Corporate governance components and intellectual capital: Evidence from Jordanian banks
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DOIhttp://dx.doi.org/10.21511/imfi.20(4).2023.22
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Article InfoVolume 20 2023, Issue #4, pp. 272-282
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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.
- Keywords
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JEL Classification (Paper profile tab)G34, L25, L21, M20
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References28
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Tables5
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Figures0
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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)
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