scholarly journals Analysis on The Effect of Intellectual Capital on Growth and Financial Performance of Islamic Banking

2018 ◽  
Vol 1 (1) ◽  
Author(s):  
Jetmiko Jetmiko
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Partial Least Square ◽  
Least Square ◽  
Islamic Banks ◽  
Analysis Model ◽  
Gcc Countries ◽  
Partial Least Square Analysis ◽  
Least Square Approach

This research aims to analyze the influence of Intellectual Capital and Financial Performance using Partial Least Square Approach. The sample of this research is 19 Islamic Banks in Indonesia, Malaysia and GCC countries. Partial Least Square analysis model was employed to test the hypotheses. The result of this study shows that intellectual capital disclosure affects the Islamic banks� financial performance in Indonesia and GCC countries but not those in Malaysia. As for the company�s growth, the disclosure of intellectual capital does not have effect on the company�s growth. The influence of the disclosure of intellectual capital on financial performance could mean that the company should give more attention to the quality of intellectual capital.

Modified integrated Islamic CSRD index and financial performance of Malaysian Islamic banks

2020 ◽  
Vol 11 (8) ◽  
pp. 1599-1617
Author(s):  
Fatimah Noor Rashidah Mohd Sofian ◽  
Rusnah Muhamad
Keyword(s):  
Financial Performance ◽  
Stakeholder Theory ◽  
Partial Least Square ◽  
Least Square ◽  
Islamic Banks ◽  
Content Type ◽  
Partial Least Square Analysis ◽  
The Relationship ◽  
Purposive Sample ◽  
Practical Implications

Purpose The purpose of this paper is to examine the relationship between the modified integrated Islamic CSRD index (MIICSRDi) and financial performance of Malaysian Islamic banks as perceived by the stakeholders. Design/methodology/approach This paper used survey questionnaire with a purposive sample of 343 stakeholders of Malaysian Islamic banks. A theoretical framework was developed and tested by using partial least square analysis. Findings The findings reveal that there is a significant positive relationship between the MIICSRDi and financial performance as perceived by the stakeholders. Research limitations/implications There is a lack of empirical research proposing an Islamic CSRD framework that is suitable to be applied within the context of the Malaysian environment. Hence, this paper shows that MIICSRDi in line with the stakeholder theory, Shariah principles and ‘urf principle (customary practice) can be used by Malaysian Islamic banks to increase their performance. Practical implications MIICSRDi can be used as one of the strategies to improve the financial performance of Islamic banks. In fact, it can be instilled in the value-based intermediation introduced by Bank Negara Malaysia for the rebranding of Islamic banks. Originality/value The relationship between perceived MIICSRDi and perceived financial performance is explained in light of the stakeholder theory, Shariah principles (unity, equilibrium, free will, responsibility and tazkiyah) and ‘urf principle (customary practice).

scholarly journals INTELLECTUAL CAPITAL AND ISLAMIC SOSIAL REPORTING INDEX: THE CASE OF INDONESIAN ISLAMIC BANKING

2020 ◽  
Vol 8 (4) ◽  
pp. 728-736
Author(s):  
Risma Ayu Kinanti ◽  
Ririn Tri Ratnasari ◽  
Anidah Robani ◽  
Tika Widiastuti ◽  
Raditya Sukmana
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Partial Least Square ◽  
Least Square ◽  
Social Reporting ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Financial Reports ◽  
Banking Institutions ◽  
Positive Effect

Purpose of the study: This study aims to explain the effect of Islamic Banking Intellectual Capital and Islamic Social Reporting on the Islamic Financial Performance Index of Sharia Bank Indonesia. Methodology: The data obtained in this study consisted of a total of 368 from annual financial reports and sustainability reports that were officially published by each Islamic bank in Indonesia. The analytical method used in this study is the Partial Least Square (PLS) method which is processed with SmartPLS 3 software. Main Findings: There is an essential influence on the implementation of Islamic Banking Intellectual Capital and Islamic Social Reporting on Islamic Financial Performance in Islamic Banking in Indonesia. This finding also shows that intellectual capital and social reporting by Islamic banks have a significant positive effect on the financial performance of Islamic banks in Indonesia. Applications of this study: This research will help next researchers to develop research in the banking world and can be used by banking institutions to become scientific input. Besides, mobilizing and using intangible resources properly will improve the financial performance of an organization. Novelty / Originality of this study: The existence of Islamic Banking Intellectual Capital combined with Islamic Social Reporting can affect and improve the competitiveness of Islamic Banking in Indonesia. This study will be a complete research and provide clear information for practitioners and academics.

