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Effects of Ownership Structure on Intellectual Capital: Evidence from Publicly Listed Banks in Bangladesh

Author

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  • Syed Zabid Hossain

    (Department of Accounting and Information Systems, University of Rajshahi, Rajshahi 6205, Bangladesh)

  • Md. Sohel Rana

    (Department of Accounting, Nawab Siraj-Ud-Dowla Govt. College, Natore 6400, Bangladesh)

Abstract

This study explored the impacts of ownership structure (OS) on intellectual capital (IC) and its components. Data were gathered from 31 Dhaka Stock Exchange-listed banks for five years, from 2017 to 2021, consisting of 155 observations as balanced panel data. The study used the modified value-added intellectual coefficient (MVAIC) model to track the IC efficiency. The robust fixed effects model was employed for regression analysis to test the hypotheses. The research found that sponsor director ownership is negatively associated with the MVAIC, human capital efficiency (HCE), and structural capital efficiency (SCE) but positively with relational capital efficiency (RCE). High institutional and public ownership are positively linked with SCE but negatively with RCE. Foreign ownership is only positively associated with banks’ MVAIC and HCE. The regression results showed that high institutional ownership (IO) significantly enhanced the MVAIC and HCE. Foreign and public ownership positively influenced banks’ MVAIC, HCE, and capital employed efficiency (CEE) but negatively impacted RCE. The findings of this study will help banks’ policymakers with ownership mixes for the optimum utilization of banks’ resources. Management may assess IC’s efficiency level for proper supervision and use of knowledge resources to boost bank profitability. Also, the findings will help investors make prudent investment decisions. This is the first study to focus on OS and IC with diverse elements in Southeast Asia, especially Bangladesh, an emerging market.

Suggested Citation

  • Syed Zabid Hossain & Md. Sohel Rana, 2024. "Effects of Ownership Structure on Intellectual Capital: Evidence from Publicly Listed Banks in Bangladesh," JRFM, MDPI, vol. 17(6), pages 1-16, May.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:6:p:222-:d:1401331
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    References listed on IDEAS

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    1. Demsetz, Harold & Lehn, Kenneth, 1985. "The Structure of Corporate Ownership: Causes and Consequences," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1155-1177, December.
    2. Adesina, Kolade Sunday, 2019. "Bank technical, allocative and cost efficiencies in Africa: The influence of intellectual capital," The North American Journal of Economics and Finance, Elsevier, vol. 48(C), pages 419-433.
    3. Fukunari Kimura & Kozo Kiyota, 2007. "Foreign‐owned versus Domestically‐owned Firms: Economic Performance in Japan," Review of Development Economics, Wiley Blackwell, vol. 11(1), pages 31-48, February.
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