INTELLECTUAL CAPITAL AND BANKS PERFORMANCE: THE EMPIRICAL EVIDENCES FROM INDONESIAN ISLAMIC AND CONVENTIONAL BANKS

Year 2019, , 149 - 157, 30.09.2019

Saiful Saiful , Sintia Asfarawenti

https://doi.org/10.17261/Pressacademia.2019.1116

Abstract

Purpose- This study examines the influence of intellectual capital (IC) on bank performance measured by ROA, ROE and NIM.

Methodology- This study explores purposive sampling methods. Finannly, 10 Islamic banks and 30 Conventional banks were selected as a sample of this study for the period 2012-2016.

Findings- This study found that IC positively effect on bank performance that measured by ROA, ROE and NIM. In the context of IC dimensions, this study shows that HCE and CEE positively effect on bank performance that measured by ROA, ROE and NIM. Meanwhile, SCE positively affect to bank performance that measured by ROA only. The results of the study are sensitive to samples. For Islamic banks sub sample, this study found that IC positively effect on ROA, but it does not affect to ROE and NIM. HCE positively effect on ROA, but HCE negatively influence on ROE and HCE has no effect on the NIM. SCE negatively effect on ROA and ROE, but SCE has no effect on NIM. CEE Capital has a positive effect on ROA and NIM, but CEE has a negative effect on ROE. For conventional banks, IC has a positive effect on ROA and ROE, but IC does not affect the NIM. HCE and CEE have a positive effect on ROA, ROE and NIM. SCE has a positive effect on ROE, but SCE has a negative effect on the ROA and NIM

Conclusion- These findings indicate the optimum intellectual capital will be followed by better bank performance. However, the influencing of IC on bank performance is very susceptible to measurement and the sample.

Keywords

Intellectual capital, human capital, structural capital, customer capital, bank performance

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