2,389
Views
3
CrossRef citations to date
0
Altmetric
BANKING & FINANCE

The moderating role of income diversification on the relationship between intellectual capital and bank performance evidence from Viet Nam

ORCID Icon, &
Article: 2182621 | Received 21 Aug 2022, Accepted 16 Feb 2023, Published online: 06 Mar 2023

References

  • Abedifar, P., Molyneux, P., & Tarazi, A. (2018). Non-interest income and bank lending. Journal of Banking & Finance, 87, 411–19. https://doi.org/10.1016/j.jbankfin.2017.11.003
  • Abhayawansa, S., & Guthrie, J. (2010). Intellectual capital and the capital market: A review and synthesis. Journal of Human Resource Costing & Accounting, 14(3), 196–226. https://doi.org/10.1108/14013381011095472
  • Adu, D. A. (2022). Competition and bank risk-taking in Sub-Saharan Africa countries. SN Business & Economics, 2(7), 1–26. https://doi.org/10.1007/s43546-022-00250-1
  • Ahamed, M. M. (2017). Asset quality, non-interest income, and bank profitability: Evidence from Indian banks. Economic Modelling, 63, 1–14. https://doi.org/10.1016/j.econmod.2017.01.016
  • Akhtaruzzaman, M., Chiah, M., Docherty, P., & Zhong, A. (2021). Betting against bank profitability. Journal of Economic Behavior & Organization, 192, 304–323. https://doi.org/10.1016/j.jebo.2021.10.012
  • Alhassan, A. L. (2015). Income diversification and bank efficiency in an emerging market. Managerial Finance, 41(12), 1318–1335. https://doi.org/10.1108/MF-12-2014-0304
  • Alhassan, A. L., & Asare, N. (2016). Intellectual capital and bank productivity in emerging markets: Evidence from Ghana. Management Decision. https://doi.org/10.1108/MD-01-2015-0025
  • Alrashidi, A., & Alarfaj, O. (2020). The impact of intellectual capital efficiency on bank risks: Empirical evidence from the Saudi banking industry. International Journal of Economics and Financial Issues, 10(4), 206. https://doi.org/10.32479/ijefi.9959Alvino
  • Arellano, M. (2002). Sargan’s instrumental variables estimation and the generalized method of moments. Journal of Business & Economic Statistics, 20(4), 450–459. https://doi.org/10.1198/073500102288618595
  • Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of Econometrics, 68(1), 29–51. https://doi.org/10.1016/0304-4076(94)
  • Asare, N., Alhassan, A. L., Asamoah, M. E., & Ntow-Gyamfi, M. (2017). Intellectual capital and profitability in an emerging insurance market. Journal of Economic and Administrative Sciences, 33(1), 2–19. https://doi.org/10.1108/JEAS-06-2016-0016
  • Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
  • Bayraktaroglu, A. E., Calisir, F., & Baskak, M. (2019). Intellectual capital and firm performance: An extended VAIC model. Journal of Intellectual Capital, 20(3), 406–425. https://doi.org/10.1108/JIC-12-2017-0184
  • Berger, A. N. (1995). The profit-structure relationship in banking–tests of market-power and efficient-structure hypotheses. Journal of Money, Credit and Banking, 27(2), 404–431. https://doi.org/10.2307/2077876
  • Bollen, L., Vergauwen, P., & Schnieders, S. (2005). Linking intellectual capital and intellectual property to company performance. Management Decision, 43(9), 1161–1185. https://doi.org/10.1108/00251740510626254
  • Bond, S. R. (2002). Dynamic panel data models: A guide to micro data methods and practice. Portuguese Economic Journal, 1(2), 141–162. https://doi.org/10.1007/s10258-002-0009-9
  • Bordeleau, É., & Graham, C. (2010). The impact of liquidity on bank profitability (No. 10-38). Bank of Canada.
