The effect of intellectual capital on profitability: An application in Turkish banking sector

The banking sector is one of the other sectors that constitute the world economy. The banking sector has an important place among other sectors that constitute the economy. Besides the primary market dealer position of banks, they need to earn profits for sustaining their existence, as same as every firm, in the market. Therefore, there is a need for evaluating intellectual capital besides physical capital and financial capital for firm performance in the banking sector. In this research, the relationship between intellectual capital and profitability between the years of 2009 and 2017 on 26 different banks which operate in Turkey. In this research, it is illustrated the effect of capital employed efficiency, human capital efficiency and structural capital efficiency on profitability with the method of panel data analysis. The result which are obtained indicate that intellectual capital and mainly structural capital efficiency have positive impact on profitability between the years of 2009 and 2017 in Turkish banking sector.