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Does Intellectual Capital Affect Financial Performance and Non-Performing Loans? Evidence From the Banking Sector in Turkey

Author

Listed:
  • Abdulmuttalip PILATIN
  • Hasan AYAYDIN
  • Abdulkadir BARUT

Abstract

The purpose of this study is to empirically examine the impact of intellectual capital (VAIC) capacity of 21 Turkish banks on financial performance (ROA) and non-performing loans (NPL) from 2004 to 2020. Panel data technique was used for analysis. The study results suggest that banks’ intellectual capital is vital for their profitability, credit risk and competitive advantage. As far as known, this is one of the first empirical researches in Turkey that examines the impact of IC and its components on financial performance and non-performing loans of the Turkish banking sector in the long term.

Suggested Citation

  • Abdulmuttalip PILATIN & Hasan AYAYDIN & Abdulkadir BARUT, 2023. "Does Intellectual Capital Affect Financial Performance and Non-Performing Loans? Evidence From the Banking Sector in Turkey," Journal of BRSA Banking and Financial Markets, Banking Regulation and Supervision Agency, vol. 17(1), pages 39-64.
    • Handle: RePEc:bdd:journl:v:17:y:2023:i:1:p:39-64
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Intellectual Capital; VAIC; Financial Performance; Non-Performing Loans; Banks; Credit Risk;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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