Do ex-bureaucrats on boards improve efficiency in intellectual capital? Evidence from an emerging country
Borsa Istanbul Review, vol.23, no.5, pp.1111-1131, 2023 (SSCI, Scopus)
- Publication Type: Article / Article
- Volume: 23 Issue: 5
- Publication Date: 2023
- Doi Number: 10.1016/j.bir.2023.06.003
- Journal Name: Borsa Istanbul Review
- Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, EconLit, Directory of Open Access Journals
- Page Numbers: pp.1111-1131
- Keywords: Banks, Boards, Ex-bureaucrats, ICE
- Istanbul University-Cerrahpasa Affiliated: Yes
Abstract
Relying on the resource dependence theory, this study investigates the effect on intellectual capital efficiency and its components of having board members who are former bureaucrats, using a sample of banks in Turkiye. The study uses a sample of 344 fırm-year observations of banks in Turkiye between 2005 and 2018 to investigate the relationship between ex-bureaucrat board members and intellectual capital efficiency. In addition to ordinary least squares (OLS), the curret study employs instrumental variables with a two-stage least squares model to mitigate potential endogeneity concerns. Our findings show that ex-bureaucrat board members have a significantly positive association with intellectual capital efficiency at banks in Turkiye.