The Research On Relationship Between The Intellectual Capital And The Performance Of Chinese Commercial Banks

Knowledge has become the most value-added potential factors of production and the most important strategic resources, which is gradually replacing the traditional elements such as land, capital and labor force as entering the second decade of the21st century. China is vigorously promoting the transformation of economic development; the financial industry is the core of modern economy. Commercial banks as the main body of the financial industry is facing more and more changes and challenges. Commercial banks which are facing the fierce market competition, and enriching the country’s financial markets, provide the foundation and conditions for innovation of financial services. Multinational banks have advantages of better governance structures, financial strengths and management experiences over the domestic banks. As it comes to the grim situation, China’s commercial banks must pay more attention to intellectual capital. Therefore, an accurate understanding of the connotation of intellectual capital, a rational view of the role of intellectual capital in the value creation process and the objective and scientific measurement methods to measure the value of intellectual capital and performance have a practical significance to improving the efficiency of intellectual capital and thus improving the performance of banks. This article is in the following order:The first chapter introduces the research backgrounds, research purposes and meanings. The second chapter is about the definition and composition of intellectual capital, the definition and evaluation of performance. The author found that the existing literature on the definition of intellectual capital are not uniform but has a common composition of intellectual capital. There are variety of methods to measuring intellectual capital and business performance. Chapter Ⅲ defines the related concepts of intellectual capital based on literature review, and then expounds the theoretical basis and measurement methods of the intellectual capital. The common methods are market-value and book-value method, Tobin’s Q value method, intellectual value-added coefficient France (VAIC France), balanced scorecard and the Skandia navigator and Sveiby (1997) intangible asset monitor model.In the fourth part, the research hypothesis is given on the basis of theoretical analysis, and then builds up the multiple linear regression models. The performance P is the dependent variable. ICE, CEE, HCE and SCE are the explanatory variables. And the SIZE, LVE are the control variables. After analysis, this thesis gets the outcome:intellectual capital, financial capital and structural capital have positive effects on bank performances. And bank performance is positively correlated with human capital, but insignificant.The last part of this thesis is based on the empirical results, which concludes that human capital for the performance impact is not immediately notable. That needs long-term investment and scientific program. However it has a positive effect on performance, and promotion is strong and sustainable. This article makes the following recommendations:Firstly, intensifying efforts to the scientific development of human capital; Secondly, we should pay attention to the cultivation of structural capital; Finally, allocating resources to human capital and structural capital efficiently and balanced.The main contribution of this thesis are at the following aspects:Firstly, this thesis summarizes and analyzes the banking status quo, the existing theories and researches which advance the necessity for this study; Secondly, this thesis defines the intellectual capital on the basis of the previous theocracies, which contains:the combined resources that controlled by enterprise and bring the future value. Improving the intellectual capital value-added method and eliminating the value-added which has nothing to do with the intellectual capital is proposed. Lastly, this thesis puts forward empirical conclusions according to recent data, and recommendations about intellectual capital based on the situation of China’s commercial bank’s management.