scholarly journals The Influence of Intellectual Capital with Sub Components to Financial Performance: Empirical Study of Islamic Banking in Indonesia

2020 ◽  
Vol 5 (8) ◽  
pp. 877-882
Author(s):  
Toufan Aldian Syah ◽  
Akhmad Fauzan
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Value Added ◽  
Financial Statement ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Intangible Resources ◽  
Islamic Bank ◽  
Capital Efficiency ◽  
The Impact

- This paper aims to empirically examine the effect of intangible resources, namely intellectual capital (IC) on the financial performance of Islamic banking in Indonesia for the period 2013-2019. The data needed to calculate the different IC constituents comes from the financial statement data of each Islamic bank, which is the research sample, namely the Islamic bank, which is a foreign exchange bank. Value Added Intellectual Coefficient (VAIC) The methodology designed by Pulic is used to determine the impact of IC on Islamic banking's financial performance. The results show a significant positive relationship between the Sub-component Value Added Intellectual Coefficient (VAIC), namely Human Capital Efficiency (HCE), Structure Capital Efficiency (SCE), and Capital Employed Efficiency (CEE) which have a significant influence on the financial performance of Islamic banking proxied by ROA. Overall, the results show that HCE, SCE, and CEE strongly influence Islamic banks' ability to earn profits. The main limitation of this study lies in its measurement method, the VAIC methodology, which has been criticized by some researchers as not measuring IC. These findings can be useful input for Islamic bank management to manage and invest their resources in the Intellectual Capital (IC) in their institution. The main contribution of this paper is to identify the influence of the subcomponent of intellectual capital (IC) on the financial performance of Islamic banks, which was previously rare in Indonesia.

scholarly journals The association between intellectual capital and financial performance in the Islamic banking industry

2019 ◽  
Vol 13 (1) ◽  
pp. 75-93 ◽  
Author(s):  
A.A. Ousama ◽  
Helmi Hammami ◽  
Mustafa Abdulkarim
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Positive Impact ◽  
Value Added ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Gcc Countries ◽  
The Impact

Purpose The purpose of this study is to empirically investigate the impact of intellectual capital (IC) on the financial performance of Islamic banks operating in the Gulf Cooperation Council (GCC) countries. Design/methodology/approach The study measures IC by the value added intellectual coefficient model. A regression analysis was used to assess the impact of IC on financial performance. The research sample consisted of Islamic banks operating in the GCC countries during the years 2011, 2012 and 2013. Data originated from the annual reports of Islamic banks. Findings The results support the thesis that IC has a positive impact on the financial performance of Islamic banks. Even though the average IC is lower than that reported in other studies, the positive effect on financial performance is obvious. The findings also show that human capital (HC) is higher than capital employed (CE) and structural capital (SC). The study reveals that SC has an insignificant impact on the financial performance of the Islamic banks compared to CE and HC. Practical implications The findings provide empirical evidence that IC affects the Islamic banks’ financial performance. It helps Islamic banks in the GCC countries to understand how to use their IC efficiently, especially SC as it is yet to be used efficiently. Also, the findings benefit the relevant authorities (e.g. legislators and central banks) who could use them to emphasise strategic policy reforms whenever required. Originality/value The current research adds to the empirical studies in the GCC countries as it views the region as a collective as opposed to individual countries. It also extends the IC and performance measurement literature of Islamic banks in the GCC countries. Moreover, the current study enriches the limited literature on IC in the context of Islamic banking.

scholarly journals DETERMINAN KINERJA KEUANGAN PERBANKAN SYARIAH PERIODE 2014-2018

2020 ◽  
Vol 2 (1) ◽  
pp. 21-36
Author(s):  
Kinanti Pradita Pangesti ◽  
Himawan Arif Sutanto
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Financial Services ◽  
Performance Index ◽  
Linear Regression Analysis ◽  
Value Added ◽  
Social Reporting ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Islamic Bank

The increasing trend in the halal industry is one of the growth factors of sharia banking, but the increase in sharia banking growth is also accompanied by an increase in financing issued by sharia banks that can affect the financial performance of sharia banks. The high risk of financing and the weak fulfillment of the quality of Islamic bank human resources resulted in the performance of Islamic banks always below conventional banks. This study aims to determine the effect of intellectual capital, non-performance financing, Islamic social reporting and Islamic performance index on the financial performance of Islamic banking. The data was taken purposively from Islamic banking companies registered with the Financial Services Authority (OJK) for the 2014-2018 period. Multiple linear regression analysis has been used to analyze the data in this study. The results showed that Non-Permofance Financing (NPF) had a negative effect on the financial performance of Islamic Banks. Whereas Intellectual Capital as measured by Value Added Intellectual Coefficient (VAIC), Islamic Social Reporting, and Islamicity Performance Index has no effect on Islamic bank finance. .