scholarly journals Sustainable business Islamic banks in Indonesia

Accounting ◽  
2021 ◽  
pp. 299-310
Author(s):  
Indra Siswanti ◽  
Yohanes Fery Cahaya
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Secondary Data ◽  
Partial Least Square ◽  
Least Square ◽  
Annual Reports ◽  
Company Size ◽  
Islamic Banks ◽  
Sustainable Business

The purpose of this study is to create a sustainable business model of Islamic banks in Indonesia through financial and non-financial aspects with financial performance as a mediate variable. The study uses quantitative approach by collecting secondary data of Islamic Banks from financial statements and annual reports over the period 2010-2018. The population of this study is 9 (nine) Islamic banks and the sample of research uses the census method. Data processing methods uses Partial Least Square. The results of the study stated that corporate governance has a significant effect on financial performance, intellectual capital has a significant effect on financial performance and company size has a significant effect on financial performance, but corporate governance has no effect on sustainable business. In addition, intellectual capital has a significant effect on sustainable business but company size has no effect on sustainable business. Moreover, financial performance has a significant effect on sustainable business, financial performance mediated the effect of corporate governance on sustainable business, financial performance partially mediated the effect of intellectual capital on sustainable business and financial performance mediated the effect of company size on sustainable business.

scholarly journals PARTIAL LEAST SQUARE ANALYSIS ON MICRO ENTERPRISES’ INTELLECTUAL CAPITAL AND PERFORMANCE: THE MEDIATING EFFECT OF TACIT KNOWLEDGE SHARING

2018 ◽  
Vol 2 (2) ◽  
pp. 22-33
Author(s):  
Rohana Ngah ◽  
T. Ramayah ◽  
Rahimah Sarmidy
Keyword(s):  
Knowledge Sharing ◽  
Organizational Performance ◽  
Tacit Knowledge ◽  
Intellectual Capital ◽  
Partial Least Square ◽  
Least Square ◽  
Mediating Effect ◽  
Partial Least Square Analysis ◽  
Tacit Knowledge Sharing ◽  
Micro Enterprises

Micro enterprises formed the majority of business establishments in Malaysia and play an important role in the business ecosystem. There are numerous studies of intellectual capital on large organizations and small and medium enterprises, however no study has been carried out on micro enterprises. The findings of the partial-least square analysis of one hundred and six micro enterprises found that intellectual capital has a significant relationship to organizational performance. In addition, the relationship between intellectual capital and organizational performance was significantly influenced by tacit knowledge sharing. In particular, tacit knowledge sharing proves to be extremely relevant when it comes to reinforcing the intellectual capital on the performance of micro enterprises in Malaysia. Limitations and implications for future studies are discussed.

scholarly journals The effect of intellectual capital on financial performance and market value of manufacturing companies listed in the Indonesia Stock Exchange 2010 - 2012

2015 ◽  
Vol 5 (1) ◽  
pp. 45
Author(s):  
Lusia Amaluddin Andriani ◽  
Erida Herlina
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Sampling Method ◽  
Stock Exchange ◽  
Value Added ◽  
Market Value ◽  
Partial Least Square ◽  
Least Square ◽  
Manufacturing Companies ◽  
Purposive Sampling

The purpose of this study is to examine the effect of intellectual capital on financial performance and market value of the manufacturing companies. The sample consists of manufacturing companies, which are consistently registered, in the Indonesia Stock Exchange during the period of 2010-2012. Intellectual capital was calculated using value added intellectual coefficient (VAICTM). The main components of VAICTM are physical capital (VACA), human capital (VAHU) and structural capital (STVA). Financial performance is measured using Return on Asset (ROA), Return on Equity (ROE) and Earning per Shares (EPS). Market value is measured using Price Book to Value (PBV) and Price Earnings Ratio (PER). The sampling in this study is using purposive sampling method. Based on the purposive sampling method, it was obtained 71 manufacturing companies listed in the Indonesia Stock Exchange during the period of 2010-2012. The data analysis was done by using Partial Least Square (PLS). The results show that: (1) intellectual capital has an effect on the financial performance, (2) intellectual capital has no effect on the market value, (3) financial performance is able to mediate the relationship between intellectual capital and market value.

scholarly journals Pengaruh Intellectual Capital Terhadap Kinerja Keuangan dan Nilai Perusahaan (Studi Pada Perusahaan Makanan dan Minuman Yang Terdaftar di BEI)

Owner ◽  
2022 ◽  
Vol 6 (1) ◽  
pp. 518-529
Author(s):  
Petrus Gani
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Sampling Method ◽  
Partial Least Square ◽  
Least Square ◽  
Significant Positive Effect ◽  
Company Value ◽  
Analysis Technique ◽  
Food And Beverage ◽  
Positive Effect

This study has objectives to analyze the influence of intellectual capital on financial performance and company value, and also examined the influence of financial performance as an intervening variable on company value. The population of the research is the manufacturing of sub- food and beverage industries listed in 2015-2019 consisted of 20 companies. This study has 12 companies as sample that chosen based on the purposive sampling method. Partial Least Square (PLS) as alternative of SEM and as data analysis technique using SmartPLS 3.3 application. The results of this study indicate that partially VAHU and STVA have a significant positive effect on financial performance. Meanwhile, VACA has no significant positive effect on financial performance. Simultaneously VAHU, STVA, and VACA have significant positive effect on financial performance. On the other side partially and simultaneously VAHU, STVA, and VACA have no directly significant positive effect on company value. But through financial performance.

