The Effect of Intellectual Capital Components On The Profitability of Commercial Banks Listed in the Tehran Stock Exchange: Using The Modified And Extended VAIC Model

Intellectual capital is known as a strategic and influential factor in the success of companies in creating value in the knowledge-based economy, which enables them to use tangible capital. Commercial banks, like any other business enterprise, seek to maximize their profits, but in recent years, the profitability of Iran's banking industry has decreased drastically. This issue is a warning for the whole of the society due to the impact of the stability of banks on Iran's economy. The main purpose of this article is to investigate the effect of intellectual capital components on the profitability of commercial banks during the years 2015 to 2020. For this purpose, we have examined the effect of intellectual capital components on the rate of return on equity and the rate of return on assets using a modified and expanded VIAC model. The results of the regression in two models indicate that the capital employed efficiency (financial capital) has had the greatest effect on the profitability of commercial banks. Furthermore, human capital has been identified as a factor that increases the profitability of commercial banks. But structural capital and innovation capital and the size as control variable, had a negative effect on the profitability of commercial banks. Also,the impact of relational capital efficiency, financial leverage and GDP growth rate variables on the profitability of commercial banks, was not significant.