DETERMINANTS OF INTELLECTUAL CAPITAL & ITS IMPACT ON COMPANY'S PERFORMANCE

Abstract

Purpose: The objective of the study is to identify the effect of determinants of intellectual capitalon company’s performance using panel secondary data. Methodology & Design: The sample population for the current study was selected as the conventional banks of Pakistan for analysis while ample period was selected as 2010 to 2017. However, Descriptive Statistics, Hausman Test &OLS analysis using random-effect, has been employed for data analysis using EViews 9. Findings: The results after performing analysis showed that intellectual capital has significantly positive impact on performance of conventional banks, particularly with respect to Human capital efficiency and Structural capital efficiency, whereas capital employed efficiency has shown an insignificance relationship with the financial performance of banks in Pakistan. Limitations: Comparatively smaller sample population; wherein, consideration to specific sector and region also restrain its generalizability to larger proportion and applicability comprehension. Recommendations: Organizations should be more focus on their process flows, procedures which environment, where such allows human capital to work more efficiently in an available that allows human resource to to enhance their way platforms and opportunities are of doing work and performing it in most effective manner.