Intellectual capital efficiency and market-based financial performance: Evidence from listed conglomerate companies

2021 ◽  
Vol 2 (2) ◽  
pp. 31-42
Author(s):  
Eniola Ayisat Sulaiman ◽  
Abubakar Sadiq Kasum ◽  
Wasiu Ajani Musa
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Fixed Effects ◽  
Value Added ◽  
Secondary Data ◽  
Lagrangian Multiplier ◽  
Fixed Effects Model ◽  
Analysis Technique ◽  
Capital Efficiency ◽  
The Impact

Having observed the rate at which dissimilarity occurs between market and book value, and management ignorance concerning the impact intellectual capital disclosure has on companies’ values spurred the interest to probe the association between the efficiency of value-added intellectual coefficient (VAIC) and market-based financial performance of listed Nigerian conglomerate companies. To accomplish the purpose of this study, secondary data were employed and extracted from annual audited reports of listed conglomerate companies in Nigeria from the period of 2010–2018. The data obtained were subjected to static panel data regression analysis technique. The random-effects model was adopted because the empirical result from Breusch and Pagan Lagrangian multiplier (BP-LM) and Hausman tests chose it over the fixed-effects model to produce better results. This study revealed that the value-added efficiency of capital employed (VACA), value-added efficiency of human capital (VAHU), and value-added efficiency of structural capital (STVA) are the drivers of intellectual capital in the conglomerate sector. This study concluded that elements of intellectual capital have a strong power on market-based financial performance. This study recommends that information on intellectual capital components should be reported in ways they deem fit by developing a model of intellectual capital disclosure that complies with the International Accounting Standard Board (IASB)

scholarly journals PENGARUH INTELLECTUAL CAPITAL STRUKTUR MODAL DAN TINGKAT INFLASI TERHADAP KINERJA KEUANGAN PERBANKAN SYARIAH DI INDONESIA

Media Ekonomi ◽  
2017 ◽  
Vol 25 (1) ◽  
pp. 25
Author(s):  
Putri Indriani ◽  
Nirdukita Ratnawati
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Value Added ◽  
Regression Method ◽  
Capital Adequacy ◽  
Islamic Banking ◽  
Islamic Bank ◽  
Capital Adequacy Ratio ◽  
The Relationship

<em>The purpose of this study was to analyze the relationship and the influence of Value Added Intellectual Capital (VAIC) and Structure of capital as measured by Capital Adequacy Ratio (CAR) and The Rate of Inflation on financial performance Islamic Banking. <em>The method used in this study is the regression method panel. The data used in this study were taken from the nine Islamic Bank in Indonesia Indonesian period 2010-2015.</em> <em>Results of the study showed inflasi have positively to financial performance and CAR have negatively to financial performance. If seen from the results an VAIC on financial performance have the positively significant results at Islamic bank in Indonesia .</em><br /></em>

The Analysis of Intellectual Capital Performance of Islamic Bank in Indonesia

2014 ◽  
Vol 2 (4) ◽  
pp. 53-60
Author(s):  
Radhiyatul Fitriyeni ◽  
Yurniwati Yurniwati
Keyword(s):  
Correlation Analysis ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Sampling Method ◽  
Positive Relationship ◽  
Value Added ◽  
Company Performance ◽  
Islamic Banks ◽  
Capital Efficiency ◽  
The Relationship

Objective - The purpose of this paper was to assess the influence of Value Added Intellectual Capital (VAIC) towards company performances such as: profitability and productivity of Islamic banks of Indonesia measured by ROA, ROE, ROI and ATO. Methodology/Technique - This research conducted purposive sampling method. Correlation analysis was applied to measure the influence of ICE on company Performance. SPSS 18 was applied for correlation test. VAIC was calculated for measuring intellectual capital efficiency. Findings - VAIC had a positive relationship to company performance such as financial performance and productivity. The highest value of correlation was the relationship between VAIC and ATO. The lowest value of correlation was the relationship between VAIC to ROE. Novelty - This research assessedthe influence of VAIC towards 11 Islamic Banks in Indonesia. Type of Paper - Empirical Keywords: Intellectual capital, VAIC, corporate performance, financial performance, productivity, Indonesia, Islamic Banks.

