Intellectual capital and firm performance: evidence from Indian banking sector

Mohapatra, Suryanarayan; Jena, Sangram Keshari; Mitra, Amarnath; Tiwari, Aviral Kumar

doi:10.1080/00036846.2019.1645283

Cited by 57 publications

(63 citation statements)

References 46 publications

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“…The findings of this study are in line with previous studies [11,15,17,20,78] and suggest that bank profitability in two countries is primarily driven by CEE. However, Mohapatra et al [79] documented a negative relationship between CEE and operational efficiency in the Indian banking sector, which suggests that Indian banks do not reach the minimum capital requirements with the exposure to many outside risks. Also, bank profitability in China is determined by SCE, consistent with Zhang [7], Chen [71], Zhang [74], and Feng [75].…”

Section: Discussionmentioning

confidence: 99%

Should Listed Banks Be Concerned with Intellectual Capital in Emerging Asian Markets? A Comparison between China and Pakistan

Haris

Yao

2019

Sustainability

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The purpose of this study is to determine and compare the relationship between intellectual capital (IC) and banks' performance in China and Pakistan. The data are acquired from listed banks in these two countries during 2010-2018. The Value Added Intellectual Coefficient (VAIC ™ ) method is applied as a measure of IC. The results show that capital employed efficiency (CEE) makes the highest contribution to bank performance in both countries. In addition, the profitability of listed Chinese banks is driven by structural capital efficiency (SCE), while human capital efficiency (HCE) positively affects bank profitability and productivity in Pakistan. In addition, we find that the lagged effect of IC has a positive impact on future bank profitability. This study supports greater investment in IC in order to further improve bank performance in emerging Asian markets.Sustainability 2019, 11, 6582 2 of 23 infrastructure, which can bring great facility for companies. Following this, for the ease of channelizing the business transactions, the Bank of China (BOC) commenced its first branch in 2017 in Karachi, the financial capital city of Pakistan. However, before this only the Industrial and Commercial Bank of China (ICBC) operated in Pakistan. Both ICBC and BOC are listed Chinese banks. China and Pakistan are emerging Asian financial markets with good neighborly relations and close cooperation [24]. In emerging markets, the financing and lending role of the banking sector is utmost important for ensuring a sustained economy [17].According to the World Bank, bank capital to assets ratio in China grows from 6.60% to 8.56%, while Pakistan witnesses a downward trend (see Figure 1). Although the nonperforming loans to total gross loans in Pakistan gradually declines over the period 2014-2017, this ratio in China is much lower than that in Pakistan (See Figure 2). Haneef et al. [25] concluded that nonperforming loans have an adverse effect on the performance of banks in Pakistan. These indicate that the Chinese banking industry is much healthier than the Pakistani banking industry, and Pakistani banks operate with relatively higher risk exposure. However, the Pakistani banking system is more open as many foreign banks operating in Pakistan compared to the Chinese banking system [26]. Recently, China has revised the Regulations on the Administration of Foreign-funded Banks to lower the threshold of establishing foreign branches in China, which can stimulate the vitality of banking sector and improve the competitiveness of Chinese and foreign financial institutions. The opening up of the Chinese banking sector will provide opportunities for Pakistani banks to establish their branches in China. Considering that the competition among banks will become severer with financial liberalization, banks will expand their operation in the international market [27]. It will require that banks fully utilize local resources to improve the competitiveness under different business environment. We choose these two countries for comparison, not ...

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Section: Discussionmentioning

confidence: 99%

Should Listed Banks Be Concerned with Intellectual Capital in Emerging Asian Markets? A Comparison between China and Pakistan

Haris

Yao

2019

Sustainability

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“…Hal ini menunjukkan Intellectual capital bank yang semakin tinggi. Daya saing bank akan semakin meningkat seiring dengan peningkatan Intellectual capital, sehingga kinerja perusahaan akan semakin meningkat (Chen, 2005;Bayraktaroglu, 2019;Hirdinis, 2019;Mohapatra, Jena, & Mitra, 2019;dan Xu & Liu, 2020).…”

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Intellectual Capital Dan Kinerja Keuangan Terhadap Nilai Perusahaan: Pada Industri Perbankan

