Intellectual capital and bank profitability: New evidence from Vietnam

Le, Tu; Nguyen, Dat T.

doi:10.1080/23311975.2020.1859666

Cited by 31 publications

(39 citation statements)

References 60 publications

(86 reference statements)

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“…(2) Independent Variables. is study uses Pulic [17]'s VAIC model to measure IC efficiency of listed banks, consistent with Meles et al [34], Tran and Vo [36], Xu et al [38], Mondal and Ghosh [41], Vo and Tran [43], Ousama et al [62], and Le and Nguyen [63]. e VAIC model identifies banks with profitability in maximizing their economic performance in the process of value creation.…”

Section: Variablesmentioning

confidence: 74%

The Impact of Intellectual Capital on Bank Profitability during COVID‐19: A Comparison with China and Pakistan

Haris

Irfan

2022

Complexity

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This study aims to examine how the relationship between intellectual capital (IC) and bank profitability changed during COVID-19. Based on the data of 34 Chinese banks and 39 Pakistani banks, this study uses ordinary least squares (OLS) to examine this relationship during the COVID-19 era. Profitability is measured by return on assets (ROA) and return on equity (ROE), and IC is measured by the value added intellectual coefficient (VAIC) model. The findings show that, even during the COVID-19 pandemic, IC has managed to sustain its positive influence on bank profitability in China and Pakistan. Among IC components, our study reports that human capital is the only IC resource that continues to enhance ROA and ROE of Chinese and Pakistani banks during the pandemic period. Our study suggests that policymakers should pay more attention to IC resources, which has the potential to improve banks’ profitability even during crisis times.

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Section: Variablesmentioning

confidence: 74%

The Impact of Intellectual Capital on Bank Profitability during COVID‐19: A Comparison with China and Pakistan

Haris

Irfan

2022

Complexity

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“…In addition, human capital is positively associated with a firm's performance, materials capital, and financial capital in the short term. Le and Nguyen (2020) state that intellectual capital positively impacts bank profitability for state‐owned commercial banks. Hoang et al (2018) use exploratory factor analysis, confirmatory factor analysis and moderating analysis to confirm that human capital and social capital have positively associated with a firm's performance.…”

Section: Corporate Governance Intellectual Capital and Firm's Perform...mentioning

confidence: 99%

Does corporate governance moderate the relationship between intellectual capital and firm's performance?

Van

Hoang

Tran

2022

Knowl Process Manag

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Previous studies examined the relationship between intellectual capital and a firm's performance. However, the moderating role of corporate governance—a fundamental factor leading to improved firm performance and increased intellectual capital accumulation—has largely been ignored, particularly in an emerging market such as Vietnam. As such, this study examines the moderating role of corporate governance on the intellectual capital–performance nexus in Vietnam. This study uses a sample of 45 listed firms in Vietnam from 2011 to 2018. The generalized method of moments (GMM) technique is utilized in this paper to enhance the robustness of the findings. The modified value‐added intellectual coefficient (MVAIC) model is used to measure intellectual capital. A firm's performance is proxied by both returns on assets and equity. Our results indicate that intellectual capital components such as capital employed efficiency, human capital efficiency and structural capital efficiency provide a significant and positive effect on a firm's performance. In addition, the results reveal that the inclusion of corporate governance as a moderating factor affects the relationship between intellectual capital and a firm's performance in Vietnam. Findings from this paper provide a valuable framework and implications for executives and policymakers in creating and managing intellectual capital within the Vietnamese context. Besides, improving corporate governance is critical to improving intellectual capital accumulation. To the authors' best knowledge, our literature review indicates that this is the first empirical study that examines the relationship between intellectual capital and a firm's performance using corporate governance as a moderating factor in Vietnam.

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“…Because there appear some negative HCE values, this arrives at some negative VAIC values due to negative HCE values. Negative HCE value is explained by the fact that banks make a loss while still paying salaries (Le and Nguyen 2020a). The same reasons are also used to explain the negative values of CEE and SCE.…”

Section: Datamentioning

confidence: 99%

“…3 Furthermore, we run the same model when including LERN and INF separately and then the same results are obtained. 4 paying salaries (Le and Nguyen 2020a). The same reasons are also used to expla negative values of CEE and SCE.…”

Section: Datamentioning

confidence: 99%

Intellectual Capital and Bank Risk in Vietnam—A Quantile Regression Approach

Nguyen

2021

JRFM

Self Cite

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This study empirically presents evidence of nonlinearity and heterogeneity relation between intellectual capital and risk-taking for the Vietnamese banking system. We used quantile regression methods on a data set of 30 Vietnamese banks from 2007 to 2019. The results showed that bank insolvency was positively affected by its value-added intellectual coefficient (VAIC) at the upper quantiles (i.e., 80th and 90th), while the opposite was true for credit risk (i.e., 10th and 20th quantiles). When observing the VAIC’s components, risk-taking behaviors were also significantly affected by HCE (Human Capital Efficiency), CEE (Capital Employed Efficiency) and SCE (Structural Capital Efficiency) at the 90th quantile of instability distribution and the 10th quantile of credit risk distribution. Furthermore, the results also emphasized that there was an inverse U-shaped association between intellectual capital and bank risk-taking. Therefore, this study provides important implications for policymakers, regulators, bank managers and academics that encourage increasing investment in knowledge assets to minimize bank risks in the long run.

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Intellectual capital and bank profitability: New evidence from Vietnam

Cited by 31 publications

References 60 publications

The Impact of Intellectual Capital on Bank Profitability during COVID‐19: A Comparison with China and Pakistan

The Impact of Intellectual Capital on Bank Profitability during COVID‐19: A Comparison with China and Pakistan

Does corporate governance moderate the relationship between intellectual capital and firm's performance?

Intellectual Capital and Bank Risk in Vietnam—A Quantile Regression Approach

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