  • Bourke, P. (1989). Concentration and other determinants of bank profitability in Europe, North America and Australia. Journal of Banking & Finance, 13(1), 65–79. https://doi.org/10.1016/0378-4266(89)
  • Cañibano, L. (2018). Accounting and intangibles: Contabilidad e intangibles. Revista de Contabilidad-Spanish Accounting Review, 21(1), 1–6. https://doi.org/10.1016/j.rcsar.2017.12.001
  • Cenciarelli, V. G., Greco, G., & Allegrini, M. (2018). Does intellectual capital help predict bankruptcy? Journal of Intellectual Capital, 19(2), 321–337. https://doi.org/10.1108/JIC-03-2017-0047
  • Chang, S.-C., & Wang, C.-F. (2007). The effect of product diversification strategies on the relationship between international diversification and firm performance. Journal of World Business, 42(1), 61–79. https://doi.org/10.1016/j.jwb.2006.11.002
  • Chen, A. H. L., Wang, X., Lee, J. Z. H., & Fu, C. Y. (2013). Biotech firm valuation in an emerging market–evidence from Taiwan. Asia-Pacific Journal of Business Administration. https://doi.org/10.1108/17574321311321586
  • Chiorazzo, V., Milani, C., & Salvini, F. (2008). Income diversification and bank performance: Evidence from Italian banks. Journal of Financial Services Research, 33(3), 181–203. https://doi.org/10.1007/s10693-008-0029-4
  • Clarke, M., Seng, D., & Whiting, R. H. (2011). Intellectual capital and firm performance in Australia. Journal of Intellectual Capital, 12(4), 505–530. https://doi.org/10.1108/14691931111181706
  • Clark, B., Francis, B., & Simaan, M. (2022). Pricing Banks: Risk and Return in an Opaque Industry. https://doi.org/10.2139/ssrn.3558546
  • Delpachitra, S., & Lester, L. (2013). Non‐Interest Income: Are Australian Banks Moving Away from their Traditional Businesses? Economic Papers: A Journal of Applied Economics and Policy, 32(2), 190–199. https://doi.org/10.1111/1759-3441.12032
  • Demirgüç-Kunt, A., & Huizinga, H. (1999). Determinants of commercial bank interest margins and profitability: Some international evidence. The World Bank Economic Review, 13(2), 379–408. https://doi.org/10.1093/wber/13.2.379
  • DeYoung, R., & Roland, K. P. (2001). Product mix and earnings volatility at commercial banks: Evidence from a degree of total leverage model. Journal of Financial Intermediation, 10(1), 54–84. https://doi.org/10.1006/jfin.2000.0305
  • Dietrich, A., & Wanzenried, G. (2014). The determinants of commercial banking profitability in low-, middle-, and high-income countries. The Quarterly Review of Economics and Finance, 54(3), 337–354. https://doi.org/10.1016/j.qref.2014.03.001
  • Doan, A.-T., Lin, K.-L., & Doong, S.-C. (2018). What drives bank efficiency? The interaction of bank income diversification and ownership. International Review of Economics & Finance, 55, 203–219. https://doi.org/10.1016/j.iref.2017.07.019
  • Duho, K. C. T., Onumah, J. M., & Owodo, R. A. (2019). Bank diversification and performance in an emerging market. International Journal of Managerial Finance, 16(1), 120–138. https://doi.org/10.1108/IJMF-04-2019-0137
  • Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10‐11), 1105–1121. https://doi.org/10.1002/1097-0266(200010/11)21:10/11<1105::AID-SMJ133>3.0.CO;2-E
  • Elyasiani, E., & Wang, Y. (2012). Bank holding company diversification and production efficiency. Applied Financial Economics, 22(17), 1409–1428. https://doi.org/10.1080/09603107.2012.657351
  • Firer, S., & Williams, S. M. (2003). Intellectual capital and traditional measures of corporate performance. Journal of Intellectual Capital, 4(3), 348–360. https://doi.org/10.1108/14691930310487806
  • Ghosh, S. K., & Maji, S. G. (2014). The impact of intellectual capital on bank risk: Evidence from Indian banking sector. IUP Journal of Financial Risk Management, 11(3), 18. https://ssrn.com/abstract=2633458
  • Githaiga, P. N. (2022). Intellectual capital and bank performance: The moderating role of income diversification. Asia-Pacific Journal of Business Administration(ahead-of-print). https://doi.org/10.1108/APJBA-06-2021-0259
  • Goh, P. C. (2005). Intellectual capital performance of commercial banks in Malaysia. Journal of Intellectual Capital. https://doi.org/10.1108/14691930510611120
  • Hamdan, A. (2018). Intellectual capital and firm performance: Differentiating between accounting-based and market-based performance. International Journal of Islamic and Middle Eastern Finance and Management, 11(1), 139–151. https://doi.org/10.1108/IMEFM-02-2017-0053
