Title: Are Islamic banks intellectually efficient? Empirical evidence from Bangladesh

Authors: Amitava Mondal; Sudip Mukherjee; Radhagobinda Basak

Addresses: Department of Commerce, Sidho-Kanho-Birsha University, Purulia, West Bengal, 723104, India ' Department of Economics, Dinabandhu Mahavidyalaya, Bangaon, West Bengal, India ' Department of Commerce, Sidho-Kanho-Birsha University, Purulia, West Bengal, 723104, India

Abstract: This paper measures the value creation efficiency of intellectual capital management of seven Islamic banks in Bangladesh over eight years starting from 2011 to 2018 and examines the impact of intellectual capital management on the financial performance of the sample Islamic banks. VAICTM model has been used to measure the value creation efficiency of intellectual capital management. The financial performance of the banks has been measured with the help of productivity and profitability ratios. We performed panel regression and robust regression analysis with an appropriate method to analyse the data. The results of the present empirical study suggest that the profitability and productivity of Islamic banks of Bangladesh primarily driven by human capital efficiency rather than structural capital efficiency and financial and physical capital efficiency. The present study is the first empirical study that examined intellectual capital management and its impact on the financial performances of Islamic banks in Bangladesh.

Keywords: intellectual capital; value creation; VAIC; productivity; profitability; Islamic banks; panel data; Bangladesh.

DOI: 10.1504/IJLIC.2022.122589

International Journal of Learning and Intellectual Capital, 2022 Vol.19 No.3, pp.236 - 256

Received: 02 Dec 2020
Accepted: 28 Apr 2021
Published online: 03 May 2022 *

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