The Intellectual Capital Performance of Polish Banks: An Application of VAIC™ Model
Financial Internet Quarterly “e-Finanse”, 2013, vol. 9, nr 2, ISSN: 1734-039X;
9 Pages Posted: 15 Nov 2012 Last revised: 11 Dec 2013
Date Written: November 14, 2012
In the knowledge economy intangible resources are the primary value drivers. This is particularly true of companies such as Banks. However, intangible resources (Intellectual Capital) appear difficult to measure. Today, there are several methods that allows to measure Intellectual Capital in listed companies. However, not all methods of measurement are adequate for listed Banks. The paper uses the Value Added of Intellectual Coefficient VAIC™ ratio, to measure the Intellectual Capital efficiency of the Polish listed Banks using a five years period data set from 2005 to 2009. Three value efficiency indicators, Human Capital Efficiency (HCE), Capital Employed Efficiency (CEE) and Structural Capital Efficiency (SCE) which are the components of VAIC™ ratio, where used in the analysis. The data set was divided into two groups of banks. First group was 10 listed Polish Banks and second group was 10 listed comparable Banks from Europe (the peer group). The results of the rankings of the banks for the average of five years (2005-2009) showed that for VAIC™ the top two performers in the study were Komercni Banka and BRD Groupe Societe Generale S.A. The BCGE - Banque Cantonale de Geneve, Bankas Snoras and BOŚ Bank was the worst performers. The results of ranking based on Human Capital Efficiency (HCE), showed similar results as that of VAIC™. There was observed a significant decrease of VAIC™ ratio in the years 2008 and 2009 which was caused by crisis on financial markets. The results extend the understanding of the Intellectual Capital role in creation of sustainable advantages for Banks in developing economies.
Keywords: VAIC™, Intellectual Capital, Polish banking sector, intangibles
JEL Classification: G21, M20, O16
Suggested Citation: Suggested Citation