Fristiani

Pangastuti

Harmono

2020

AFRE

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This study aims to examine and provide empirical evidence of the impact of client size and industry specialization on audit quality and the effect of audit quality on audit fees, reputation, and litigation both on audit-detecting misstatement quality and audit-reporting misstatement quality-analyzed based on client factors. This paper utilizes the perspective regulatory theory and signaling theory and is based on quantitative-causality research conducted by the survey method. Technique sampling is performed by purposive sampling. The results indicate that client size had a significant positive effect on the audit qualitydetecting misstatement but does not have any impact on the audit quality-reporting misstatements whereas industry specialization auditors have no effect on the audit qualitydetecting misstatement but have a significant effect on the audit quality-reporting misstatements. Clients may opt for the auditor that charges lower fees but can provide a positive signal for stakeholders or choose an auditor that is registered with BPK or OJK because such audit firms are more acceptable by stakeholders. As for the external auditors, the highquality audit is necessary to avoid the risk of litigation in addition to maintaining independence.

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“…Although various scholars (Archer-Brown & Kietzmann, 2018;Gallego et al, 2020;Kong, 2007;Roos et al, 2001) bring forward IC's strategic importance, only a few of them analyse its role during crises (Kehelwalatenna, 2016;Mohapatra et al, 2019). The situation is somehow surprising since previous researches emphasise IC's capacity of increasing firm's ability to innovate (Allameh, 2018;Costa et al, 2014;Delgado-Verde et al, 2016;Wu et al, 2008) and gain competitive and sustainable advantage (Ibarra-Cisneros et al, 2020;Li & Liu, 2018;Yaseen et al, 2016).…”

Section: Ic and Crisis Managementmentioning

confidence: 99%

“…Against this backdrop, it can be assumed that IC increases company's capacity of properly reacting to crises. However, the research in this field is still in an embryonic stage of development; so far, this issue is analysed by Kehelwalatenna (2016) and Mohapatra et al (2019) and their results are contradictory. Kehelwalatenna (2016) analyzes the IC's impact on the banks' performance during four financial crises, namely: the dot-com crisis (first quarter of 2000 to third quarter of 2002), the pre-subprime mortgage crisis (fourth quarter of 2002 to third quarter of 2007), the subprime mortgage crisis (fourth quarter of 2007 to second quarter of 2009), and the recovery period from the subprime mortgage crisis (third quarter of 2009 to second quarter of 2011).…”

Section: Ic and Crisis Managementmentioning

confidence: 99%

“…On the other hand, several researchers analyse the IC's capacity of acting as a strategic asset during the crisis (Kehelwalatenna, 2016;Mohapatra et al, 2019) but their results are contradictory. Kehelwalatenna (2016) reveals IC's incapacity of acting as a strategic asset in the emergence of a financial-economic crisis while Mohapatra et al (2019) show that human capital efficiency is the only IC dimension that has a positive influence on banks' operational efficiency.…”

Section: Introductionmentioning

confidence: 99%

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Intellectual capital and the coronavirus crisis: taking a closer look at restaurants’ strategies

Leon

2021

Knowledge Management Research & Practice

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The research aims to determine which dimensions of intellectual capital influenced restaurants' strategic reaction to the coronavirus crisis. The analysis focuses on 227 restaurants that are listed on TripAdvisor as "the best restaurants from Iasi (Romania)". Data are collected from the annual reports and companies' websites. The relationship between the dependent variable (restaurants' reaction to the coronavirus pandemic) and the independent variables (human capital, structural capital, relational capital) is tested using binomial logistic regression. The results prove that the structural and relational capital can predict restaurants' strategic decisions in the time of crisis. These findings have both theoretical and practical implications; on the one hand, they expand the literature regarding restaurants' intellectual capital and on the other hand, they facilitate managers' understanding of how company's intellectual capital influences their strategic decisions during crisis.

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Intellectual capital and firm performance: evidence from Indian banking sector

Cited by 57 publications

References 46 publications

Should Listed Banks Be Concerned with Intellectual Capital in Emerging Asian Markets? A Comparison between China and Pakistan

Should Listed Banks Be Concerned with Intellectual Capital in Emerging Asian Markets? A Comparison between China and Pakistan

Intellectual Capital Dan Kinerja Keuangan Terhadap Nilai Perusahaan: Pada Industri Perbankan

Intellectual capital and the coronavirus crisis: taking a closer look at restaurants’ strategies

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