Title: Does corporate governance influence intellectual capital? An evaluation of Indian and Chinese banking sector

Authors: Ruchita Verma; Dhanraj Sharma; Priyanka Chugh

Addresses: Central University of Punjab, VPO, Ghudda, Distt. Bathinda (Pincode 151401), Punjab, India ' Central University of Punjab, VPO, Ghudda, Distt. Bathinda (Pincode 151401), Punjab, India ' Central University of Punjab, VPO, Ghudda, Distt. Bathinda (Pincode 151401), Punjab, India

Abstract: The study aims to evaluate the impact of corporate governance on the intellectual capital performance of the Indian and Chinese banking sectors. The study considers board characteristics and audit committee characteristics as a proxy of corporate governance (independent variable) and firm size and returns on equity (ROE) as control variables. The value-added intellectual capital (VAIC) coefficient is employed to measure the intellectual capital, which comprises human capital efficiency (HCE), structural capital efficiency (SCE) and communicative capital efficiency (CCE). The data are collected from 31 Indian and 12 Chinese banks for the study period of 11 years and analysed using cross-sectional time-series feasible generalised least square (FGLS) regression. The study's findings indicate that board size, gender diversity and ROE has a significant positive relationship with VAIC in Indian banks, while audit size and ROE were found to be positively influential in the case of Chinese banks.

Keywords: corporate governance; intellectual capital; Indian banks; Chinese banks; generalised least square; GLS.

DOI: 10.1504/IJEPEE.2024.138470

International Journal of Economic Policy in Emerging Economies, 2024 Vol.19 No.2, pp.207 - 225

Received: 03 Aug 2021
Accepted: 12 Feb 2022
Published online: 07 May 2024 *

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