The performance analysis of the Turkish banks through vaictm and MV/BV ratio

Abstract

The objective of this study is to determine if there is a meaningful relationship between the VAIC™ (Value Added Intellectual Coefficient) values and MV/BV (Market Value/Book Value) ratios of Turkish Banks, of which stocks are exchanged at the Istanbul Stock Market (IMKB). The paper begins with the introduction of the concepts ‘intellectual capital’, ‘company performance’, and ‘VAIC™’. Then, the association between VAIC™ values and MV/BV ratios of twelve banks in Turkey is empirically explored for the years 1998 and 2001. According to the data of these four years, there has been no meaningful relationship between the dependent variable MV/BV and the independent variables VACA (Value Added Capital Coefficient) STVA (Structural Capital Value Added Coefficient), and VAHU (Value Added Human Capital Coefficient), the three sub-components VAIC™ consists of.