Intellectual capital on financial performance in sharia banks in Indonesia

Ratih Rizkyanti; Isnurhadi Isnurhadi; Isni Andriana; Marlina Widiyanti

doi:10.21744/irjmis.v7n5.977

Authors

Ratih Rizkyanti
ratihrizkiyanti@gmail.com
Master student of management, Faculty of Economics, Sriwijaya University, Indonesia
Isnurhadi Isnurhadi Lecturer in Master of Management, Faculty of Economics, Sriwijaya University, Indonesia
Isni Andriana Lecturer in Master of Management, Faculty of Economics, Sriwijaya University, Indonesia
Marlina Widiyanti Lecturer in Master of Management, Faculty of Economics, Sriwijaya University, Indonesia

Keywords:

banking, commercial, companies, financial performance, intellectual capital

Abstract

This research was conducted to determine the effect of intellectual capital (VACA,VAHU, STVA) on the financial performance of Islamic banks in Indonesia. The population in this study were all 14 Islamic commercial banks in Indonesia. The sample used in this study met the criteria of 12 Islamic commercial banks using a purposive sampling technique. The data collection method uses secondary data in the financial statements for the period 2014-2019. The results of the multiple linear regression analysis show that value-added capital employees (VACA) have a positive and significant effect on the financial performance of Islamic banks in Indonesia for the period 2014-2019. Value-added human capital (VAHU) has a negative and significant effect on financial performance in Islamic banks in Indonesia, Indonesia for the period 2014-2019. Structural capital value-added (STVA) has a positive and significant effect on financial performance at Islamic banks in Indonesia for the period 2014-2019. Intellectual capital in banking companies can be used as a tool to increase company value so that it can continue to compete and can develop IC as a tool to increase company value so that it can continue to compete and become better.

Downloads

Download data is not yet available.

References

Abdullah, D. F., & Sofian, S. (2012). The relationship between intellectual capital and corporate performance. Procedia-Social and Behavioral Sciences, 40, 537-541. https://doi.org/10.1016/j.sbspro.2012.03.227

Albertini, M., Mantovani, D., & Gasperoni, G. (2019). Intergenerational relations among immigrants in Europe: the role of ethnic differences, migration and acculturation. https://doi.org/10.1080/1369183X.2018.1485202

Barney, J. B. (2001). Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. Journal of management, 27(6), 643-650. https://doi.org/10.1177%2F014920630102700602

Baroroh, N. (2013). Analisis pengaruh modal intelektual terhadap kinerja keuangan perusahaan manufaktur di Indonesia. Jurnal Dinamika Akuntansi, 5(2).

Chwalowski, M. (1997). Intellectual capital matters!. The Electricity Journal, 10(10), 88-93. https://doi.org/10.1016/S1040-6190(97)80323-5

Deegan, C. (2004, March). Environmental disclosures and share prices—a discussion about efforts to study this relationship. In Accounting Forum (Vol. 28, No. 1, pp. 87-97). Taylor & Francis. https://doi.org/10.1016/j.accfor.2004.04.007

Fadaei, M., Taleghani, M., & Noghlebari, E. S. (2013). The effect of intellectual capital on organization’s financial performance. Interdisciplinary Journal of Contemporary Research in Business, 5(6), 275-287.

Forte, W., Matonti, G., & Nicolò, G. (2019). The impact of intellectual capital on firms financial performance and market value: Empirical evidence from Italian listed firms. African Journal of Business Management, 13(5), 147-159.

Harvey, M. G., & Lusch, R. F. (1999). Balancing the intellectual capital books: intangible liabilities. European management journal, 17(1), 85-92. https://doi.org/10.1016/S0263-2373(98)00065-6

Isanzu, J. N. (2015). Impact of intellectual capital on financial performance of banks in Tanzania. Journal of International Business Research and Marketing, 1(1), 16-23.

Kamath, G. B. (2015). Impact of intellectual capital on financial performance and market valuation of firms in India. International Letters of Social and Humanistic Sciences, 48, 107-122.

Madyan, M. (2019). Intellectual Capital, Financial Performance, and Value of Company. Journal of Advanced Research in Dynamical and Control System, 11, 1276-1284.

Muhamad, D., Okubo, S., Harashina, K., Gunawan, B., & Takeuchi, K. (2014). Living close to forests enhances people׳ s perception of ecosystem services in a forest–agricultural landscape of West Java, Indonesia. Ecosystem Services, 8, 197-206. https://doi.org/10.1016/j.ecoser.2014.04.003

Onumah, J. M., & Duho, K. C. T. (2019). Intellectual capital: its impact on financial performance and financial stability of Ghanaian banks. Athens Journal of Business and Economics, 5(3), 243-268.

Ousama, A. A., & Fatima, A. H. (2015). Intellectual capital and financial performance of Islamic banks. International Journal of Learning and Intellectual Capital, 12(1), 1-15. https://doi.org/10.1504/IJLIC.2015.067822

Ozkan, N., Cakan, S., & Kayacan, M. (2017). Intellectual capital and financial performance: A study of the Turkish Banking Sector. Borsa Istanbul Review, 17(3), 190-198. https://doi.org/10.1016/j.bir.2016.03.001

Pulic, A. (1998, January). Measuring the performance of intellectual potential in knowledge economy. In 2nd McMaster Word Congress on Measuring and Managing Intellectual Capital by the Austrian Team for Intellectual Potential (pp. 1-20).

Putri, A. S. (2019). The Effect of the Science Web Module Integrated on Batik's Local Potential towards Students' Critical Thinking and Problem Solving (Thinking Skill). Journal of Science Learning, 2(3), 92-96.

Smriti, N., & Das, N. (2018). The impact of intellectual capital on firm performance: a study of Indian firms listed in COSPI. Journal of Intellectual Capital. https://doi.org/10.1108/JIC-11-2017-0156

Stewart, G. (1997). Supply‐chain operations reference model (SCOR): the first cross‐industry framework for integrated supply‐chain management. Logistics information management. https://doi.org/10.1108/09576059710815716

Ulum, I. (2013). Model pengukuran kinerja intellectual capital dengan iB-VAIC di perbankan syariah. Inferensi: Jurnal Penelitian Sosial Keagamaan, 7(1), 185-206.

Xu, J., & Wang, B. (2018). Intellectual capital, financial performance and companies’ sustainable growth: Evidence from the Korean manufacturing industry. Sustainability, 10(12), 4651.

Zarei, A., Shamszade, B., & Zarei, Z. (2014). The effect of Intellectual capital on financial performance of banks listed in Tehran Stock Exchange. Journal of Money and Economy, 9(4), 49-73.