Abstract :In today’s economy, intellectual capital has become a very strong factor in creating com- petitiveness and achieving competitive success for all companies, especially financial insti- tutions where information is heavily used. Competitive success in businesses relies heavily on the strategic management of intellectual capital rather than physical and financial re- sources. The purpose of this study is to examine the relationship between intellectual cap- ital and financial performance. For this purpose, it has benefited from the data of 10 com- mercial banks traded on Borsa Istanbul in 2016. The intellectual capital performance of the banks was measured by the Value Added (VA) and Value Added Intellectual Coefficient (VAICTM) model, and the relationship of intellectual capital performance and performance components with financial performance was investigated by correlation analysis. Empiri- cal results from the study showed that intellectual capital is an important determinant of the financial performance of banks. In this direction, banks must understand the importance of intellectual capital and try to disclosure more information about their intangible assets. Moreover, the results of the study revealed the fact that both the intellectual capital and the improvement of intellectual capital management is very important to increase the market value of banks. Therefore, intellectual capital should be given very strong importance by the banks registered in Borsa Istanbul to provide their long-term sustainable competitive advantage and to increase their profitability. Keywords : Intellectual Capital, Value Added, Value Added Intellectual Coefficient, Firm
