Regresar

Intellectual capital and financial performance of Ecuadorian banks: A PLS-SEM approach

Abstract:

The purpose of this study was to analyze the influence of intellectual capital on the financial performance of banks. The quantitative research method was the PLS-SEM analysis technique through the application of SmartPLS4. The study sample consisted of 15 private banks operating in Ecuador for the period 2003-2021. The results showed the consistency of the financial performance of the banks measured by ROA with HCE and CEE as the most influential elements of the intellectual capital. Banking variables such as asset size and experience are not influential on ROA, so the mediation analysis indicates that there are no indirect effects of intellectual capital components through banking variables.