  • Hansen, L. P. (1982). Large sample properties of generalized method of moments estimators. Econometrica: Journal of the Econometric Society, 50(4), 1029–1054. https://doi.org/10.2307/1912775
  • Haris, M., Yao, H., Tariq, G., Malik, A., & Javaid, H. M. (2019). Intellectual capital performance and profitability of banks: Evidence from Pakistan. Journal of Risk and Financial Management, 12(2), 56. https://doi.org/10.3390/jrfm12020056
  • Hsu, L. C., & Wang, C. H. (2012). Clarifying the effect of intellectual capital on performance: The mediating role of dynamic capability. British Journal of Management, 23(2), 179–205. https://doi.org/10.1111/j.1467-8551.2010.00718.x
  • Hunjra, A. I., Hanif, M., Mehmood, R., & Nguyen, L. V. (2020). Diversification, corporate governance, regulation and bank risk-taking. Journal of Financial Reporting and Accounting. https://doi.org/10.1108/JFRA-03-2020-0071
  • Iazzolino, G., & Laise, D. (2013). Value added intellectual coefficient (VAIC): A methodological and critical review. Journal of Intellectual Capital, 14(4), 547–563. https://doi.org/10.1108/JIC-12-2012-0107
  • Joshi, M., Cahill, D., Sidhu, J., & Kansal, M. (2013). Intellectual capital and financial performance: An evaluation of the Australian financial sector. Journal of Intellectual Capital, 14(2), 264–285. https://doi.org/10.1108/14691931311323887
  • Khan, S. Z., Yang, Q., & Waheed, A. (2019). Investment in intangible resources and capabilities spurs sustainable competitive advantage and firm performance. Corporate Social Responsibility and Environmental Management, 26(2), 285–295. https://doi.org/10.1002/csr.1678
  • Kramar, R., & Steane, P. (2012). Emerging HRM skills in Australia. Asia-Pacific Journal of Business Administration, 4(2), 139–157. https://doi.org/10.1108/17574321211269289
  • Le, T. D. (2017). The interrelationship between net interest margin and non-interest income: Evidence from Vietnam. International Journal of Managerial Finance, 13(5), 521–540. https://doi.org/10.1108/IJMF-06-2017-0110
  • Le, T. D. (2020). The interrelationship among bank profitability, bank stability, and loan growth: Evidence from Vietnam. Cogent Business & Management, 7(1), 1840488. https://doi.org/10.1080/23311975.2020.1840488
  • Lee, -C.-C., Yang, S.-J., & Chang, C.-H. (2014). Non-interest income, profitability, and risk in banking industry: A cross-country analysis. The North American Journal of Economics and Finance, 27, 48–67. https://doi.org/10.1016/j.najef.2013.11.002
  • Le, T. D. Q., & McMillan, D. (2021). Geographic expansion, income diversification, and bank stability: Evidence from Vietnam. Cogent Business & Management, 8(1), 1885149. https://doi.org/10.1080/23311975.2021.1885149
  • Le, T. D., & Ngo, T. (2020). The determinants of bank profitability: A cross-country analysis. Central Bank Review, 20(2), 65–73. https://doi.org/10.1016/j.cbrev.2020.04.001
  • Le, T. D., Nguyen, D. T., & McMillan, D. (2020). Intellectual capital and bank profitability: New evidence from Vietnam. Cogent Business & Management, 7(1), 1859666. https://doi.org/10.1080/23311975.2020.1859666
  • Lin, C. Y. Y., & Edvinsson, L. (2008). National intellectual capital: Comparison of the Nordic countries. Journal of Intellectual Capital. https://doi.org/10.1108/14691930810913140
  • Li, M., & Wong, -Y.-Y. (2003). Diversification and economic performance: An empirical assessment of Chinese firms. Asia Pacific Journal of Management, 20(2), 243–265. https://doi.org/10.1023/A:1023804904383
  • Li, L., & Zhang, Y. (2013). Are there diversification benefits of increasing noninterest income in the Chinese banking industry? Journal of Empirical Finance, 24, 151–165. https://doi.org/10.1016/j.jempfin.2013.10.004
  • Luu, H. N., Nguyen, L. Q. T., Vu, Q. H., & Tuan, L. Q. (2019). Income diversification and financial performance of commercial banks in Vietnam: Do experience and ownership structure matter? Review of Behavioral Finance, 12(3), 185–199. https://doi.org/10.1108/RBF-05-2019-0066
  • Maji, S. G., & Goswami, M. (2016). Intellectual capital and firm performance in emerging economies: The case of India. Review of International Business and Strategy, 26(3), 410–430. https://doi.org/10.1108/RIBS-03-2015-0019
  • Maji, S. G., & Hussain, F. (2021). Technical efficiency, intellectual capital efficiency and bank performance in emerging markets: The case of India. Journal of Advances in Management Research, 18(5), 708–737. https://doi.org/10.1108/JAMR-09-2020-0218
  • Markowitz, H. (1952). Portfolio Selection The Journal of Finance. American Finance Association, 7, 1.
