Corporate governance components and intellectual capital: Evidence from Jordanian banks

  • Received October 1, 2023;
    Accepted November 6, 2023;
    Published November 23, 2023
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/imfi.20(4).2023.22
  • Article Info
    Volume 20 2023, Issue #4, pp. 272-282
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This work is licensed under a Creative Commons Attribution 4.0 International License

This study investigates the impact of corporate governance components on intellectual capital performance in Jordanian banks. The research purpose is to gain insights into the relationship between various corporate governance components, including board size, board independence, CEO duality, and concentration of ownership, and their influence on intellectual capital efficiency. Ordinary Least Squares regression analysis is employed using data from 156 Jordanian banks by adding two control variables, total assets, and return on equity (ROE) to explore their potential influence. The obtained results reveal significant associations between certain corporate governance factors and intellectual capital efficiency. Ownership concentration demonstrates a direct and statistically relationship with IC performance, indicating that more concentrated ownership leads to improved management and utilization of intellectual capital resources. Additionally, return on equity shows a significant positive correlation with intellectual capital efficiency (Adj R2 was 22.5%). However, the study does not find significant relationships between board size, Chief Executive Officer (CEO) duality, and board independence with intellectual capital efficiency in Jordanian banks. These results suggest that the impact of these governance factors on IC performance may be more context-dependent and nuanced within the banking industry.

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    • Table 1. Descriptive analysis
    • Table 2. Pearson matrix
    • Table 3. The study model
    • Table 4. The study model (with total assets as a control variable)
    • Table 5. The study model (with ROE as a control variable)
    • Conceptualization
      Mohammad Fawzi Shubita
    • Data curation
      Mohammad Fawzi Shubita
    • Formal Analysis
      Mohammad Fawzi Shubita
    • Funding acquisition
      Mohammad Fawzi Shubita
    • Investigation
      Mohammad Fawzi Shubita
    • Methodology
      Mohammad Fawzi Shubita
    • Resources
      Mohammad Fawzi Shubita
    • Writing – original draft
      Mohammad Fawzi Shubita
    • Writing – review & editing
      Mohammad Fawzi Shubita, Nahed Habis Alrawashedh
    • Software
      Nahed Habis Alrawashedh
    • Supervision
      Nahed Habis Alrawashedh
    • Validation
      Nahed Habis Alrawashedh