• I & II Jan-Dec VOL-12
  • I & II Jan-Dec VOL-11
  • I & II Jan-Dec VOL-10

BUSINESS VISION (Vol. 12)

business_vision

INTELLECTUAL CAPITAL AND FINANCIAL PERFORMANCE: A STUDY OF INDIAN BANKING SECTOR

  • Author : Prof. Manas Pandey
  • Edition : January - December 2017
  • Pages  : 131
  • ISSN   : 0973-1369
  • Abstract : In the current information era; information, knowledge and information technologies are the dominating resources. The accelerated entry of the businesses into the knowledge-based era has attracted the attention of the investors towards Intellectual Capital. Banking Sector being a service sector has a lot of human capital and customer capital at its disposal, which makes it necessary to employ intellectual capital for its survival. The present study is an attempt to examine the intellectual capital performance of 34 banking companies operating in India during 2010-2015 and analyze its association with the financial performance of the banks as measured by Return on Assets, Return on Equity& Market to Book Value. . VAIC model is used to measure intellectual performance and further its association with the financial performance is analyzed using Panel Regression Analysis, incorporating both Fixed and Random effect models. The findings of the study suggest that Indian Banking Sector is primarily affected by Human Capital Efficiency (HCE). Whereas the Capital Employed Efficiency (CEE) and Structural Capital Efficiency (SCE) are less effective in creating value in the banking sector. Average VAIC of all banks in the analyzed period is 10.7789 and approximately 44% of the banks included in the analysis have a higher average VAIC than this value.

Kiranpreet Kaur

Research Scholar

Department of Commerce, Guru Nanak Dev University, Amritsar, Punjab, India

 
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