Intellectual capital and bank productivity in emerging markets: evidence from Ghana

Abdul Latif Alhassan ( UNIVERSITY OF CAPE TOWN Bellville, Cape Town South Africa )
Nicholas Asare ( Methodist University Ghana ACCRA Ghana )

Management Decision

ISSN: 0025-1747

Publication date: 3 March 2016



This paper examines the effect of intellectual capital on bank productivity in an emerging market in Africa.


The Malmquist Productivity Index is employed to estimate productivity growth of 18 banks in Ghana from 2003 to 2011 while the Value Added Intellectual Coefficient is used to measure bank intellectual capital performance. The panel-corrected standard errors estimation technique is used to estimate a panel regression model with Malmquist Productivity Index as the dependent variable. Bank market concentration and bank size are controlled for in the regression analysis.


We find productivity growth to be largely driven by efficiency changes compared to technological changes. The results from the regression analysis indicate that Value Added Intellectual Coefficient has a positive effect on the productivity of banks in Ghana. We also find human capital efficiency and capital employed efficiency as the components of Value Added Intellectual Coefficient that drive productivity growth in the banking industry. Bank size and industry concentration are also identified as significant drivers of productivity in the market.

Practical implications

The study’s findings support investments in intellectual capital as a means of improving the performance of banks in emerging markets


To the best of our knowledge, this is the first study to empirically examine the relationship between intellectual capital and productivity in an emerging banking market in Africa.


Alhassan, A. and Asare, N. (2016), "Intellectual capital and bank productivity in emerging markets: evidence from Ghana", Management Decision, Vol. 54 No. 3.

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