Intellectual capital efficiency and bank’s performance

2019 ◽  
Vol 31 (4) ◽  
pp. 672-694 ◽  
Author(s):  
Amina Buallay ◽  
Richard Cummings ◽  
Allam Hamdan
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Positive Relationship ◽  
Market Performance ◽  
Value Added ◽  
High Tech ◽  
Islamic Banks ◽  
Content Type ◽  
Conventional Banks ◽  
The Impact

Purpose Intellectual capital (IC) plays a pivotal role in the high-tech and knowledge-based economic sectors. With the emergence of FinTech, which, with respect to the banking sector, is merging high-tech with the k-economy, there is an emerging need to highlight the importance and understand the dynamics of bank IC. With respect to Gulf Cooperation Council (GCC) economies, where FinTech has become de rigueur, banking is bifurcated into Islamic and banking sectors. Through comparative empirical analysis, the purpose of this paper is to examine IC efficiency in Islamic and conventional banks with a view to elucidating the impact of IC, in aggregate and decomposed into its components, on an operational, financial and market performance of Islamic banks juxtaposed with conventional banks. Design/methodology/approach Using data collected from 59 banks for five years (2012-2016) involving 295 observations, an independent variable derived from the modified value added IC (MVAIC) components are regressed against dependent bank performance indicator variables [Return on Assets (ROA), Return on Equity (ROE) and Tobin’s Q (TQ)]. Two types of control variables complete the regression analysis in this study: bank-specific and macroeconomic. Findings The findings elicited from the empirical results demonstrate that there is positive relationship between IC efficiency and financial performance (ROE) and market performance (TQ) in Islamic banks. In conventional banks, however, there is a positive relationship between IC and operational performance (ROE) and financial performance (ROE). Originality/value The model in this paper presents a valuable analytical framework for exploring IC efficiency as a driver of performance in dual-sector banking economies characterized by co-existence of Islamic and conventional financial institutions. In addition, this paper highlights bank management lacunae manifesting in terms of the weak nexus between: IC and asset efficiency (ROA) in Islamic banks and IC and market value (TQ) in conventional banks.

scholarly journals Determinants of financial performance of Islamic banks: an intellectual capital perspective

2017 ◽  
Vol 8 (2) ◽  
pp. 130-142 ◽  
Author(s):  
Tasawar Nawaz ◽  
Roszaini Haniffa
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Positive Relationship ◽  
Value Added ◽  
Annual Reports ◽  
Content Type ◽  
Significant Positive Relationship ◽  
Accounting Performance ◽  
Capital Efficiency ◽  
The Impact

Purpose The purpose of this paper is to empirically examine the effect of intangible resources, i.e. intellectual capital (IC) on financial performance of 64 Islamic financial institutions (IFIs) operating in 18 different countries for the period 2007-2011, while controlling for firm-specific variables, namely, bank size, level of risk, listing status, and firm complexity. Design/methodology/approach The required data to calculate different constituents of IC are derived from Bankscope database. Value Added Intellectual Coefficient (VAIC) methodology devised by Pulic is used to determine the impact of IC on financial performance of IFIs. Findings Results indicate a significant positive relationship between VAIC and accounting performance based on return on assets (ROA). The results further indicate a significant positive relationship between accounting performance and capital employed efficiency (CEE) and human capital efficiency (HCE), but no significant relationship with regards to structural capital efficiency. Overall, the results suggest that value creation capability of IFIs is highly influenced by HCE and CEE. Research limitations/implications The main limitation of the present study lies in its methodological tool, the VAIC methodology, which has been criticized by some researchers as not really measuring IC. Despite the inherent limitation of the VAIC methodology which relies on secondary data published in annual reports, it is still considered by some researchers as one of the best available tool to measure firms’ IC in the absence of access to detailed internal information on IC. Practical implications The findings may serve as a useful input for Islamic bankers in managing their investments in IC within their institutions. Originality/value The main contribution of this paper is to use a previously little-studied area, Islamic banking and finance, to identify the effect of intellectual capital on performance.

