Impact of intellectual capital on the performance of commercial banking in Vietnam
Main Article Content
Abstract
This study aims to analyze the impact of intellectual capital on the performance of 30 Vietnamese commercial banks from 2007 to 2019, using the system generalized method of moments (GMM). The find shows the positive impacts of that intellectual capital (VAIC)on the performance of commercial banking in VietNam. However, the results also emphasize that the relationship between VAIC and the bank’s performance is a nonlinear (U-shaped) relationship. In addition, when observing the components of VAIC, it can be seen that capital efficiency (CEE), efficiency in using human resources (HCE) and capital structure (SCE) have a positive effect on efficiency. financial performance of banks. In particular, the influence of CEE is significant in the financial performance of banks. Therefore, Vietnamese banks need to improve the efficiency of their capital in order to achieve higher returns
Article Details
Keywords
Performance, Commercial Bank of Vietnam, Intellectual Capital
References
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Arellano, M. (2002). Sargan’s intrumental variables estimation and the generalized method of moments. Journal of Business & Economic Statistics, 20(4), 450-459.
Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The review of economic studies, 58(2), 277-297.
Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of econometrics, 68(1), 29-51.
Bond, S. R. (2002). Dynamic panel data models: a guide to micro data methods and practice.
Portuguese economic journal, 1(2), 141-162.
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Management decision.
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Chen, L., Danbolt, J., & Holland, J. (2014). Rethinking bank business models: The role of intangibles. Accounting, Auditing & Accountability Journal.
Curado, C., Guedes, M. J., & Bontis, N. (2014). The financial crisis of banks (before, during and after): An intellectual capital perspective. Knowledge and Process Management, 21(2), 103-111.
Demirgüç-Kunt, A., & Detragiache, E. (2000). Monitoring banking sector fragility: A multivariate logit approach. The World Bank Economic Review, 14(2), 287-307.
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Hansen, L. P. (1982). Large sample properties of generalized method of moments estimators.
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Haris, M., Yao, H., Tariq, G., Malik, A., & Javaid, H. M. (2019). Intellectual capital performance and profitability of banks: Evidence from Pakistan. Journal of Risk and Financial Management, 12(2), 56.
Joshi, M., Cahill, D., & Sidhu, J. (2010). Intellectual capital performance in the banking sector: An assessment of Australian owned banks. Journal of Human Resource Costing & Accounting.
Joshi, M., Cahill, D., Sidhu, J., & Kansal, M. (2013). Intellectual capital and financial performance: an evaluation of the Australian financial sector. Journal of Intellectual Capital.
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Le, T. D., & Nguyen, D. T. (2020). Capital Structure and Bank Profitability in Vietnam: A Quantile Regression Approach. Journal of Risk and Financial Management, 13(8), 168.
Le, T. D. Q. (2019). The interrelationship between liquidity creation and bank capital in Vietnamese banking. Managerial Finance.
Mavridis, D. G. (2004). The intellectual capital performance of the Japanese banking sector. Journal of Intellectual Capital.
Meles, A., Porzio, C., Sampagnaro, G., & Verdoliva, V. (2016). The impact of the intellectual capital efficiency on commercial banks performance: Evidence from the US. Journal of Multinational Financial Management, 36, 64-74.
Michalisin, M. D., Kline, D. M., & Smith, R. D. (2000). Intangible strategic assets and firm performance: A multi-industry study of the resource-based view. Journal of Business Strategies, 17(2), 91-117.
Mondal, A., & Ghosh, S. K. (2012). Intellectual capital and financial performance of Indian banks.
Journal of Intellectual Capital.
Naaborg, I., & Lensink, R. (2008). Banking in transition economies: Does foreign ownership enhance profitability? The European Journal of Finance, 14(7), 545-562.
Ozkan, N., Cakan, S., & Kayacan, M. (2017). Intellectual capital and financial performance: A study of the Turkish Banking Sector. Borsa Istanbul Review, 17(3), 190-198.
Poh, L. T., Kilicman, A., & Ibrahim, S. N. I. (2018). On intellectual capital and financial performances of banks in Malaysia. Cogent Economics & Finance, 6(1), 1453574.
Pulic, A. (2004). Intellectual capital-does it create or destroy value? Measuring business excellence.
Roos, J., Edvinsson, L., & Dragonetti, N. C. (1997). Intellectual capital: Navigating the new business landscape: Springer.
Schultz, T. W. (1961). Investment in human capital. The American economic review, 51(1), 1-17.
Singh, S., Sidhu, J., Joshi, M., & Kansal, M. (2016). Measuring intellectual capital performance of Indian banks: A public and private sector comparison. Managerial Finance.
Steward, T. A. (1997). Intellectual capital. New York: Bantam Doubleday Dell Publishing Group. Ting, I. W. K., & Lean, H. H. (2009). Intellectual capital performance of financial institutions in
Malaysia. Journal of Intellectual Capital.
Tổng cục Thống Kê. https://www.gso.gov.vn/
Vo, D. H. (2018). Should bankers be concerned with Intellectual capital? A study of the Thai banking sector. Journal of Intellectual Capital.
Wu, W.-Y., & Tsai, H.-J. (2005). Impact of social capital and business operation mode on intellectual capital and knowledge management. International journal of technology management, 30(1-2), 147-171.
Alhassan, A. L., Asare, N., Adcroft, A., & Murphy, P. (2016). Intellectual capital and bank productivity in emerging markets: evidence from Ghana. Management decision.
