Original scientific paper

Testing the Relationship between the Effi ciency of Value Added Intellectual Coeffi cient and Corporate Performance at Commercial Banks in Amman Stock Exchange (ASE)

Faris Nasif AL-Shubiri ; Amman Arab University, Faculty of Business, Department of Finance and Banks, Amman, Jordan

Abstract

The principal purpose of the present paper is to investigate the association between the effi ciency of value added Intellectual Coeffi cient (VAIC) by the major components of a banks resource base {physical capital (CEE), human capital (HCE) and structural capital (SCE)} and three traditional dimensions of banks fi nancial performance. The three traditional dimensions of banks fi nancial performance are (1) profi tability, (2) productivity and (3) market valuation. The study Used 14 commercial banks data drawn from Amman Stock Exchange (ASE) reporting period 2002-2007. The paper used two models to testing, the fi rst between the Value Added Intellectual Coeffi cient (VAIC) as the effi ciency measure of three intellectual capital components and market valuation. The second model explores the relation between every intellectual capital variables as independent variables and banks fi nancial performance dimensions include return on assets, return on equity and employee productivity.

Keywords

Intellectual Capital; Human capital; Capital employed Structural Capital; VAIC; Financial Performance

Hrčak ID:

78728

URI

https://hrcak.srce.hr/78728

Publication date:

1.5.2011.

Visits: 2.276 *