Navigating the nexus: intellectual capital and risk dynamics in Vietnam’s banking sector
This research examines the connection between intellectual capital (IC) and risk profile (credit risk, insolvency risk and liquidity risk) in the Vietnamese banking sector. The data were adopted from the quarterly financial statements of 27 commercial banks in Vietnam from 2008 to 2024. This paper used the value-added intellectual coefficient (VAIC) methodology to measure IC. The findings of the main analysis reveal that capital employed efficiency (CEE) and human capital efficiency (HCE) are associated with all three types of risk measured. The disaggregated ownership results indicate that only HCE is related to risks in state-owned commercial banks, whereas both HCE and CEE are linked to risks in private commercial banks. The analysis findings also suggest that the relationship between CEE and risk is moderated by income diversification, highlighting the importance of diverse management strategies for more effective risk management. By focusing on improving human capital, integrating risk management into their core strategies and leveraging technology, Vietnamese banks can effectively mitigate risks and enhance their financial stability. This paper is the first to examine the correlations between IC and banking risks in Vietnam. This study divided the ownership structure of Vietnamese banks into public and private banks. It also examined the moderating effect of income diversification on IC and bank risks in Vietnam.
Dai Binh Tran, Seh Young Kim, Tuong-Vy Nguyen
International Journal of Emerging Markets, Vol. ahead-of-print, No. ahead-of-print, pp.-
This research examines the connection between intellectual capital (IC) and risk profile (credit risk, insolvency risk and liquidity risk) in the Vietnamese banking sector.
The data were adopted from the quarterly financial statements of 27 commercial banks in Vietnam from 2008 to 2024. This paper used the value-added intellectual coefficient (VAIC) methodology to measure IC.
The findings of the main analysis reveal that capital employed efficiency (CEE) and human capital efficiency (HCE) are associated with all three types of risk measured. The disaggregated ownership results indicate that only HCE is related to risks in state-owned commercial banks, whereas both HCE and CEE are linked to risks in private commercial banks. The analysis findings also suggest that the relationship between CEE and risk is moderated by income diversification, highlighting the importance of diverse management strategies for more effective risk management.
By focusing on improving human capital, integrating risk management into their core strategies and leveraging technology, Vietnamese banks can effectively mitigate risks and enhance their financial stability.
This paper is the first to examine the correlations between IC and banking risks in Vietnam. This study divided the ownership structure of Vietnamese banks into public and private banks. It also examined the moderating effect of income diversification on IC and bank risks in Vietnam.
