Testing the Relationship between the Efficiency of Value Added Intellectual Coefficient and Corporate Performance at Commercial Banks in Amman Stock Exchange (ASE)

The principal purpose of the present paper is to investigate the association between the efficiency of value added Intellectual Coefficient (VAIC) by the major components of a banks resource base {physical capital (CEE), human capital (HCE) and structural capital (SCE)} and three traditional dimensions of banks financial performance. The three traditional dimensions of banks financial performance are (1) profitability, (2) productivity and (3) market valuation. The study Used 14 commercial banks data drawn from Amman Stock Exchange (ASE) reporting period 2002-2007. The paper used two models to testing, the first between the Value Added Intellectual Coefficient (VAIC) as the efficiency measure of three intellectual capital components and market valuation. The second model explores the relation between every intellectual capital variables as independent variables and banks financial performance dimensions include return on assets, return on equity and employee productivity.