Iranian Journal of Finance

How Value Added of Intellectual Coefficient affect Iranian Banking Performance (A CAMEL Approach)

Document Type : Original Article

Authors

Mohammad Pourgholamali 1
Mohsen Hamidian 2
Roya Darabi 3

1 Ph.D Candidate, Department of Economy and Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran.

2 Assistant Prof., Department of Economy and Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran.

3 Associated Prof., Department of Economy and Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran.

10.61186/ijf.2025.475398.1484
Abstract
Today, numerous studies have investigated the role and effects of intangible assets on companies' performance. The existence of extensive literature regarding the use of intangible assets as a competitive advantage, in addition to the importance of performance dimensions affected by these assets, is the focus of the attention of various researchers. Regarding examining the performance dimensions of banks, the CAMEL model can be a suitable basis for evaluating the effects of intellectual capital. Although there are many models for calculating intellectual capital, the added value of the intellectual coefficient is still one of the most common methods. Therefore, in the current research, the effects of intellectual capital (based on the calculation model of the coefficient of added value of intellectual capital) on the performance of banks (based on the CAMEL model) have been investigated. Also, the shape of the function (linear or nonlinear) has been investigated in this research. The results show that the value added of the intellectual capital coefficient in the ninth quantile has a significant relationship with the variable of capital adequacy. The form of the relationship is nonlinear and inverted U. This variable affects the quality of assets in the seventh to ninth quantiles, management in the eighth and ninth quantiles, income in the first and second and sixth to ninth quantiles, and liquidity in the first to fourth quantiles. The shape of the function is U, inverse U, and inverse U, respectively.

Keywords

Intellectual Capital
CAMEL
Intangible Assets
Banking
Performance Management
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Iranian Journal of Finance
Volume 9, Issue 2
2025
Pages 107-125

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