scholarly journals Islamic Banking - Value Added Intellectual Coeficient (IB-VAIC) as an Intellectual Capital Proxy Indonesian Islamic Banking

2015 ◽  
Vol 2 (2) ◽  
pp. 127
Author(s):  
Ema Pratiwi ◽  
Rahmad Kadry
Keyword(s):  
Intellectual Capital ◽  
Balance Sheet ◽  
Main Idea ◽  
Value Added ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Tangible Assets ◽  
Top Performers ◽  
Overall Performance

The main idea of this research is to make the concept of intellectual capital as the most valuable intangible assets for the company. Basically, tangible assets which is owned by the company is also controlled by humans. This study offers Islamic Banking-Value Added Intellectual Coefficient (IB-VAICTM) modified the model pulic by Ulum (2013) as a performance measurement of intellectual capital of Islamic banking in Indonesia. This study also makes Islamic banks rank in term of Best Performance Index (BPI) which is measured using IB-VAIC™. The data used are annual reports, particularly financial performance and balance sheet, obtained either through the official website of each bank as well as from BI website. This study finds that during the study period (2010-2014), the overall performance of Islamic banking in Indonesia in the category of "good performers" with a score of VAIC 2.57. The results also indicates that individual banks that including into the category of "top performers" are three (3) banks, "good performers" 4 (four) Bank and "common performers" 4 (four) Bank. The limitations of this study is that the data used only 11 (eleven) Commercial Bank (BUS) in Indonesia, while the overall number of banks per January 2015 was 197.

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 Intellectual Capital and its Impact on Financial Performance: A Study of Oil and Gas Sector of Pakistan

2014 ◽  
Vol 43 ◽  
pp. 125-140 ◽  
Author(s):  
Muhammad Arslan ◽  
Rashid Zaman
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Significant Relationship ◽  
Oil And Gas ◽  
Random Effect ◽  
Random Effect Model ◽  
Value Added ◽  
Annual Reports ◽  
Tangible Assets ◽  
Oil And Gas Sector

The study examines the Intellectual Capital (IC) performance of oil and gas sector of Pakistan over the period of 2007 to 2011 and its impact on corporate financial returns. The study uses value added intellectual coefficient (VAICitTM) to measure IC performance and its various components of VAICitTM like (HCEit, SCEit and CEEit) and its impact on financial performance (ROEit, ROIit and EPSit). Micro panel data of oil and gas sector registered in KSE-100 index is collected from their consolidated annual reports over the period of 2007 to 2011. The IC performance is measured by Ante Pulic Model (VAICitTM) and its effect on corporate returns (ROEit, ROIit and EPSit) is tested by Random Effect Model estimation. Hausman test suggests that study accepts null hypothesis (Chi2. Prop > 0.05) where for ui is uncorrelated with regressor means that random effect is preferred versus alternative fixed effect in all the proposed research models. The study reveals that VA is considered an important component for measuring the VAICitTM performance and it has positive and significant relationship with firm’s profitability (EPSit) and HCEit and SCEit have positive and significant relationship with firm’s financial performance (ROEit and ROIit) respectively. So, this study explores that Intellectual Capital Efficiency (ICE) has relatively larger contribution for measuring the VAICitTM performance where HCEit and SCEit execute substantive role to accelerate the financial performance of oil and gas sector of Pakistan as compare to tangible assets.

scholarly journals Empirical Linkage of Intellectual Capital and Performance of Islamic Banks

2019 ◽  
Vol 8 (5C) ◽  
pp. 677-684
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Positive Relationship ◽  
Value Added ◽  
Annual Reports ◽  
Bank Performance ◽  
Islamic Banks ◽  
Significant Positive Relationship ◽  
Banking Institutions ◽  
Capital Efficiency

