TITLE:
Determinants and Consequences of Intellectual Capital Efficiency in the U.S. Banking Industry
AUTHORS:
Justin Y. Jin, Wenting Wang
KEYWORDS:
Banks, Intellectual Capital Efficiency, Human Capital Efficiency, Relational Capital Efficiency, Structural Capital Efficiency, Organizational Memory, Risk Taking, Accounting Conservatism, Funding Structure
JOURNAL NAME:
Theoretical Economics Letters,
Vol.10 No.2,
April
29,
2020
ABSTRACT: This study investigates the determinants and
consequences of intellectual capital efficiency in the U.S. banking industry.
We find that banks’ individual institutional memory of bad times reduces their
intellectual capital efficiency. We also find that intellectual capital
efficiency restricts banks’ risk-taking behaviors and enhances their accounting
conservatism. Finally, we find that intellectual capital efficiency helps banks
attract more wholesale funding deposits. In addition, we test the impact of
three components of intellectual capital efficiency on bank accounting
conservatism, and find that both human capital efficiency and relational
capital efficiency significantly impact on bank accounting conservatism.