PDF Get rights and content
Articles | 2022-02-28

Value Added Intellectual Coefficient on Banks Performance in Indonesia

Salmiyah Thaha, Syarifuddin Sulaiman
Quantitative Economics and Management Studies, Vol. 3 No. 1 (2022), pp. 58-64 https://doi.org/10.35877/454RI.qems854 Published: 2022-02-28
Get Permissions

Abstract

Banks in Indonesia, both state-owned and private, have realized the importance of intellectual capital as a substantial part in achieving sustainable bank business growth. The population of this research is banking in Indonesia which consistently publish its financial position on an annual basis. Determination of the sample is carried out with a purposive approach, the sample of this research is banks that are listed on the Indonesia Stock Exchange and publish annual financial statements for the period 2018 - 2021. The analysis technique in this study uses simple linear regression analysis. The results show that each model from 2018-2021 shows a low value. The implication of this research is that the better the VAIC value, the more efficient the value creation of all resources will be.

Keywords

bankintellectual capitalperformance

References (10)

  1. Adesina, K. S. (2019). Bank technical, allocative and cost efficiencies in Africa: The influence of intellectual capital. The North American Journal of Economics and Finance, 48, 419–433. https://doi.org/https://doi.org/10.1016/j.najef.2019.03.009
  2. Adesina, K. S. (2021). How diversification affects bank performance: The role of human capital. Economic Modelling, 94, 303–319. https://doi.org/https://doi.org/10.1016/j.econmod.2020.10.016
  3. Al-Musali, M. A. K., & Ismail, K. N. I. K. (2014). Intellectual Capital and its Effect on Financial Performance of Banks: Evidence from Saudi Arabia. Procedia - Social and Behavioral Sciences, 164, 201–207. https://doi.org/https://doi.org/10.1016/j.sbspro.2014.11.068
  4. Al-Omoush, K. S., Palacios-Marqués, D., & Ulrich, K. (2022). The impact of intellectual capital on supply chain agility and collaborative knowledge creation in responding to unprecedented pandemic crises. Technological Forecasting and Social Change, 178, 121603. https://doi.org/https://doi.org/10.1016/j.techfore.2022.121603
  5. Meles, A., Porzio, C., Sampagnaro, G., & Verdoliva, V. (2016). The impact of the intellectual capital efficiency on commercial banks performance: Evidence from the US. Journal of Multinational Financial Management, 36, 64–74. https://doi.org/https://doi.org/10.1016/j.mulfin.2016.04.003
  6. Olarewaju, O. M., & Msomi, T. S. (2021). Intellectual capital and financial performance of South African development community’s general insurance companies. Heliyon, 7(4), e06712. https://doi.org/https://doi.org/10.1016/j.heliyon.2021.e06712
  7. Oppong, G. K., & Pattanayak, J. K. (2019). Does investing in intellectual capital improve productivity? Panel evidence from commercial banks in India. Borsa Istanbul Review, 19(3), 219–227. https://doi.org/https://doi.org/10.1016/j.bir.2019.03.001
  8. 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/https://doi.org/10.1016/j.bir.2016.03.001
  9. Ur Rehman, A., Aslam, E., & Iqbal, A. (2022). Intellectual capital efficiency and bank performance: Evidence from islamic banks. Borsa Istanbul Review, 22(1), 113–121. https://doi.org/https://doi.org/10.1016/j.bir.2021.02.004
  10. Yıldız, S., Meydan, C., & Güner, M. (2014). Measurement of Intellectual Capital Components through Activity Reports of Companies. Procedia - Social and Behavioral Sciences, 109, 614–621. https://doi.org/https://doi.org/10.1016/j.sbspro.2013.12.516

How to Cite

Thaha, S., & Sulaiman, S. (2022). Value Added Intellectual Coefficient on Banks Performance in Indonesia. Quantitative Economics and Management Studies, 3(1), 58–64. https://doi.org/10.35877/454RI.qems854