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The impact of the intellectual capital efficiency on commercial banks performance: Evidence from the US

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  • Meles, Antonio
  • Porzio, Claudio
  • Sampagnaro, Gabriele
  • Verdoliva, Vincenzo

Abstract

Using a large sample of 5,749 commercial banks, covering over 40,000 observations over the time window 2005–2012, we find that efficiency in the use of intellectual capital (IC) positively affects the financial performance of US banks. In addition, the results show that human capital (HC) efficiency, a subcomponent of IC efficiency, has a larger impact on financial performance than other IC sub-components. These findings suggest that the development of effective techniques of knowledge management, enabling banks to accumulate the IC necessary to adapt to a constantly changing environment, represents an effective tool of achieving the goals of both bank managers and policymakers.

Suggested Citation

  • Meles, Antonio & Porzio, Claudio & Sampagnaro, Gabriele & Verdoliva, Vincenzo, 2016. "The impact of the intellectual capital efficiency on commercial banks performance: Evidence from the US," Journal of Multinational Financial Management, Elsevier, vol. 36(C), pages 64-74.
    • Handle: RePEc:eee:mulfin:v:36:y:2016:i:c:p:64-74
    DOI: 10.1016/j.mulfin.2016.04.003
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    More about this item

    Keywords

    Banks performance; Intellectual capital; Human capital; VAIC™;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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