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Examining the impact of corporate governance on intellectual capital: Empirical evidence of Islamic Banks

Saruchi, Sarah Athirah and Mohd. Zamil, Nor Aiza and Basiruddin, Rohaida and Ghazi Ahmad, Nor Faezah (2019) Examining the impact of corporate governance on intellectual capital: Empirical evidence of Islamic Banks. International Journal of Academic Research in Accounting, Finance and Management Sciences, 9 (3). pp. 104-117. ISSN 2225-8329

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Official URL: http://dx.doi.org/10.6007/IJARAFMS/v9-i3/6345


Using the sample of 59 Islamic banks during the period of 2006-2017, the purpose of this paper is to examine the impact of corporate governance mechanisms through the characteristics of board of directors that may influence the intellectual capital (IC) efficiency of Islamic banks. The characteristics of board of directors are represented throughthe size of the board (board size), the proportion of female members on the board (board female), the number of board meetings (board meeting), the proportion of board members who have financing and accounting expertise (board expertise) and the diversityin terms of board members’ nationalities (board nationality diversity). Meanwhile, IC efficiency has been measured using value-added intellectual coefficient (VAIC). This study provides empirical evidence showing that board expertise has positively associated with IC efficiency. This study also examines the linkage between corporate governance mechanisms and IC components namely HCE, SCE and CEE and found that board expertise exerts positive significant impact to HCE and SCE while no significant impact to CEE. Additionally, board female has significant positive relationship with SCE. The study is extremely pivotal in order to know the determinants that can contribute to the enhancement of IC efficiency in respect of corporate governance of Islamic banks.

Item Type:Article
Uncontrolled Keywords:Corporate Governance, Intellectual Capital
Subjects:H Social Sciences > HB Economic Theory
Divisions:International Business School
ID Code:89704
Deposited By: Widya Wahid
Deposited On:04 Mar 2021 10:45
Last Modified:04 Mar 2021 10:45

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