The impact of intellectual capital efficiency on bank risk in Vietnam

Abstract

This paper aims to analyze the impact of intellectual capital efficiency on the risk of Vietnamese
commercial banks. Drawing on a research sample of 13 Vietnamese commercial banks during the period
2010- 2021, the authors use the Generalized Method of Moments (GMM) to investigate the impact of
variables reflecting the intellectual capital efficiency, including the efficiency of human capital- HCE, capital
employed- CEE and capital structure- SCE, to the risk of commercial banks (measured by Z-score and nonperforming loan ratio- NPL). The results show that higher intellectual capital efficiency leads to higher risk
(measured by Z- score) and lower credit risk. These findings have important implications on the regulation of
the banking system in general as well as on improving the effectiveness of risk management of commercial
banks in particular.