Description of the variables
| Variables | Codes | Definition |
|---|---|---|
| Intellectual capital (dependent) | ||
| Human capital efficiency | HCE | Ratio of value added divided by human capital. Where: the value added = gross income – operating expenses. Where the human capital = total expenses related to employees |
| Structural capital efficiency | SCE | Ratio of value added divided by structural capital. Where: the value added = gross income – operating expenses. Where the structural capital = total expenses related to research and development |
| Relational capital efficiency | RCE | Ratio of value added divided by relational capital. Where: the value added = gross income – operating expenses. Where the relational capital = total expenses related to marketing |
| Corporate governance mechanisms (independent) | ||
| Board size | BS | Total number of members on the board |
| Non-executive directors | NEXD | Total number of members of non-executive directors |
| CEO duality | CD | If CEO also holds chairman position, then the value is 1 and if it is separate, then the value is 0 |
| Shariah supervisory board | SB | Log of total number of members of Shariah board |
| Audit committee | AUDC | Total number of members in audit committee |
| Bank characteristics (controls) | ||
| Bank size | TA | Natural log of corporate total assets |
| Leverage | LEV | Proportion of total debt over equity |
| Foreign ownership | FOWN | Dummy is a binary variable that takes the value of 1 if foreign firms have an ownership in the firm or 0 otherwise |
| Board features (controls) | ||
| Gender | GEND | If CEO is male, the value is 1 and if CEO is female, then the value is 0 |
| Board meetings | BM | Total number of board meetings |
| Macro-economic (controls) | ||
| Country growth | GDP | Natural log of total gross domestic product |
| Variables | Codes | Definition |
|---|---|---|
| Human capital efficiency | HCE | Ratio of value added divided by human capital. Where: the value added = gross income – operating expenses. Where the human capital = total expenses related to employees |
| Structural capital efficiency | SCE | Ratio of value added divided by structural capital. Where: the value added = gross income – operating expenses. Where the structural capital = total expenses related to research and development |
| Relational capital efficiency | RCE | Ratio of value added divided by relational capital. Where: the value added = gross income – operating expenses. Where the relational capital = total expenses related to marketing |
| Board size | BS | Total number of members on the board |
| Non-executive directors | NEXD | Total number of members of non-executive directors |
| CEO duality | CD | If CEO also holds chairman position, then the value is 1 and if it is separate, then the value is 0 |
| Shariah supervisory board | SB | Log of total number of members of Shariah board |
| Audit committee | AUDC | Total number of members in audit committee |
| Bank size | TA | Natural log of corporate total assets |
| Leverage | LEV | Proportion of total debt over equity |
| Foreign ownership | FOWN | Dummy is a binary variable that takes the value of 1 if foreign firms have an ownership in the firm or 0 otherwise |
| Gender | GEND | If CEO is male, the value is 1 and if CEO is female, then the value is 0 |
| Board meetings | BM | Total number of board meetings |
| Country growth | GDP | Natural log of total gross domestic product |