Amit, R., & Schoemaker, P. J. (1993). Strategic assets and organizational rent. Strategic management journal, 14(1), 33-46.
Arellano, M. (2002). Sargan’s intrumental variables estimation and the generalized method of moments. Journal of Business & Economic Statistics, 20(4), 450-459.
Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The review of economic studies, 58(2), 277-297.
Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of econometrics, 68(1), 29-51.
Bond, S. R. (2002). Dynamic panel data models: a guide to micro data methods and practice.
Portuguese economic journal, 1(2), 141-162.
Bontis, N. (1998). Intellectual capital: an exploratory study that develops measures and models.
Management decision.
Britto, D. P., Monetti, E., & da Rocha Lima Jr, J. (2014). Intellectual capital in tangible intensive firms: the case of Brazilian real estate companies. Journal of Intellectual Capital.
Chen, L., Danbolt, J., & Holland, J. (2014). Rethinking bank business models: The role of intangibles. Accounting, Auditing & Accountability Journal.
Curado, C., Guedes, M. J., & Bontis, N. (2014). The financial crisis of banks (before, during and after): An intellectual capital perspective. Knowledge and Process Management, 21(2), 103-111.
Demirgüç-Kunt, A., & Detragiache, E. (2000). Monitoring banking sector fragility: A multivariate logit approach. The World Bank Economic Review, 14(2), 287-307.
El‐Bannany, M. (2008). A study of determinants of intellectual capital performance in banks: The UK case. Journal of Intellectual Capital. doi: https://doi.org/10.1108/14691930810892045
Goddard, J., Molyneux, P., & Wilson, J. O. (2004). Dynamics of growth and profitability in banking. Journal of money, credit and banking, 1069-1090.
Goh, P. C. (2005). Intellectual capital performance of commercial banks in Malaysia. Journal of Intellectual Capital.
Hansen, L. P. (1982). Large sample properties of generalized method of moments estimators.
Econometrica: journal of the Econometric Society, 1029-1054.
Haris, M., Yao, H., Tariq, G., Malik, A., & Javaid, H. M. (2019). Intellectual capital performance and profitability of banks: Evidence from Pakistan. Journal of Risk and Financial Management, 12(2), 56.
Joshi, M., Cahill, D., & Sidhu, J. (2010). Intellectual capital performance in the banking sector: An assessment of Australian owned banks. Journal of Human Resource Costing & Accounting.
Joshi, M., Cahill, D., Sidhu, J., & Kansal, M. (2013). Intellectual capital and financial performance: an evaluation of the Australian financial sector. Journal of Intellectual Capital.
Kamath, G. B. (2007). The intellectual capital performance of the Indian banking sector. Journal of Intellectual Capital.
Le, T. D., & Ngo, T. (2020). The determinants of bank profitability: A cross-country analysis. Central Bank Review, 20(2), 65-73.
Le, T. D., & Nguyen, D. T. (2020). Capital Structure and Bank Profitability in Vietnam: A Quantile Regression Approach. Journal of Risk and Financial Management, 13(8), 168.
Le, T. D. Q. (2019). The interrelationship between liquidity creation and bank capital in Vietnamese banking. Managerial Finance.
Mavridis, D. G. (2004). The intellectual capital performance of the Japanese banking sector. Journal of Intellectual Capital.
Meles, A., Porzio, C., Sampagnaro, G., & Verdoliva, V. (2016). The impact of the intellectual capital efficiency on commercial banks performance: Evidence from the US. Journal of Multinational Financial Management, 36, 64-74.
Michalisin, M. D., Kline, D. M., & Smith, R. D. (2000). Intangible strategic assets and firm performance: A multi-industry study of the resource-based view. Journal of Business Strategies, 17(2), 91-117.
Mondal, A., & Ghosh, S. K. (2012). Intellectual capital and financial performance of Indian banks.
Journal of Intellectual Capital.
Naaborg, I., & Lensink, R. (2008). Banking in transition economies: Does foreign ownership enhance profitability? The European Journal of Finance, 14(7), 545-562.
Ozkan, N., Cakan, S., & Kayacan, M. (2017). Intellectual capital and financial performance: A study of the Turkish Banking Sector. Borsa Istanbul Review, 17(3), 190-198.
Poh, L. T., Kilicman, A., & Ibrahim, S. N. I. (2018). On intellectual capital and financial performances of banks in Malaysia. Cogent Economics & Finance, 6(1), 1453574.
Pulic, A. (2004). Intellectual capital-does it create or destroy value? Measuring business excellence.
Roos, J., Edvinsson, L., & Dragonetti, N. C. (1997). Intellectual capital: Navigating the new business landscape: Springer.
Schultz, T. W. (1961). Investment in human capital. The American economic review, 51(1), 1-17.
Singh, S., Sidhu, J., Joshi, M., & Kansal, M. (2016). Measuring intellectual capital performance of Indian banks: A public and private sector comparison. Managerial Finance.
Steward, T. A. (1997). Intellectual capital. New York: Bantam Doubleday Dell Publishing Group. Ting, I. W. K., & Lean, H. H. (2009). Intellectual capital performance of financial institutions in
Malaysia. Journal of Intellectual Capital.
Tổng cục Thống Kê. https://www.gso.gov.vn/
Vo, D. H. (2018). Should bankers be concerned with Intellectual capital? A study of the Thai banking sector. Journal of Intellectual Capital.
Wu, W.-Y., & Tsai, H.-J. (2005). Impact of social capital and business operation mode on intellectual capital and knowledge management. International journal of technology management, 30(1-2), 147-171.
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