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Intellectual capital and financial performance of Islamic banks

Ousama, Abdulrahman Anam and Abdul Hamid, Fatima (2015) Intellectual capital and financial performance of Islamic banks. International Journal of Learning and Intellectual Capital, 12 (1). pp. 1-15. ISSN 1479-4853

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This paper measures the value added intellectual coefficient (VAIC™) for corporate efficiency performance of the Islamic banking sector in Malaysia. In addition, the paper examines the relationship between IC efficiency and financial performance. The paper used secondary data which was collected from the annual reports for the years 2008, 2009 and 2010. The paper found that the overall IC efficiency (i.e., VAIC) of this study's sample is higher than that of conventional banks' of prior studies. In addition, the paper found that human capital efficiency is higher than the structural capital and capital employed efficiencies. Furthermore, the paper found that IC efficiency influences the profitability of Islamic banks. The findings provide empirical evidence that the optimal utilisation of IC and resources leads to higher bank profitability. Therefore, these findings could be useful as Islamic banks that would like to further improve their financial performance could focus on improving their IC.

Item Type: Article (Journal)
Additional Information: 2424/50801
Uncontrolled Keywords: intellectual capital; financial performance; efficiency; value added intellectual coefficient; VAICTM; Islamic banks; Malaysia.
Subjects: H Social Sciences > HG Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Economics and Management Sciences > Department of Accounting
Depositing User: Dr Fatima Hamid
Date Deposited: 25 May 2016 16:49
Last Modified: 21 May 2018 09:16
URI: http://irep.iium.edu.my/id/eprint/50801

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