The Intellectual Capital and their Influence on the Financial Performance of Private Banks in the Province of Kurdistan
Keywords:
Private Banks, VAIC methodology, intellectual capitalAbstract
Using value-added intellectual coefficient (VAIC) methodology, the present study was carried out in order to investigate intellectual capital (IC) performance of private banks located in Erbil and examine the influence of IC on the financial performance of those banks. In so doing, IC components affecting the traditional indices of bank success were specified. The study focused on 1 private bank operating in Erbil in 2017, and the results indicated that they had a low IC performance which was figured out to be positively associated with bank financial performance indicators. Nevertheless, the relationships between the components and financial performance indicators changed as a result of breaking value-added intellectual coefficient into its components.