DETERMINANTS OF INTELLECTUAL EFFICIENCY VALUE: EMPIRICAL EVIDENCE OF SELECTED INDIAN BANKS

Abstract

In today’s world the knowledge-based economy has evolved, the method for creating firm value has transferred from traditional physical assets to intangible knowledge. The valuation of intangible assets has become a widespread topic of interest in the future of the economy. This study takes advantage of feature selection, an important data-pre processing step in data mining, to identify important and representative factors affecting intellectual efficiency of Indian banking sector. This study employed Data envelopment analysis technique to calculate the intellectual efficiency score of the bank and it is used as a dependent variable for further analysis. In stepwise regression 20 variables are considered and finally four variables explained the variations: Return on asset (ROA), Human resource intensity, capital intensity and interest income to working funds.