Citation:Malsha, K. P. P. H. G. N. & Kodithuwakku, S. (2025). The Impact of Intellectual Capital on Firm Value and The Mediating Effect of Financial Performance of Banking Sector in Sri Lanka. . Proceedings of the 14th International Conference on Management and Economics (ICME), Faculty of Management and Finance, University of Ruhuna, Matara, Sri Lanka, 321-340.
Date:2025-07-31
Abstract:
This study attempts to identify the effect of Intellectual Capital on firm value
with the mediating effect of Financial performance, with special reference to
the banking sector in Sri Lanka. Primary data was gathered by using a wellstructured
questionnaire to achieve this goal. Managers and executives at
banks listed on the Colombo Stock Exchange were the source of 306 responses.
The study adopted the mediation analysis from the methodology proposed by
Baron & Kenny in 1986. Based on the primary data analysis, the findings show
a strong positive impact of human and customer capital on the financial
performance and firm value of listed banks. Further findings suggested the
complementary partial mediation role of financial performance in the
association between intellectual capital and the firm value of banks. The
present investigation will be crucial in determining the empirical knowledge
regarding the impact of intellectual capital on the firm value mediated by the
financial performance of listed banks in the Colombo Stock Exchange.