With the eminence of the era of knowledge-based economies, the concept of intellectual capital (IC) is of vital importance for organisations to survive in these vigorous environments. As one of the knowledge intensive sectors, there is no exception to banking institutions in enhancing their intellectual capital efficiency to the forefront especially for Islamic banks (IBs) that have to compete with the firmlyestablished conventional banks. Accordingly, this study intends to measure the relationship between intellectual capital efficiency and banks’ performance. In total, 59 Islamic banks are selected and their audited annual reports are compiled from the banks’ websites respectively from year 2006-2017. Value-added intellectual coefficient (VAIC) are applied in measuring IC efficiency. The findings provide empirical evidences of positive relationship between IC efficiency and banks performance, nonetheless, when decomposes into human capital efficiency (HCE), structural capital efficiency (SCE) and capital employed efficiency (CEE), only human capital efficiency shows significant positive relationship with performance of the banks while the other two components show significant negative linkage with bank performance. Furthermore, due to criticisms towards VAIC method, this study using modified value-added intellectual capital coefficient (MVAIC) and found that MVAIC has significant positive relationship with bank performance while relational capital as additional variable in MVAIC regression model has no significant effect with bank performance. This study provides better insights on the importance of utilisation of IC by banking institutions particularly for Islamic banks.

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. .

scholarly journals Analisis Perbandingan Kinerja Keuangan PT Bank Syariah Mandiri Dengan Menggunakan Pendekatan Laba Rugi Dan Nilai Tambah Periode Tahun 2016-2020

2021 ◽  
Vol 9 (2) ◽  
Author(s):  
Nuri Fitriani ◽  
Ratih Puspitasari
Keyword(s):  
Financial Performance ◽  
Balance Sheet ◽  
Value Added ◽  
Financial Statements ◽  
Added Value ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Income Statement

The analysis of the financial performance of Islamic banks so far has been carried out only based on the balance sheet and income statements, not using the value added report as recommended by Baydoun and Willet (2000), an expert in Islamic accounting. The purpose of this research is to review the financial performance of Islamic banking by comparing the results of financial performance using the profit and loss approach and those using added value. To obtain accurate evidence regarding differences in the financial performance of Islamic banking when calculated using the profit and loss approach and added value, it is seen from the ratio of ROA, ROE, LBAP, NPM and BOPO. This study took a sample on the financial statements of PT. Bank Syariah Mandiri 2016 to 2020.     Keywords: Financial Performance, Income Statement, Value Added Report

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.

Pengaruh Islamic Social Reporting terhadap Profitabilitas (Return on Asset dan Return on Equity) Pada Bank Umum Syariah Di Indonesia

2019 ◽  
Vol 4 (2) ◽  
pp. 1
Author(s):  
Ana Santika
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Sampling Technique ◽  
Social Reporting ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Collection Method ◽  
Return On Equity ◽  
Social Environmental

The act of accuracy and prudence is very important in the company because is the factor that determines the sustainability of companies such as banking. This study aims to analyze the effect of Shariah Complaints towards the profitability of Islamic Banks in Indonesia. This type of research is quantitative. The data collection method used is the documentation method and library study method. The sampling technique uses purposive sampling with the criteria of Islamic commercial banks that publish annual-reports from 2013 to 2017 from 13 Islamic commercial banks (BUS) in Indonesia. The results of this study show that the Funding and Investment, Products and Services, Employees, Community or Social, Environmental, Corporate Governance simultaneously does not have influence significantly the ROE variable, but it does significantly influence to ROA. Means that the wider the Islamic social reporting of Islamic banking, the greater the profitability of Islamic banking. In addition, high profitability will encourage managers to provide more detailed information, because they want to convince investors of company profits and its compensation for management.

scholarly journals Intellectual Capital of a Trading Company: Comprehensive Analysis Based on Reporting

2020 ◽  
Vol 12 (17) ◽  
pp. 7095
Author(s):  
Oksana Pirogova ◽  
Olga Voronova ◽  
Tatyana Khnykina ◽  
Vladimir Plotnikov
Keyword(s):  
Content Analysis ◽  
Intellectual Capital ◽  
Value Added ◽  
Management Policy ◽  
Annual Reports ◽  
Trading Company ◽  
Significant Relationships ◽  
The Subject ◽  
The Russian Federation

