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The Empirical Study on Intellectual Capital Approach toward Financial Performance on Rural Banking Sectors in Indonesia

Author

Listed:
  • Iwan Sidharta

    (School of Economic Pasundan, Jl. Turangga No. 37-41, Bandung, Indonesia,)

  • Azhar Affandi

    (Doctorate in Management Program, Universitas Pasundan, Jl. Sumatra No. 41, Bandung, Indonesia)

Abstract

The success of a company in high level competition requires public trust. Similarly, the banking services provider of rural banking sector in Java, Indonesia. To keep customer satisfaction with high trust of financial performance that customer loyalty can be achieved is necessary for public which is measured through financial performance. The aim of this study was to investigate the effect of intellectual capital in the banking sector on the island of Java, Indonesia to financial performance. Data processing techniques using multiple regression. The research method using purposive sampling and exploratory with a sample number 615. The data were analyzed using Eviews 7 and Microsoft Exel 2007. The results showed that the value added (VA) capital employee variables significantly influence toward financial performance and VA human capital variables and variable structural capital VA have significant effect also on toward financial performance. The overall test results produced an adjusted R2 indicate that the intellectual capital variables significantly influence toward financial performance.

Suggested Citation

  • Iwan Sidharta & Azhar Affandi, 2016. "The Empirical Study on Intellectual Capital Approach toward Financial Performance on Rural Banking Sectors in Indonesia," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 6(3), pages 1247-1253.
    • Handle: RePEc:eco:journ1:2016-03-55
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    References listed on IDEAS

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    Cited by:

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    3. Mila Austria Reyes & Monika Kussetya Ciptani & Teuku Ismail Fahmi, 2025. "Intellectual Capital Effects on Firm’s Profitability with Industry Types as Moderating Variable," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(1), pages 3390-3405, January.

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    Keywords

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    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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