The influence of corporate governance factors on intellectual capital performance: Panel data evidence from the Indian banking sector

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This study empirically examined the relationship between corporate governance factors, namely CEO duality, independent directors, board meeting frequency, board size, gender diversity, audit committee size and audit committee meetings, and intellectual capital performance. The above premise is studied using data of 26 commercial banks listed on the Indian Stock Exchange (NSE) from 2010 to 2020. The study used purposive sampling as the methodology and multiple regression models with VAIC and ROA as attributes. VAIC measures the efficiency of intellectual capital. ROA is used to determine financial performance. The results of the study reveal that the use of observational data, independent directors, frequency of board meetings and audit committee size has a positive and significant effect on intellectual performance at a 10% significance level. According to the study’s findings, audit committee meetings have a positive impact on intellectual capital performance at a 1% significance level, while board size has a negative impact at a 5% significance level. Among the study results, CEO duality, board meeting frequency and board size have a positive and significant effect on financial performance with 1% significance. Board gender diversity has a negative impact on financial performance. The study’s findings indicate that there is no single best way to design corporate governance that applies to all corporate situations, and that good corporate governance factors have a significant impact on improved intellectual capital performance.

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    • Table 1. Descriptive statistics
    • Table 2. Regression analyses for corporate governance factors’ impact on intellectual capital performance of scheduled commercial banks in India
    • Table 3. Regression analyses for corporate governance factors impact on financial performance of Scheduled Commercial Banks (SCBs) in India
    • Conceptualization
      Sathish Kotte, Irala Lokanandha Reddy
    • Funding acquisition
      Sathish Kotte
    • Investigation
      Sathish Kotte, Irala Lokanandha Reddy
    • Methodology
      Sathish Kotte, Irala Lokanandha Reddy
    • Software
      Sathish Kotte, Irala Lokanandha Reddy
    • Validation
      Sathish Kotte
    • Visualization
      Sathish Kotte
    • Writing – original draft
      Sathish Kotte, Irala Lokanandha Reddy
    • Writing – review & editing
      Sathish Kotte, Irala Lokanandha Reddy
    • Resources
      Irala Lokanandha Reddy
    • Supervision
      Irala Lokanandha Reddy