Version 1
: Received: 9 July 2024 / Approved: 10 July 2024 / Online: 11 July 2024 (12:16:38 CEST)
How to cite:
Pitre-Cedeño, O. J.; Herrera-Rodríguez, E. E. Intellectual Capital and Performance of Banking and Financial Institutions in Panama: An Application of the VAIC™ Model. Preprints2024, 2024070899. https://doi.org/10.20944/preprints202407.0899.v1
Pitre-Cedeño, O. J.; Herrera-Rodríguez, E. E. Intellectual Capital and Performance of Banking and Financial Institutions in Panama: An Application of the VAIC™ Model. Preprints 2024, 2024070899. https://doi.org/10.20944/preprints202407.0899.v1
Pitre-Cedeño, O. J.; Herrera-Rodríguez, E. E. Intellectual Capital and Performance of Banking and Financial Institutions in Panama: An Application of the VAIC™ Model. Preprints2024, 2024070899. https://doi.org/10.20944/preprints202407.0899.v1
APA Style
Pitre-Cedeño, O. J., & Herrera-Rodríguez, E. E. (2024). Intellectual Capital and Performance of Banking and Financial Institutions in Panama: An Application of the VAIC™ Model. Preprints. https://doi.org/10.20944/preprints202407.0899.v1
Chicago/Turabian Style
Pitre-Cedeño, O. J. and Edila Eudemia Herrera-Rodríguez. 2024 "Intellectual Capital and Performance of Banking and Financial Institutions in Panama: An Application of the VAIC™ Model" Preprints. https://doi.org/10.20944/preprints202407.0899.v1
Abstract
In the knowledge era, intellectual capital has been considered a key factor in creating value within organisations. This study examines the relationships and interactions between the components of intellectual capital and the profitability of Panamanian banking, and financial institutions listed on the Latin American Stock Exchange (LATINEX) from 2014 to 2020. Utilising the Valued-Added Intellectual Coefficient (VAIC)™ model, which evaluates the intellectual capital of organisations based on information from financial statements, the study constructs a regression model to examine the relationship between the Return on Equity (ROE) and the components of the VAIC™. The findings confirm the study’s hypothesis, demonstrating that the Structural Capital Efficiency (SCE) and company size (SIZE) variables explain 57% of the variance in ROE for the analysed institutions. The results suggest that the Intellectual Capital (IC) of financial sector institutions listed on LATINEX is significantly influenced by the SCE coefficient, which shows a negative relationship, suggesting that investment in structural capital does not enhance profitability. On the other hand, larger institutions exhibited higher profitability during the study period.
Keywords
intellectual capital; return on equity; added value of intellectual capital; Latin American Stock Exchange
Subject
Business, Economics and Management, Finance
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
