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A Study of Determinants of Intellectual Capital Influencing Financial Performance of Selected Banks in Ghana

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  • Musah Dumah

    (Parul University)

  • Dipak S. Gaywala

    (Parul University)

Abstract

The aim of this study is to examine how Ghanaian banks' financial performance is impacted by intellectual capital elements. The components of the value added intellectual capital co-efficient (VAIC) were identified as the factors influencing banks performance. This study analyzed the data using both the VAIC model and the panel data regression model. The study's conclusions suggest there is a connection between Ghanaian banks' success and intellectual capital (IC) variables (using the VAIC method). The relationship between VAIC and return on asset (ROA), a financial performance metric, is found to be considerably favorable when the dataset is employed in a panel regression model. Structural capital (SC) and capital employed (CE) were the factors that determined a bank's performance when the VAIC components were split and examined. Therefore, if banks in Ghana want to increase their earnings and competitiveness, they should deploy their structural capital and capital employed effectively.

Suggested Citation

  • Musah Dumah & Dipak S. Gaywala, 2024. "A Study of Determinants of Intellectual Capital Influencing Financial Performance of Selected Banks in Ghana," International Journal of Global Business and Competitiveness, Springer, vol. 19(1), pages 12-20, December.
    • Handle: RePEc:spr:ijogbc:v:19:y:2024:i:1:d:10.1007_s42943-024-00105-6
    DOI: 10.1007/s42943-024-00105-6
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    References listed on IDEAS

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    1. Abdullah Yalama, 2013. "The relationship between intellectual capital and banking performance in Turkey: evidence from panel data," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 10(1), pages 71-87.
    2. Ulf Br&?ggemann & J?rg-Markus Hitz & Thorsten Sellhorn, 2013. "Intended and Unintended Consequences of Mandatory IFRS Adoption: A Review of Extant Evidence and Suggestions for Future Research," European Accounting Review, Taylor & Francis Journals, vol. 22(1), pages 1-37, May.
    3. repec:eme:ijoes0:ijoes-06-2020-0079 is not listed on IDEAS
    4. Md. Abdur Rouf & Md. Alamgir Hossan, 2020. "The effects of board size and board composition on CSR disclosure: a study of banking sectors in Bangladesh," International Journal of Ethics and Systems, Emerald Group Publishing Limited, vol. 37(1), pages 105-121, December.
    5. Joseph Mensah Onumah & King Carl Tornam Duho, 2019. "Intellectual Capital: Its Impact on Financial Performance and Financial Stability of Ghanaian Banks," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 5(3), pages 243-268, July.
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