IDEAS home Printed from https://ideas.repec.org/a/ids/ijlica/v20y2023i1p6-28.html
   My bibliography  Save this article

The effects of intellectual capital on risk and return of banks: nonlinear modelling approach

Author

Listed:
  • Nicholas Asare
  • Joseph Mensah Onumah
  • Alex Dontoh

Abstract

This study examines the nonlinear effects of intellectual capital (IC) on the risks and returns of banks. Using the annual data of 366 banks from 26 African countries during 2007 to 2015, the study estimates the following: IC using the value-added intellectual coefficient (VAIC); risks and returns of banks using net interest margin; risk-adjusted return on assets; and insolvency risk. The results indicate that the relationship between net interest margin/insolvency risk and IC is nonlinear, U-shaped/ inverted U-shaped. The study's findings provide evidence for the extent of IC's contribution to the performance and stability of banks in Africa. This study's multidimensional conceptualisation of IC, risks and returns provides a robust systematic approach to a comprehensive understanding of aspects of the banking sector in emerging economies in Africa.

Suggested Citation

  • Nicholas Asare & Joseph Mensah Onumah & Alex Dontoh, 2023. "The effects of intellectual capital on risk and return of banks: nonlinear modelling approach," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 20(1), pages 6-28.
    • Handle: RePEc:ids:ijlica:v:20:y:2023:i:1:p:6-28
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=127693
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijlica:v:20:y:2023:i:1:p:6-28. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=86 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.