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Intellectual capital performance and its long-run behavior: The US banking industry case

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  • Sampath Kehelwalatenna
  • Gamini Premaratne

Abstract

This paper examines the impact of intellectual capital (IC) on the corporate performance of banking firms listed on the New York Stock Exchange from 2000 to 2011 as an attempt to rectify observed modeling issues in the extant IC performance models. It also studies the long-run behavior of IC as a strategic asset in the value-creation process. We propose four dynamic models to estimate IC performance, and the evidence of these models concludes that IC has a positive influence on the performance of the sample firms. However, the IC level and the magnitude of its influence on corporate performance have deteriorated over the sample period, raising doubts about the appropriateness of using IC as a strategic asset in the long term.

Suggested Citation

  • Sampath Kehelwalatenna & Gamini Premaratne, 2014. "Intellectual capital performance and its long-run behavior: The US banking industry case," New Zealand Economic Papers, Taylor & Francis Journals, vol. 48(3), pages 313-333, December.
    • Handle: RePEc:taf:nzecpp:v:48:y:2014:i:3:p:313-333
    DOI: 10.1080/00779954.2013.867796
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    References listed on IDEAS

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    Cited by:

    1. Hongxing Yao & Muhammad Haris & Gulzara Tariq & Hafiz Mustansar Javaid & Muhammad Aamir Shafique Khan, 2019. "Intellectual Capital, Profitability, and Productivity: Evidence from Pakistani Financial Institutions," Sustainability, MDPI, vol. 11(14), pages 1-30, July.
    2. Akintoye Olufemi Temiday, 2023. "Intellectual Capital Investment and Business Sustainability of Deposit Money Banks in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(11), pages 1612-1626, November.
    3. Vo, Duc, 2018. "Should Bankers Be Concerned with Intellectual Capital? A Study of the Thai Banking Sector," MPRA Paper 103275, University Library of Munich, Germany.
    4. Monika Klimontowicz & Justyna Majewska, 2022. "The contribution of intellectual capital to banks' competitive and financial performance: The evidence from Poland," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 18(2), pages 105-136.

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