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.

INFORMATION QUALITY AND THE ORGANIZATIONAL EFFECTIVENESS: THE MODERATING EFFECTS OF ORGANIZATIONAL CULTURE AMONG CONVENTIONAL AND ISLAMIC BANKS

2019 ◽  
Vol 5 (10) ◽  
pp. 01-10
Author(s):  
Basel J. A. Ali
Keyword(s):  
Organizational Culture ◽  
Organizational Performance ◽  
Business Performance ◽  
Information Quality ◽  
Partial Least Square ◽  
Least Square ◽  
Islamic Banks ◽  
Quality Of Information ◽  
Conventional And Islamic Banks

Quality of information is a priceless asset for organization to possess as its assist in carrying out business plans and changes. These business changes usually support the management executive in decision makings. In view of that, this study examines the information quality in AIS and its effects on organizational performance among conventional and Islamic banks in Jordan. To achieve that, proportionate stratified random sampling is applied to the information system users of sixteen conventional and Islamic banks in Jordan. Total copies of 600 questionnaires were distributed and only 250 among the returned copies were valid, suggesting a valid response rate of 41.7%. The study adopts the partial least square (Smart PLS 3) method to enhance the data analysis and perform hypotheses testing. Findings clearly show that quality of information is the key for business growth as it indicates a positive effect on organizational performance. Further result shows that organizational culture improves and increases business performance when combined with information quality. For this reason, conventional and Islamic banks in Jordan should have well-developed AIS as it assists organizations to -attain higher performance. There is need for more development in management skills to fully exploit the AIS in order to realize a greater organizational performance. In other words, full implementation of AIS should be given more priority by the managements of these conventional and Islamic banks.

scholarly journals Intellectual Capital, Market Value, and Financial Performance: Indonesia and Malaysia’s Banking Companies

2021 ◽  
Vol 4 (2) ◽  
pp. 135-151
Author(s):  
Sigit Hermawan ◽  
Nur Ravita Hanun ◽  
Nihlatul Qudus Sukma Nirwana ◽  
Clarisa Ika Candrawati
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Capital Market ◽  
Market Value ◽  
Partial Least Square ◽  
Least Square ◽  
Analysis Tool ◽  
Capital Management ◽  
Mediation Effects ◽  
Intellectual Capital Management

This study aims to determine the effect of intellectual capital on market value with financial performance as an intervening variable: evidence from banking companies in Indonesia and Malaysia. The analysis tool uses Partial Least Square to test hypotheses. The results of this study are intellectual capital affects the financial performance of banking companies in Indonesia but does not affect the banking companies in Malaysia. Intellectual capital does not affect the market value of banking companies in Indonesia but affects banks in Malaysia. Financial performance affects market value in Indonesian banking companies but does not affect banking companies in Malaysia. For indirect or mediation effects, the result is that financial performance can mediate the effect of intellectual capital on market value in banking companies in Indonesia but not for banks in Malaysia. Banking companies must pay attention to intellectual capital management because of its impact on financial performance and market value. The market will give a higher valuation to companies that have increased financial performance. Next, companies with improved financial performance will be responded positively to the market so that it will increase market value.

scholarly journals An Indonesian Empirical Study of The Relationship between Firm’s Intellectual Capital, Financial Performance and Market Value

2020 ◽  
Vol 9 (4) ◽  
pp. 451-458
Author(s):  
Debby Andria Silviani ◽  
Vitradesie Noekent
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Market Value ◽  
Sampling Technique ◽  
Partial Least Square ◽  
Least Square ◽  
Testing Tool ◽  
Version 2.0 ◽  
The Relationship

The purpose of this study is to explain the effect of Intellectual Capital on the company’s financial performance and market value. The population used in this study are all large trasing subsector companies listed on the Indonesia Stock Exchange during the 2009-2018 studi period. The sampling technique in this study uses a purposive sampling technique that uses criteria that have been determined by researches in order to obtain a sample of 13 companies. The testing tool used is Partial Least Square (PLS) version 2.0. The result of this study indicate that there is a positive and significant influence of intellectual capital on the company’s financial performance and intellectual capital also has a positive and significant on the company’s market value.The suggestion in this research is companie wish to consider the use of intellectual capital to improve financial performance and market value of the company.

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