Abstract
Background: The US banking sector’s evolution underscores the growing importance of intellectual and human capital in determining firm value. Due to technological advancement and regulatory changes, many banks still undervalue these intangible assets.
Aim of the study: This study aims to quantify the impact of intellectual and human capital on firm value within the US banking sector, highlighting their role in enhancing competitive advantage.
Methodology: A quantitative approach was utilised, analysing panel data from US banks through econometric techniques, including fixed and random effects models, to examine correlations and the Hausman test.
Download full abstract textIntroduction
The US banking sector has experienced significant transformation in recent decades, driven by technological advancement, regulatory changes, and the increasing importance of tangible assets such as intellectual and human capital. Bank’s ability to leverage intellectual capital such as proprietary technologies, patents, and data analytics capabilities has become critical for sustaining competitive advantages in this rapidly evolving industry. Moreover, human capital, encompassing employee’s skills, expertise, and innovation capacity, plays a crucial role in determining a bank’s success and overall firm value. Based on the expanding concept of knowledge management, intellectual capital can be defined as all the knowledge assets of a firm that augment its competitiveness: innovation capital, relationship capital, and knowledge capital.
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