  • Martynova, N., Ratnovski, L., & Vlahu, R. (2020). Bank profitability, leverage constraints, and risk-taking. Journal of Financial Intermediation, 44, 100821. https://doi.org/10.1016/j.jfi.2019.03.006
  • Maudos, J., & Solís, L. (2009). The determinants of net interest income in the Mexican banking system: An integrated model. Journal of Banking & Finance, 33(10), 1920–1931. https://doi.org/10.1016/j.jbankfin.2009.04.012
  • Meles, A., Porzio, C., Sampagnaro, G., & Verdoliva, V. (2016). The impact of the intellectual capital efficiency on commercial banks performance: Evidence from the US. Journal of Multinational Financial Management, 36, 64–74. https://doi.org/10.1016/j.mulfin.2016.04.003
  • Mention, A. L., & Bontis, N. (2013). Intellectual capital and performance within the banking sector of Luxembourg and Belgium. Journal of Intellectual Capital, 14(2), 286–309. https://doi.org/10.1108/14691931311323896
  • Mercieca, S., Schaeck, K., & Wolfe, S. (2007). Small European banks: Benefits from diversification? Journal of Banking & Finance, 31(7), 1975–1998. https://doi.org/10.1016/j.jbankfin.2007.01.004
  • Merino, P. B., Grandval, S., Upson, J., & Vergnaud, S. (2014). Organizational slack and the capability life-cycle: The case of related diversification in a technological SME. The International Journal of Entrepreneurship and Innovation, 15(4), 239–250. https://doi.org/10.5367/ijei.2014.0169
  • Meslier, C., Tacneng, R., & Tarazi, A. (2014). Is bank income diversification beneficial? Evidence from an emerging economy. Journal of International Financial Markets, Institutions and Money, 31, 97–126. https://doi.org/10.1016/j.intfin.2014.03.007
  • Mohapatra, S., Jena, S. K., Mitra, A., & Tiwari, A. K. (2019). Intellectual capital and firm performance: Evidence from Indian banking sector. Applied Economics, 51(57), 6054–6067. https://doi.org/10.1080/00036846.2019.1645283
  • Mondal, A., & Ghosh, S. K. (2012). Intellectual capital and financial performance of Indian banks. Journal of Intellectual Capital, 13(4), 515–530. https://doi.org/10.1108/14691931211276115
  • Nadeem, M., Farooq, M. B., & Ahmed, A. (2019). Does female representation on corporate boards improve intellectual capital efficiency? Journal of Intellectual Capital, 20(5), 680–700. https://doi.org/10.1108/JIC-01-2019-0007
  • Najibullah, S. (2005). An empirical investigation of relationship between intellectual capital and firm’s market value and financial performance in context of commercial banks of Bangladesh. Bachelors of Business Administration thesis, Independent University,
  • Nath, P., Nachiappan, S., & Ramanathan, R. (2010). The impact of marketing capability, operations capability and diversification strategy on performance: A resource-based view. Industrial Marketing Management, 39(2), 317–329. https://doi.org/10.1016/j.indmarman.2008.09.001
  • Neffke, F., & Henning, M. (2013). Skill relatedness and firm diversification. Strategic Management Journal, 34(3), 297–316. https://doi.org/10.1002/smj.2014
  • Nepali, S. R. (2018). Income diversification and bank risk-return trade-off on the Nepalese commercial banks. Asian Economic and Financial Review, 8(2), 279–293. https://doi.org/10.18488/journal.aefr.2018.82.279.293
  • North, K., & Kumta, G. (2018). Towards a digitally enabled knowledge society (Knowledge Management (pp. 1–31). Springer. https://doi.org/10.1007/978-3-319-59978-6_1
