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The relationship between bank performance and intellectual capital in East Asia

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  • Wei-Kang Wang

    ()

  • Wen-Min Lu

    ()

  • Yu-Han Wang

    ()

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    Abstract

    In this paper, we develop a performance efficiency value by using data envelopment analysis (DEA) to integrate five perspectives of CAMEL (Capital Adequacy, Asset Quality, Management, Earnings, Liquidity), which is used by the Federal Deposit Insurance Corporation to evaluate banking performance. In addition, we utilize a tiered DEA to categorize banks into four groups. One-way ANOVA is used to analyze differences in CAMEL and intellectual capital (IC) variables across the four groups. CAMEL variables are manifested more strongly in highly efficient groups when compared with inefficient groups. The findings also reveal the importance of IC in achieving high levels of bank efficiency. Copyright Springer Science+Business Media B.V. 2013

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    Bibliographic Info

    Article provided by Springer in its journal Quality & Quantity.

    Volume (Year): 47 (2013)
    Issue (Month): 2 (February)
    Pages: 1041-1062

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    Handle: RePEc:spr:qualqt:v:47:y:2013:i:2:p:1041-1062

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    Web page: http://www.springer.com/economics/journal/11135

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    Related research

    Keywords: Commercial bank; CAMEL; Data envelopment analysis; Performance; Intellectual capital;

    References

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    Cited by:
    1. Chen, Fu-Chiang & Liu, Z.-John & Kweh, Qian Long, 2014. "Intellectual capital and productivity of Malaysian general insurers," Economic Modelling, Elsevier, vol. 36(C), pages 413-420.

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