Abstract
Copyright © 2019 Inderscience Enterprises Ltd. The main contribution of this paper is to report on the impact of intellectual capital (IC) on financial performance of Islamic banks operating in the UK. Two distinct measures, return on average assets (ROAA) and return on average equity (ROAE) are used to measure the financial performance. The paper also controls for number of employees and bank size. Results based on the regression analysis suggest that IC efficiency proxied by the value added intellectual coefficient (VAIC) relates positively with financial performance of Islamic banks in the UK. The analysis further suggests that bank size and number of employees equally contribute in banks' achieving higher financial performance. Additionally, the paper further ghettoises sub-components of IC namely; capital employed, human capital and structural capital to analyse the discrete impact of these IC constituents on financial performance. The analysis of the sub components suggests a positive relationship between physical and financial capital employed efficiency, human capital efficiency and performance.
DOI
10.1504/IJLIC.2019.096934
Publication Date
2018-11-28
Publication Title
International Journal of Learning and Intellectual Capital
Volume
16
Issue
1
Publisher
Inderscience
ISSN
1479-4861
Embargo Period
2024-11-19
First Page
87
Last Page
97
Recommended Citation
Nawaz, T. (2018) 'Intellectual capital profiles and financial performance of Islamic banks in the UK', International Journal of Learning and Intellectual Capital, 16(1), pp. 87-97. Inderscience: Available at: https://doi.org/10.1504/IJLIC.2019.096934
