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1 – 2 of 2Nicholas Asare, Francis Aboagye-Otchere and Joseph Mensah Onumah
This study examines the nature of the relationship between board structures (BSs) and intellectual capital (IC) of banks in Africa.
Abstract
Purpose
This study examines the nature of the relationship between board structures (BSs) and intellectual capital (IC) of banks in Africa.
Design/methodology/approach
Using annual data from financial statements of 366 banks from 26 African countries from 2007 to 2015, the study estimates IC using the value-added intellectual coefficient (VAIC) and BSs using board size, board independence and board gender diversity. The system generalized method of moments and panel-corrected standard error estimation strategies are used to estimate panel regressions.
Findings
There is a significant negative relationship between board independence and intellectual capital. The results also indicate that the IC of banks does not depend on board size and board gender diversity.
Practical implications
The study's findings provide evidence of the extent to which BSs have been instituted to support investments in intellectual capital as a means of improving the performance of banks in Africa.
Originality/value
This study provides some empirical evidence from Africa's banking sector to justify that banks with better IC have boards that are less independent. This study is one of the few studies that employs many countries' data.
Details