The study is devoted to the analysis of the efficiency of use and the effectiveness of disclosing the intellectual capital (IC) of a trading company operating in the market of the Russian Federation. The subject of the research is an assessment of the quality of disclosure of information about the IC company involved in the creation of financial results of activities and the growth of the company’s value. The study examines the assessment of IC and the search for links between the involvement of IC in the formation of the financial result of a trading company and the degree of its reflection in the company’s annual reports. Methods of using intellectual value-added coefficients (VAIC) such as the trademark logo (written as ™), Calculated Intangible Value (CIV) and content analysis of the company’s annual reports are used to assess the IC and its elements. The influence of IC and its components, on the financial results of a trading company are also investigated and calculated using various methods. It is shown that there are no statistically significant relationships between the assessments of IC and its elements obtained using financial ratios, and those obtained using content analysis. This indicates that the opinions and assessments of the heads of a trading company regarding IC are formed regardless of the size of IC involved in the formation of economic results and testifies to the absence of an effective investment management policy in the studied company. Some of the results obtained confirm the trends in IC structures previously observed for companies in other industries. The results also indicate that the existing system for preparing annual reports does not sufficiently consider the size, dynamics and efficiency of using the intangible assets of a trading company. The results of this study are likely to be useful to management and academics.

scholarly journals ISLAMIC BANKING PERFORMANCE MEASUREMENT: A CONCEPTUAL REVIEW OF TWO DECADES

2021 ◽  
Vol 5 (1) ◽  
pp. 16-33
Author(s):  
Elyanti Rosmanidar ◽  
Abu Azam Al Hadi ◽  
Muhamad Ahsan
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Social Performance ◽  
Meta Analysis ◽  
Jel Classification ◽  
Research Trend ◽  
Islamic Banking ◽  
Islamic Banks ◽  
The Past ◽  
Conventional Banks

This article aims to provide an overview of the development of research on the measurement of Islamic banking performance over the past 20 years from 89 selected papers with Scopus-indexed journals ranked Q4 to Q1 or accredited with Sinta 2 to Sinta 1. This study used a qual-quantitative meta-analysis approach using the Mendeley citation application. The distribution of the topic and the depth of research in paper samples based on keywords in publications were analyzed using the VOSviewer application. The results of the analysis showed that the research trend of Islamic banking performance in reputable journals is increasing in recent years. Most of the studies performed in the last two decades have focused on the practice and corporate governance of Islamic banks and comparisons between Islamic and conventional banks based on financial performance ratios and aspect of maqasid al-Shariah; Only a few studies that discuss efficiency, social performance on Islamic banks, regulation, intellectual capital and stability of the financial performance of Islamic banks were found. The further discussion is an empirical exposure without theoretical exploration or analysis which is supposed to become the direction of banking research in the future.  JEL Classification Codes: G21, L25, P17, P47.

scholarly journals The Moderating Role of Intellectual Capital between Relationship of Bank Specific Factors and Credit Risk of Islamic Banks

2019 ◽  
Vol 2 (4) ◽  
pp. 79-87
Author(s):  
Muhammad Nawaz ◽  
Alias Mat Nor ◽  
Habibah Tolos
Keyword(s):  
Credit Risk ◽  
Intellectual Capital ◽  
Management Policy ◽  
Annual Reports ◽  
Future Research ◽  
Islamic Banks ◽  
Relationship Of ◽  
The Relationship ◽  
Moderating Role

Purpose-The Objective of this study is to investigate the moderating role of Intellectual Capital between the relationship of Bank internal factor and Credit Risk in Islamic banks of Pakistan. Design/Methodology-Panel data are obtained from annual reports of 4 Islamic banks of Pakistan from the period 2006 to 2017. These are analyzed using hierarchical regression techniques, via Eviews 9 software. Findings-The results showed that intellectual capital significantly moderates the relationship of bank internal variable and credit risk in Islamic banks in Pakistan. Practical Implications-The study found that Intellectual Capital is a very important driver for credit risk. The investment in Intellectual Capital may lower the credit risk which will further help in the growth and sustainability of the bank and hence the growth in the economy. The results of the study will be useful for bank management, policy maker, and regulator and academia for future research.

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