A Link of Intellectual Capital Performance with Corporate Performance: Comparative Study from Banking Sector in Pakistan
Wasim ul Rehman, Dr. Hafeez ur Rehman, Muhammad Usman, Nabila Asghar

Abstract
The aim of this study is to investigate the Intellectual Capital (IC) performance and its impact on financial performance of banking sector in Pakistan for the period of 2010. Intellectual Capital performance is measured by a well renowned approach Value Added Intellectual Coefficient (VAIC™) and its impact on financial returns of banks is analyzed through predictive analysis. VAIC™ has three major components Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE) and Capital Employed Efficiency (CEE). The empirical results reveal that Human Capital Efficiency (HCE) has substantive positive relationship with financial performance (ROE and ROA) at (P <0.05), Structural Capital Efficiency (SCE) with financial performance (ROE and ROA) at (P<0.05) and Capital Employed Efficiency (CEE) with financial performance (ROE) at (P<0.01). This study also suggests that Value added (VA) efficiency has significant and positive relation with (ROE and EPS) at (P<0.01) and (P<0.05) respectively where as VAIC™ also has a positive and significant relationship with (ROE) at (P<0.01).

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