Abstract
This paper’s goal is twofold: it aims to assess the performance of 58 Iberian banks and explore the relationship between such performance and the banks’ Intellectual Capital (IC) efficiency during a post-crisis period. As long as the authors are aware, there is a gap in the literature in exploring the relationship between banks’ global performance and IC efficiency. First, the Data Envelopment Analysis model was adopted to measure the efficiency of Iberian banks and rank them according to their performance. Data were collected digitally, specifically by using the Bankscope database provided by Bureau van Dijk. Results show that by improving their resources management practices, banks can significantly increase their efficiency. Then, fractional regressions were used to infer the relationship between IC’s efficiency and the scores obtained in the first stage. Results suggest that Iberian banks’ global performance is mainly determined by their human capital efficiency. Finally, this study stresses the importance of IC measurement to support more efficient decision-making by bank managers.
Highlights
The results presented in the correlation matrix allow to assess the presence of collinearity
The correlation matrix shows that, for the estimation of the first-stage Data Envelopment Analysis (DEA), inputs variables (Total Operating expenses, Number of Employees, and fixed assets) and outputs variables (Net Loans and advances, Total deposits, and net interest income) are positively and highly correlated, which means that an increase in any of those variables will most likely increase the others
A two-stage analysis was conducted in order to address several proposed research questions related to Iberian banks during the period from 2013 to 2016
Summary
Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations. In the present global economy, a knowledge-based one, Intellectual Capital (IC) is progressively being recognised as the dominating resource and driver of organisational performance, efficiency, productivity, and value creation (or destruction) (Cabrita et al.2017; Tiwari and Vidyarthi 2018; Vale et al 2016). There is some consensus regarding the dimensions composing IC (Inkinen 2015; Inkinen et al 2017). The so-called “traditional taxonomy” encompasses three dimensions: Human Capital (HC), Structural
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