Title: Intellectual capital performance in Indian banks: a panel data analysis

Authors: Sushila Soriya; Karam Pal Narwal

Addresses: Department of Commerce, Central University of Rajasthan, Ajmer – 305801, Rajasthan, India ' Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar – 125001, Haryana, India

Abstract: The study aims to examine intellectual capital efficiency and its association with the financial performance in Indian banks. The time period selected for the study spans from 2005-2006 to 2012-2013. OLS, fixed effect and random effect was used to investigate if VAIC is a comprehensive model for measuring intellectual capital performance and whether its components can act as strong predictor of corporate financial success. Corporate financial performance is measured through bank growth, employee productivity and bank profitability. The results found that SCE is significantly associated with bank profitability, growth and employee productivity. ADE used as measure of advertising efficiency is also significantly associated with BP and GR. The study is an addition to the current knowledge of intellectual capital in the organisations. It will also assist the developers of the accounting standards to make the use of findings to determine the possible necessary changes in the present accounting policies for better representation of the intellectual capital.

Keywords: intellectual capital performance; banking sector; VAIC; panel data; India; bank performance; intellectual capital efficiency; financial performance; bank growth; employee productivity; bank profitability; accounting standards.

DOI: 10.1504/IJLIC.2015.068983

International Journal of Learning and Intellectual Capital, 2015 Vol.12 No.2, pp.103 - 121

Received: 16 May 2014
Accepted: 16 Dec 2014
Published online: 06 May 2015 *

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