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Intellectual capital and financial performance measured by CAMELS perspective

Author

Listed:
  • Orlin Moria Adyaningrum

    (Universitas Katholik Indonesia Atma Jaya, Indonesia)

  • Yanuar Nanok Soenarno

    (Universitas Katholik Indonesia Atma Jaya, Indonesia)

Abstract

This study empirically examines the impact of intellectual capital on banks financial performance in 57 public listed banks from Indonesia, Malaysia, and Thailand over the period of 2019 to 2020. Intellectual capital is measured by Pulic’s Value Added Intellectual Coefficient (VAICTM), while banking performance is measured according to CAMELS analysis method. Through the method of partial least squares analysis to find the path coefficients value of each variable, the results obtained show that there is a significant positive impact of VAICTM on management quality (NPM) and earnings (ROA) in Indonesian, Malaysian, and Thai Banks, and significant negative impact of VAICTM on asset management (NPL) of Indonesian, Malaysian, and Thai Banks. On the other side, VAICTM is considered to have an insignificant impact on the capital adequacy (CAR), liquidity (LDR), and sensitivity to market risk (IER) of the in Indonesian, Malaysian, and Thai Banks in 2019-2020.

Suggested Citation

  • Orlin Moria Adyaningrum & Yanuar Nanok Soenarno, 2022. "Intellectual capital and financial performance measured by CAMELS perspective," Journal of Financial Studies, Institute of Financial Studies, vol. 12(7), pages 11-24, May.
    • Handle: RePEc:fst:rfsisf:v:12:y:2022:i:7:p:11-24
    DOI: 10.55654/JFS.2022.7.12.01
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    References listed on IDEAS

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    1. Y. A. Babalola & F. R. Abiola, 2013. "Financial Ratio Analysis of Firms: A Tool for Decision Making," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 1(4), pages 132-137.
    2. Meles, Antonio & Porzio, Claudio & Sampagnaro, Gabriele & Verdoliva, Vincenzo, 2016. "The impact of the intellectual capital efficiency on commercial banks performance: Evidence from the US," Journal of Multinational Financial Management, Elsevier, vol. 36(C), pages 64-74.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    intellectual capital; financial performance; banking; Value Added Intellectual Coefficient.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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