  • Onumah, J. M., & Duho, K. C. T. (2019). Intellectual capital: Its impact on financial performance and financial stability of Ghanaian banks. Athens Journal of Business and Economics, 5(3), 243–268. https://doi.org/10.30958/ajbe.5-3-4
  • Ousama, A. A., Hammami, H., & Abdulkarim, M. (2020). The association between intellectual capital and financial performance in the Islamic banking industry. International Journal of Islamic and Middle Eastern Finance and Management, 13(1), 75–93. https://doi.org/10.1108/IMEFM-05-2016-0073
  • Ozkan, N., Cakan, S., & Kayacan, M. (2017). Intellectual capital and financial performance: A study of the Turkish Banking Sector. Borsa Istanbul Review, 17(3), 190–198. https://doi.org/10.1016/j.bir.2016.03.001
  • Paltrinieri, A., Dreassi, A., Rossi, S., & Khan, A. (2021). Risk-adjusted profitability and stability of Islamic and conventional banks: Does revenue diversification matter? Global Finance Journal, 50, 100517. https://doi.org/10.1016/j.gfj.2020.100517
  • Pennathur, A. K., Subrahmanyam, V., & Vishwasrao, S. (2012). Income diversification and risk: Does ownership matter? An empirical examination of Indian banks. Journal of Banking & Finance, 36(8), 2203–2215. https://doi.org/10.1016/j.jbankfin.2012.03.021
  • Penrose, E. (1959). The theory of the growth of the firm. NY: Oxford University Press.
  • Perry, P. (1992). Do banks gain or lose from inflation? Journal of Retail Banking, 14(2), 25–31. https://go.gale.com/ps/i.doid=GALE%7CA12634781&sid=googleScholar&v=2.1&it=r&linkaccess=abs&issn=01952064&p=AONE&sw=w&userGroupName=anon%7E73d8a78f
  • Prahalad, C. K. (1993). The role of core competencies in the corporation. Research-Technology Management, 36(6), 40–47. https://doi.org/10.1080/08956308.1993.11670940
  • Pulic, A. (1998). Measuring the performance of intellectual potential in knowledge economy. 2nd McMaster Word Congress on Measuring and Managing Intellectual Capital by the Austrian Team for Intellectual Potential. McMaster University Hamilton.
  • Pulic, A. (2000). VAIC™ an accounting tool for IC management. International Journal of Technology Management, 20(5/6/7/8), 702–714. https://doi.org/10.1504/IJTM.2000.002891
  • Pulic, A. (2004). Intellectual capital–does it create or destroy value? Measuring Business Excellence, 8(1). https://doi.org/10.1108/13683040410524757
  • Ramanathan, R., Ramanathan, U., & Zhang, Y. (2016). Linking operations, marketing and environmental capabilities and diversification to hotel performance: A data envelopment analysis approach. International Journal of Production Economics, 176, 111–122. https://doi.org/10.1016/j.ijpe.2016.03.010
  • Riahi‐Belkaoui, A. (2003). Intellectual capital and firm performance of US multinational firms: A study of the resource‐based and stakeholder views. Journal of Intellectual Capital, 4(2), 215–226. https://doi.org/10.1108/14691930310472839
  • Sanya, S., & Wolfe, S. (2011). Can banks in emerging economies benefit from revenue diversification? Journal of Financial Services Research, 40(1), 79–101. https://doi.org/10.1007/s10693-010-0098-z
  • Saona, P. (2016). Intra-and extra-bank determinants of Latin American Banks’ profitability. International Review of Economics & Finance, 45, 197–214. https://doi.org/10.1016/j.iref.2016.06.004
  • Sharma, S., & Anand, A. (2018). Income diversification and bank performance: Evidence from BRICS nations. International Journal of Productivity and Performance Management, 67(9), 1625–1639. https://doi.org/10.1108/IJPPM-01-2018-0013
  • Sharma, P., Gounder, N., & Xiang, D. (2013). Foreign banks, profits, market power and efficiency in PICs: Some evidence from Fiji. Applied Financial Economics, 23(22), 1733–1744. https://doi.org/10.1080/09603107.2013.848026
