5. Conclusion
The relationship between intellectual capital and financial performance of banks has been the subject of countless studies. If the literature on this subject is reviewed, it is observed that the intellectual capital has a positive impact on financial performance of banks. In this study, the intellectual capital efficiency of 44 banks operating in Turkey between 2004 and 2015 is calculated by means of value added intellectual coefficient (VAIC) and it analyses how intellectual capital affects the financial performance of these banks (ROA). The study provides significant inputs to the current literature by including 44 banks (out of 52) in the sample and analyzing the VAIC values according to bank types. Considering that most of the studies in Turkey focus only on the banks traded on Borsa Istanbul (Ercan et al., 2003; S¸amiloglu, 2006; Yalama, 2013; Yalama & Coskun, 2007), this study is a step forward in the relevant field.
The findings of the study suggest that intellectual capital of the Turkish banking sector is primarily affected by human capital efficiency coefficient (HCE). On the other hand, capital employed efficiency coefficient (CEE) and structural capital efficiency coefficient (SCE) is less effective in creating value in the banking sector compared to HCE. Goh (2005), and Joshi et al. (2010, 2013) have drawn similar conclusions for the financial institutions in Malaysia and Australia. Average VAIC of all banks in the analyzed period is 3.8868 and approximately 34% of the banks included in the analysis have a higher average VAIC than this value. In terms of bank types, development and investment banks has the highest average VAIC.
