Abstract
The purpose of this study is to investigate empirically the relationship between investment in intellectual capital and the performance of Turkish banking sector both in short and long period from 1995 to 2006. The intellectual capital performance of quoted banks in Istanbul stock exchange market is measured using value added intellectual coefficient (VAICTM), and the effect of these intellectual capital components on banking performance are tested using panel data regression analysis. The results indicate that intellectual capital is enhancing banks profitability, market value and productivity especially in long period.
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