Intellectual capital and financial performance: A study of the Turkish Banking Sector

ÖZKAN N., ÇAKAN S., Kayacan M.

BORSA ISTANBUL REVIEW, vol.17, no.3, pp.190-198, 2017 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 17 Issue: 3
  • Publication Date: 2017
  • Doi Number: 10.1016/j.bir.2016.03.001
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.190-198
  • Keywords: Intellectual capital, Value added intellectual coefficient (VAIC), Financial performance, Return on asset, Turkish banking sector, FIRMS MARKET VALUE, CORPORATE PERFORMANCE
  • Anadolu University Affiliated: Yes


The purpose of this study is to analyze the relationship between the intellectual capital performance and financial performance of 44 banks operating in Turkey between 2005 and 2014. The intellectual capital performance of banks is measured through the value added intellectual coefficient (VAIC) methodology. The intellectual capital performance of the Turkish banking sector is generally affected by human capital efficiency (HCE). In terms of bank types, development and investment banks have the highest average VAIC. When VAIC is divided into its components, it can be observed that capital employed efficiency (CEE) and human capital efficiency (HCE) positively affect the financial performance of banks. However, CEE has more influence on the financial performance of banks compared to HCE. Therefore, banks operating in the Turkish banking sector should use their financial and physical capitals if they wish to reach a higher profitability level. Copyright (c) 2016, Borsa Istanbul Anonim Sirketi. Production and hosting by Elsevier B.V. This is an open access article under the CC BY-NC-ND license.