually, the research presents the state of the art and it is based on financial reports. However, the extent to which IC impacts competitive and financial performance in banking markets has been relatively rare. To the authors' best knowledge, this is the first study to examine empirically the relationship between intellectual capital, environment, competitive performance, and efficiency in a transformed banking market in Europe, which analyses the IC contribution over a few years' perspectives.

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Section: The Assessment Of the Structural Modelsupporting

confidence: 88%

Section: Literature Review and Hypothesismentioning

confidence: 99%

Section: Literature Review and Hypothesismentioning

confidence: 99%

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The contribution of intellectual capital to banks' competitive and financial performance: The evidence from Poland

Klimontowicz¹,

Majewska²

2022

JEMI

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“…Many studies have found that the company's failure to manage the company was caused by the structure and mechanism of GCG that did not work well, causing many irregularities. Many studies about GCG have been studied, studies [7], [19], [20], [22] explain that companies that are effective in implementing GCG will reduce the risk of companies experiencing financial distress. GCG variables often used are institutional ownership, size of the board and audit committee.…”

Section: B Good Corporate Governance Mechanismmentioning

confidence: 99%

The Effect of Good Corporate Governance Mechanisms, Financial Ratio, and Financial Distress: A Study on Financial Companies

Nurcahyono¹,

Sukesti²,

Haerudin³

2022

Proceedings of the 3rd International Conference of Business, Accounting, and Economics, ICBAE 2022, 10-11 August 2022, Purwoker

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The COVID-19 pandemic has significantly impacted the Indonesian economy, as indicated by the capital market's high volatility due to the business environment. The pandemic has caused companies to adjust their business activities which has an impact on decreasing productivity so that companies have the potential to go bankrupt. This study aims to predict the financial distress faced by mining companies by using predictors of good corporate governance mechanisms, operating cash flow, and leverage. The population of this study is mining companies listed on the Indonesia Stock Exchange in 2020 and 2021, with a purposive sampling type. The unit of analysis that we use is 91 annual reports with 140 financial companies. Analysis of the data used is multiple linear regression by testing the relationship between variables. Good corporate governance mechanisms that the company appropriately implements will prevent the company from financial difficulties because it acts as a controller. Operating cash flow and leverage can be good predictors of potential financial distress. Low operational cash flow and high leverage are early signals that the company is experiencing financial problems that will potentially go bankrupt in the long term.

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“…According to this hypothesis, external market pressures are forced to discipline inefficient boards, thereby improving the operational effectiveness of the acquired bank 8 . An increasing number of studies investigate the effects of board size and composition on bank performance (Adnan et al, 2011; Agoraki et al, 2010; Nawaz & Ohlrogge, 2022; Pi & Timme, 1993; Polyzos et al, 2018). Compared with stock banks, there is little literature on this subject for financial cooperatives.…”

Section: Brief Survey Of the Literaturementioning

confidence: 99%

Effects of consolidation of cooperative financial institutions in Japan: Evidence from meta‐frontier analysis

Yamori

Harimaya

2022

Int. J Fin Econ

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This study investigates the regional differences in how consolidation has affected the efficiency of Shinkin banks, a representative cooperative financial institution in Japan, using the stochastic meta‐frontier approach based on cost and profit functions. The findings support the quiet life hypothesis that a significant negative relationship exists between efficiency‐adjusted Lerner indices and cost efficiency. By contrast, the relation between market power and profit efficiency is consistently positive. Moreover, independent Shinkin banks not involved in mergers exhibit higher costs and profit efficiency than other banks, suggesting that mergers can deteriorate efficiency.

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Clarifying the impact of corporate governance and intellectual capital on financial performance: A longitudinal study of Deutsche Bank (1957–2019)

Cited by 23 publications

References 27 publications

The contribution of intellectual capital to banks' competitive and financial performance: The evidence from Poland

The contribution of intellectual capital to banks' competitive and financial performance: The evidence from Poland

The Effect of Good Corporate Governance Mechanisms, Financial Ratio, and Financial Distress: A Study on Financial Companies

Effects of consolidation of cooperative financial institutions in Japan: Evidence from meta‐frontier analysis

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