Corporate Governance, Intellectual Capital and Financial Performance of Banks listed in Pakistan Stock Exchange
Year: 2017
Type: article
Abstract: This study aims to examine the impact of Corporate Governance (CG) and Intellectual Capital (IC) on financial performance in banks listed in Pakistan stock exchange. Due to the different scope of business, the banks are dived into two groups - Commercial banks and Microfinance & investment banks, and analyzed their data separately. We have used Generalized Least Squared (GLS) model to examine the impact of Corporate Governance and Intellectual Capital, and then impact of Intellectual capital on financial performance. The results show that Corporate Governance has significant impact on intellectual capital in both groups of banks. Board ownership has positive significant coefficient only in case of microfinance & investment banks, while Board size and Board independence significantly improve intellectual capital efficiency in case of both types of banks. Human capital efficiency significantly effects financial performance in Microfinance and investment banks, whereas commercial banks improve their financial performance through structural capital efficiency.
Authors: Javed Iqbal, Jahan Zaib
Institution: Quaid-i-Azam University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2910605911