Do Ex-Bureaucrats on Boards Improve Efficiency in Intellectual Capital? Evidence from an Emerging Country

Relying on the resource dependence theory, this study investigates the effect on intellectual capital efficiency and its components of having board members who are former bureaucrats, using a sample of banks in Turkiye. The study uses a sample of 344 fırm-year observations of banks in Turkiye between 2005 and 2018 to investigate the relationship between ex-bureaucrat board members and intellectual capital efficiency. In addition to ordinary least squares (OLS), the curret study employs instrumental variables with a two-stage least squares model to mitigate potential endogeneity concerns. Our findings show that ex-bureaucrat board members have a significantly positive association with intellectual capital efficiency at banks in Turkiye