INTELLECTUAL CAPITAL AND ITS IMPACT ON FIRM PERFORMANCE OF THE TURKISH FINANCIAL SECTOR BEFORE AND AFTER FINANCIAL CRISIS

Year 2017, , 916 - 924, 30.06.2017

Emin Avci , Sedeaq Nassar

https://doi.org/10.17261/Pressacademia.2017.674

Abstract

The main purpose of this study is to investigate the
relationship between intellectual capital and financial performance of
financial companies listed in Borsa Istanbul, using data of 44 listed companies
over 2004-2015. Value Added Intellectual Coefficient (VAIC) method is used as a
measure of intellectual capital (IC). An OLS regression is utilized to examine
the impact of intellectual capital; Human capital efficiency (HCE), Structural
capital efficiency (SCE), and Capital employed efficiency (CEE) on market
performance, financial performance, and productivity performance. The findings
show that HCE has a positive significant relation with ROA after the crisis and
with ROE before and after the crisis. SCE show a positive significant relation
with PE and ROE after the crisis and a negative significant association with MB
after the crisis. Regarding to CEE, the results show that it has only a
positive significant impact on MB after the crisis and a negative significant
influence on ATO after the crisis. Generally, VAIC has a negative significant
relationship with ATO before the crisis and has a positive association with ROA
after the crisis, in addition to a positive significant influence of ROE before
and after crisis. 

Keywords

Intellectual capital, human capital, structural capital, capital employed, value added intellectual coefficient

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