The efficiency of GCC banks: the role of intellectual capital Available to Purchase

This study aims to examine the impact of intellectual capital (IC) efficiency on bank’s operational, financial and market performance.

The study examined 59 banks for 5 years to ends up with 295 observations. The independent variable is the modified value added IC component; the dependent variables are performance indicators (return on assets [ROA], return on equity [ROE] and Tobin’s Q [TQ]).

The findings deduced from the empirical results demonstrate that there is a positive relationship between intellectual capital efficiency and financial performance (ROE) and market performance (TQ).

The results of this study may give a wake-up call for banks to examine the reasons of imperfect relationship between the IC and asset efficiency (ROA).