Examining the Impact of Intellectual Capital Performance on Financial Performance in Islamic Banks

Abstract This study explores the intellectual capital (IC) performance of Islamic banks (IBs) and examines impact on financial in terms profitability productivity IBs. The IC features are also examined individually to identify primary driver their individual IBs’ performance. A quantitative method using multi regression analysis is utilised examine nexus between indicators. measurement uses Modified Value-Added Intellectual Coefficient (MVAIC™) which an extended model VAIC™. data were drawn from 49 IBs 2014 2018. empirical findings indicate that positively significant impacting measures, especially profitability, but inconclusively related productivity. Furthermore, when components analysed separately, these indicators show lesser uniform results. Capital employed efficiency human found be most influential this study, while structural does not Evidence demonstrates all significantly indicator. offers understanding its role may provide guidance different stakeholders including regulators management formulate structure relevant strategies create, utilize, maintain for more resilient banking sector, as extensive practical implications provided purpose.