Research On The Influence Of Intellectual Capital To Commercial Banks Performance In China

Since entering the 21 st century, the intensified trend of economic globalization not only makes the competition hot up in all walks of life, but also promotes the focus of competition between enterprises there has been a fundamental shift, from the past to the tangible physical capital competition to now with the talent of skills, knowledge, information and efficient operation as the core of Intellectual Capital(IC)competition. In the era of knowledge economy, with the homogeneity between the traditional factors of production enhancing, its ability to help enterprises to create relative advantage tend to be limited. Instead, IC is adding important weights to build the core competitiveness of enterprises. Its driving role to the performance of enterprises is also increasingly highlighted. So it is regarded as one of the most strategic resources of enterprises under the new competitive conditions. It is a pity that value-added effect of IC in Chinese commercial bank is not released in full as developed countries such as Britain and American commercial banks. Therefore commercial banks in China should rely on IC to realize its value or performance growth in the future. Thus to study the driving factors and formation mechanism of commercial bank performance from the perspective of IC, not only is a beneficial attempt in theory, but also helps to deepen our understanding to the effect of IC on business performance. In addition, study the influence of IC to commercial banks performance has a great practical significance to improve its business management, to obtain sustainable competitive advantage.This paper uses the combination of theoretical and empirical research method. First of all, in order to grasp the latest development in this field, researches about the relationship between IC and enterprise performance were reviewed, which also indicates the direction for this paper. Second, some related theory about the relationship between IC was stated in detail. Through the comparative analysis to advantages and disadvantages of related measurement methods of IC and bank performance, we choose Value Added Intellectual Capital method to measure IC and its constituent elements; choose return on net assets as the proxy variable of commercial bank performance. Then the process of IC impact on the performance of commercial bank was analyzed and several hypotheses were proposed. Thereafter, two different panel variable intercept model were constructed, respectively studied the IC and its constituent elements impact on the performance of commercial banks. The empirical results show that IC and its constituent elements all have positive influence on the performance, but different elements on the performance of the positive influence degree have differences. Specifically, relative to the factors of human capital, structure capital elements have more significant positive impact on bank performance. In addition, the study also found that physical capital of commercial banks also has significant positive influence on its performance, and its contribution to the bank performance improvement was stronger than IC and its constituent elements.Finally, according to the detailed analysis of the results, some suggestions were putted forward to help the commercial banks to utilize and management IC more efficiently under the new normal, then assisting in the ascension of its performance and sustainable development.