This article aimed to shed light on whether value-added intellectual capital (VAIC) moderates the relationship between board characteristics, good corporate governance (GCG), and banks’ financial performance (FP).
Panel data collected from the Thomson Reuters ASSET4 database (Data Stream) and annual reports from a sample of 523 European and Asian banks, forming an unbalanced panel of 6,276 observations spanning the period 2011–2022, were used to test the models using the feasible least squares method. Similarly, as an extension of the research, this paper exploits robustness analyzes. The study used the regional distribution of the sample check the robustness of the results.
The results of this study confirm our expectations by providing evidence of a positive and significant relationship between board characteristics, GCG, and banks’ FP. In addition, taking into account the VAIC makes it possible to improve this relationship by positively and significantly moderating it.
Given the long study period, many firms with missing data were eliminated. To avoid the small sample size, countries with few observations were included, which led to an uneven distribution between observations per country.
In a fast-paced, uncertain and risky world, the findings of this study can help global investors and decision-makers consider future growth opportunities for banks in a context where VAIC plays a central role in the evaluation of its firms.
Our research reinforces the existing literature. First, it broadens the debate on the role of boards and GCG. Second, the study is one of the first to examine the moderating effect of VAIC on board characteristics, GCG, and FP in the banking sector.
