Intellectual Capital and Risk Taking in Bank Industry

Considering the importance of risk management in the banking industry, several studies can be found on the relationship between the effects of intellectual capital and banking risk. In some studies, it has been observed that intellectual capital affects the credit risk and insolvency risk of banks. Investigating the existence of a stable relationship between intellectual capital and banks' risk-taking is still one of the important research topics. In addition, the fact that banks are more ambiguous compared to some other industries, which can result in more risk-taking behaviors, leads to the interest of researchers to investigate the issue and the necessity of its importance. The present study examines the value-added of intellectual coefficient (VAIC) and its components on the risk-taking of banks in Iranian banking industry. Quantile regression method was used to investigate the issue and the sample was the stock market banks in Iran in the period of 2012 to 2021. The results of the study show that the VAIC in the first to fourth quantiles has a significant relationship with credit risk. Examining the components of the VAIC shows that capital employed efficiency (CEE) has an effect on insolvency risk in the second to ninth quantiles. This factor has no effect on credit risk in any of the quantiles. The human capi‏tal efficiency (HCE) has a significant relationship with credit risk in all quantiles, but it has a significant relationship with liquidity risk in the second to fifth, eighth and ninth quantiles. Regarding structural capital, the structural capital efficiency (SCE) has no significant effect on Insolvency risk, but a significant relationship has been observed between this variable and credit risk in the first to fifth quantiles.