Determinants of Firm Performance: Evidence from Islamic Banks in Asia
Keywords:
Brand Value; Firm Performance; Firm Size; Intellectual Capital; Islamic BankingAbstract
This study examines the effects of intellectual capital, firm size, and brand value on firm performance, as well as the mediating role of brand value in the intellectual capital–performance relationship and the moderating role of firm size in the brand value–performance relationship. The analysis uses 120 firm-year observations from 30 Islamic banks in Asia during 2021–2024. Firm performance is proxied by Tobin’s Q, intellectual capital is measured using the Value Added Intellectual Coefficient (VAIC), brand value is estimated using the Hirose method, and firm size is measured by the natural logarithm of total assets. Panel-data regression and the Sobel test are employed. The results show that intellectual capital has a negative but insignificant effect on firm performance, while brand value has a positive but insignificant effect. Firm size has a significant negative direct effect on firm performance. Intellectual capital significantly increases brand value; however, brand value does not mediate the effect of intellectual capital on firm performance because the brand value–performance path is statistically insignificant. The interaction between brand value and firm size is positive and significant, indicating that larger Islamic banks are more capable of converting brand strength into market value. These findings demonstrate that organizational scale does not automatically improve performance, but it enhances the economic usefulness of brand value. The study contributes by integrating intellectual capital, brand valuation, and organizational scale within an Islamic banking setting.
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