Impact Of IC on Bank Stability with Moderating Effect of CG

日期 : Sep 2023 - Jan 2024

<div><p>The ambition of this project is to discuss the inherent factors of the banking system as well as the short-term and long-term effects of intellectual capital efficiency on bank stability in Pakistan. The VAIC model is used to measure the ICE, which is composed of three capitals: human, relational, and structural. The findings of the statistical panel regression support the hypothesis that higher Intellectual capital efficiency relates to improved bank stability and supports the resource-based theory. Other than that, research also reveals the long-term contribution of intellectual capital efficiency to bank stability. Further, the control variable CG index proxies such as bank measurement, bank age, board composition, and bank size demonstrate a favorable effect on bank Stability. The resource-based strategy can be applied to enhance intangible investments and create a long-lasting competitive advantage. Future assessment is anticipated to take into account the risk management approach to examine the association between IC efficiency and banks' stability.</p></div>