INTELLECTUAL CAPITAL PRACTICES AND FINANCIAL EFFICIENCY: A MEDIATING ROLE OF BANKS’ PERFORMANCE: EVIDENCE FROM THE BANKING SECTOR OF PAKISTAN

Wasim Ul Rehman, Muhammad Ilyas, Chaudhary Abdul Rehman

Abstract


The study attempts to examine the impact of intellectual capital
(IC) practices (i.e. human capital, structural capital and relational
capital practices) on financial efficiency through mediating the role
of bank performance. We collected data for 518 banks’ professionals
through questionnaire and use the direct path way and multiple
regression to examine the impact of IC practices on mediating variable
(bank performance) and mediating variable on dependent variable
(financial efficiency). The results reveal that the proposed hypotheses
are statistically significant (p<0.01) and that banks’ performance
partially mediates the relationship between IC practices and banks’
financial efficiency. This study provides valuable insights on the
impact of IC practices on financial efficiency of banks through
mediation of bank performance. The tested theoretical relationship
reveals that banks which are more involved in IC practices get better
results than their competitors.


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DOI: http://dx.doi.org/10.22555/pbr.v18i2.837

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