Purposes of this doctoral thesis are: • Obtaining measures of Intellectual Capital (IC) performance for quoted banks on the Milan Stock Exchange Market during the period 2003-2007.Empirically investigating the relationship between the value creation efficiency and firms’ market valuation and financial performances. • Testing the effects of IC performance on profitability and evaluating whether the IC can be considered a decision-making factor for investors or not. In order to have a wider prospective of analysis and for a better interpretation of the evidence obtained at local level (Italian Banking Market), a cross analysis investigation has been conducted on the listed banks operating in the United States and in the rest of Europe. Methodology. Using data drawn from public annual reports and Pulic’s Value Added Intellectual Coefficient (VAIC) as an efficiency measure of Capital Employed and Intellectual Capital, the study engages regression models to examine the relationship between corporate value creation efficiency and firms’ market to book value ratios to explore the relationship between IC and firms’ financial performances. The research also uses Calculated Intangible Value (CIV) as a different measure of the IC within a Company. Using the CIV we give an estimate of the monetary value of IC. Lastly, the effects of IC performance on profitability are tested using Data Envelopment Analysis (DEA). Expected Findings. The correlation analysis shows that the market to book value ratios (MV/BV) is positively correlated to VAIC. The results of regression models supports the hypothesis that investors place higher value on firms with greater intellectual capital ability. Considering a descriptive analysis, the Italian Banks are generally less efficient in the use of IC when compared to Spanish competitors and to the North European Banks. Considering the DEA analysis, the effect on profitability for Italian banks is calculated through three different portfolios. Using Portfolio 1 (Intangible Asset Effects with VAIC as an input value), the intellectual capital effect on profitability is calculated as 0.236 on average. Research Limitations/Implications: For the purposes of this Doctoral Thesis, we have primarily measured the intellectual capital performance of over 60 Italian banks, and of over 300 banks operating in other countries, by using the VAIC. This study fails to consider all the banks operating in Italy (for data insufficiency, in particular for those not listed) and, moreover, it includes only 3 years worth of analysis. In performing the DEA, all input and output values for the numeric data had to be available and positive. Practical Implications. Our results can assist the management of the respective banks in benchmarking their positions regarding intellectual capital. The study might also assist policy makers in formulating and implementing policy regarding intellectual capital development and aid investors in modifying investment strategies. Originality/Value: Our study may be considered an experiment in the literature of intellectual capital, because it investigates the effects of intellectual capital performance on profitability in the banking sector using both VAIC and DEA, with the CIV model as a control check tool of evaluation.

Gigante, G. (2009). Intellectual capital and banking's performance: some empirical evidences from the Italian banking system.

Intellectual capital and banking's performance: some empirical evidences from the Italian banking system

GIGANTE, GIMEDE
2009-09-01

Abstract

Purposes of this doctoral thesis are: • Obtaining measures of Intellectual Capital (IC) performance for quoted banks on the Milan Stock Exchange Market during the period 2003-2007.Empirically investigating the relationship between the value creation efficiency and firms’ market valuation and financial performances. • Testing the effects of IC performance on profitability and evaluating whether the IC can be considered a decision-making factor for investors or not. In order to have a wider prospective of analysis and for a better interpretation of the evidence obtained at local level (Italian Banking Market), a cross analysis investigation has been conducted on the listed banks operating in the United States and in the rest of Europe. Methodology. Using data drawn from public annual reports and Pulic’s Value Added Intellectual Coefficient (VAIC) as an efficiency measure of Capital Employed and Intellectual Capital, the study engages regression models to examine the relationship between corporate value creation efficiency and firms’ market to book value ratios to explore the relationship between IC and firms’ financial performances. The research also uses Calculated Intangible Value (CIV) as a different measure of the IC within a Company. Using the CIV we give an estimate of the monetary value of IC. Lastly, the effects of IC performance on profitability are tested using Data Envelopment Analysis (DEA). Expected Findings. The correlation analysis shows that the market to book value ratios (MV/BV) is positively correlated to VAIC. The results of regression models supports the hypothesis that investors place higher value on firms with greater intellectual capital ability. Considering a descriptive analysis, the Italian Banks are generally less efficient in the use of IC when compared to Spanish competitors and to the North European Banks. Considering the DEA analysis, the effect on profitability for Italian banks is calculated through three different portfolios. Using Portfolio 1 (Intangible Asset Effects with VAIC as an input value), the intellectual capital effect on profitability is calculated as 0.236 on average. Research Limitations/Implications: For the purposes of this Doctoral Thesis, we have primarily measured the intellectual capital performance of over 60 Italian banks, and of over 300 banks operating in other countries, by using the VAIC. This study fails to consider all the banks operating in Italy (for data insufficiency, in particular for those not listed) and, moreover, it includes only 3 years worth of analysis. In performing the DEA, all input and output values for the numeric data had to be available and positive. Practical Implications. Our results can assist the management of the respective banks in benchmarking their positions regarding intellectual capital. The study might also assist policy makers in formulating and implementing policy regarding intellectual capital development and aid investors in modifying investment strategies. Originality/Value: Our study may be considered an experiment in the literature of intellectual capital, because it investigates the effects of intellectual capital performance on profitability in the banking sector using both VAIC and DEA, with the CIV model as a control check tool of evaluation.
A.A. 2008/2009
Banca e finanza
22.
intellectual capital
Settore SECS-P/11 - Economia degli Intermediari Finanziari
Italian
Tesi di dottorato
Gigante, G. (2009). Intellectual capital and banking's performance: some empirical evidences from the Italian banking system.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2108/1074
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