Corporate governance vs management of the intellectual capital of banks: Structural equation modeling (SEM)

Abstract

ObjectiveThe aim of this paper is to identify basic relationships between intellectual capital efficiency in banks, their corporate governance, and their financial performance. Examining these relationships seems justified as up to now the topic has been investigated relatively rarely.MethodsStructural Equation Modeling was used to accomplish the research objective. The structure of the research tool and the subject matter analysed in the study were drawn from reviews of the subject literature. Quarterly data for the years 2007–2017 published in reports and financial statements of banks listed on the Warsaw Stock Exchange formed the basis for the analysis.FindingsThe results of the conducted analysis do sustain the postulated hypothesis that corporate governance and intellectual capital of banks listed on the Warsaw Stock Exchange have a concurrent, positive impact on financial performance At the same time the relationship between intellectual capital efficiency and (selected features of) corporate governance turned out to be ambiguous and statistically insignificant.Practical implicationThe proposed model of structural equations may be used to identify the relationship in question, or its lack, in other areas of organisational activity. Furthermore, the study results provide guidelines for executives with respect to intellectual capital management and corporate governance.Originality/valueSEM is a new, original proposal for measurement and presentation of the relationship between intellectual capital efficiency in banks, their corporate governance, and their financial performance.

Mediating Factorial Model of Corporate Image in the Face of COVID-19

“…In contrast, the financial execution model only includes intellectual capital and corporate governance as latent and determining variables (Smuda, 2019). Very different from the model of intangible assets in which governance and intellectual capital are concomitant, but with a low correlation to be able to anticipate growth.…”