  • Shiu, H.-J. (2006). The application of the value added intellectual coefficient to measure corporate performance: Evidence from technological firms. International Journal of Management, 23(2), 356. https://www.proquest.com/scholarly-journals/application-value-added-intellectual-coefficient/docview/233230457/se-2
  • Singh, S., Sidhu, J., Joshi, M., & Kansal, M. (2016). Measuring intellectual capital performance of Indian banks: A public and private sector comparison. Managerial Finance, 42(7), 635–655. https://doi.org/10.1108/MF-08-2014-0211
  • Smriti, N., & Das, N. (2018). The impact of intellectual capital on firm performance: A study of Indian firms listed in COSPI. Journal of Intellectual Capital, 19(5), 935–964. https://doi.org/10.1108/JIC-11-2017-0156
  • Soewarno, N., & Tjahjadi, B. (2020). Measures that matter: An empirical investigation of intellectual capital and financial performance of banking firms in Indonesia. Journal of Intellectual Capital, 21(6), 1085–1106. https://doi.org/10.1108/JIC-09-2019-0225
  • Ståhle, P., Ståhle, S., & Aho, S. (2011). Value added intellectual coefficient (VAIC): A critical analysis. Journal of Intellectual Capital, 12(4), 531–551. https://doi.org/10.1108/14691931111181715
  • Stiroh, K. J., & Rumble, A. (2006). The dark side of diversification: The case of US financial holding companies. Journal of Banking & Finance, 30(8), 2131–2161. https://doi.org/10.1016/j.jbankfin.2005.04.030
  • Tan, Y., & Floros, C. (2012). Bank profitability and inflation: The case of China. Journal of Economic Studies, 39(6), 675–696. https://doi.org/10.1108/01443581211274610
  • Tan, H. P., Plowman, D., & Hancock, P. (2007). Intellectual capital and financial returns of companies. Journal of Intellectual Capital. https://doi.org/10.1108/14691930710715079
  • Ting, I. W. K., Chen, F.-C., Kweh, Q. L., Sui, H. J., & Le, H. T. M. (2021). Intellectual capital and bank branches’ efficiency: An integrated study. Journal of Intellectual Capital. https://doi.org/10.1108/JIC-07-2020-0245
  • Tran, D. B., & Vo, D. H. (2018). Should bankers be concerned with Intellectual capital? A study of the Thai banking sector. Journal of Intellectual Capital, 19(5), 897–914. https://doi.org/10.1108/JIC-12-2017-0185
  • Valaei, N., Rezaei, S., Bressolles, G., & Dent, M. M. (2021). Indispensable components of creativity, innovation, and FMCG companies’ competitive performance: A resource-based view (RBV) of the firm. Asia-Pacific Journal of Business Administration. https://doi.org/10.1108/APJBA-11-2020-0420
  • Valverde, S. C., & Fernández, F. R. (2007). The determinants of bank margins in European banking. Journal of Banking & Finance, 31(7), 2043–2063. https://doi.org/10.1016/j.jbankfin.2006.06.017
  • Venkatraman, N., & Ramanujam, V. (1986). Measurement of business performance in strategy research: A comparison of approaches. Academy of Management Review, 11(4), 801–814. https://doi.org/10.5465/amr.1986.4283976
  • Youndt, M. A., Subramaniam, M., & Snell, S. A. (2004). Intellectual capital profiles: An examination of investments and returns. Journal of Management Studies, 41(2), 335–361. https://doi.org/10.1111/j.1467-6486.2004.00435.x
  • Zeghal, D., & Maaloul, A. (2010). Analysing value added as an indicator of intellectual capital and its consequences on company performance. Journal of Intellectual Capital, 11(1), 39–60. https://doi.org/10.1108/14691931011013325