The Impact of Intellectual Capital on the Financial Performance of Banks in Iran

Document Type : applied


1 Associate Prof. Department of Economics, Firoozkoh Branch, Islamic Azad University, Firoozkoh, Iran.

2 Ph.D Candidate of Economics, Firoozkoh Branch, Islamic Azad University, Firoozkoh, Iran.


The goal of most companies is to earn more profit and this case is reflected in the form of financial performance in banks and financial institutions. One of the factors affecting on financial performance is intellectual capital. The aim of this study was to evaluate the effect of intellectual capital and its components (human capital, physical and structural) on financial performance of banks active in the Tehran Stock Exchange during 2006-2015. Intellectual capital efficiency of banks is measured via the Value Added Intellectual Capital (VAIC). Panel data regression analysis showed a significant positive impact of intellectual capital on return on assets of banks. In particular, human capital and return on assets had a significant positive relationship. This result shows the efficiency coefficient of human capital has a greater impact than structural capital and physical capital efficiency coefficient on bank profitability. The results identify of special incentives of intellectual capital that affect on profitability and business efficiency.
JEL: G11, G21, O34
How to cite this paper: Mahmoodzadeh, M., & Efati Baran, F. (2017). The Impact of Intellectual Capital on the Financial Performance of Banks in Iran. Quarterly Journal of Risk Modeling and Financial Engineering. 2(1), 60 –79. (In Persian)


Main Subjects

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