scholarly journals PENGARUH INTELLECTUAL CAPITAL TERHADAP KINERJA KEUANGAN PERBANKAN SYARI’AH DI INDONESIA

2017 ◽  
Vol 20 (3) ◽  
pp. 346
Author(s):  
Santi Dwie Lestari ◽  
Hadi Paramu ◽  
Hari Sukarno
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Descriptive Analysis ◽  
Value Added ◽  
Islamic Banking ◽  
Return On Assets ◽  
Operating Income ◽  
Independent Variable ◽  
The Right ◽  
The Impact

The purpose of this study is to test the impact of intellectual capital on corporate financial performance, the impact of intellectual capital a year before on company’s future financial performance on Indonesian islamic banking for the period 2009-2013. The selection of Islamic banking because of progression of sharia principles-based bank in Indonesia is now the middle of rapid progress. Islamic banking in Indonesia requires the right strategy in communicating Islamic banking products and services to the community. The methods used in this research is explanatory research. Variables used in the study consisted of the dependent variable and independent variable. The dependent variable in this study is financial performance as measured by Return on Assets (ROA), operational costs against operating income (BOPO), and Financing to Deposit Ratio (FDR). Independent variables from this research is the intellectual capital that is measured by the Value Added method with Intellectual Capital (VAICTM). The sample was selected using a purposive sampling method and sample as many as 18 members of syari’ah bank. Research data processed with descriptive analysis and analysis of two way ANOVA using SPSS. The results of this research indicate that intellectual capital affect the financial performance of the company, intellectual capital in the previous period to the next period of financial performance.

scholarly journals Intellectual Capital, Technological Intensity and Firm Performance: The Case of Emerging Countries

2021 ◽  
Vol 68 (4) ◽  
pp. 459-479
Author(s):  
Mehtap Öner ◽  
Asli Aybars ◽  
Murat Çinko ◽  
Emin Avci
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Emerging Market ◽  
Value Added ◽  
Emerging Countries ◽  
Corporate Financial Performance ◽  
Positive Contribution ◽  
Capital Efficiency ◽  
Technological Intensity ◽  
The Impact

While neglecting the importance of technological intensity, most of the prior studies documented the positive contribution of intellectual capital (IC) to corporate financial performance. This study aims at analyzing the relation between IC and corporate financial performance addressing the technological intensity in different sectors from 17 emerging countries. The impact of IC, which is measured by Value Added Intellectual Coefficient (VAIC) and its components; Capital Employed Efficiency (CEE), Human Capital Efficiency (HCE), and Structural Capital Efficiency (SCE), on corporate financial performance will be evaluated using panel data analysis for the period between 2009-2019. Accordingly, IC and its components are found to be significant drivers of financial performance being higher for sectors that are more technology intensive. Moreover, human and physical capital are the main components, which boost finance performance for all groups irrespective of technological intensity in the emerging market context.

scholarly journals THE IMPACT OF INTELLECTUAL CAPITAL AND FINANCIAL PERFORMANCE: AN EVIDENCE FROM THE ISLAMIC BANKS IN PAKISTAN

2021 ◽  
Vol 9 (3) ◽  
pp. 1666-1672
Author(s):  
Muhammad Riaz Mahmood ◽  
Muzammil Khurshid ◽  
Hafiza Farhat ◽  
Shagufta Naveed ◽  
Muhammad Irfan Ahmad
Keyword(s):  
Human Capital ◽  
Regression Model ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Original Study ◽  
Islamic Banks ◽  
Return On Assets ◽  
Capital Efficiency ◽  
The Impact

Purpose: The study seeks to look at the impact of intellectual capital on the financial performance of Islamic banks in Pakistan. Methodology: This study employed the regression model by using different Islamic banks. In this scenario, the data were collected from the Islamic banks in Pakistan from 2010 to 2019. The financial performance was measured through return on assets and intellectual capital was measured through human capital efficiency, structured capital efficiency, and capital employed efficiency. Main Findings: The study concluded that human capital influences the return on assets which increases the financial performance of Islamic banks. The rest of the components of intellectual capital negatively influence the performance of Islamic banks. Applications of the Study: This study enables us to understand the importance of IC and helps the management of the Islamic banks to get benefit from it. Novelty/ Originality of this study: This is an original study that has not been published before in any journal. The present study contributes to the existing knowledge of the literature on intellectual capital by throwing the light on the previous studies made regarding the Islamic banks and it is useful for the policymakers.

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