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Cross-Region Comparison Intellectual Capital and Its Impact on Islamic Banks Performance

Author

Listed:
  • Prasojo Prasojo

    (Faculty of Economics and Business, Padjadjaran University, Bandung 40132, Indonesia
    Faculty of Economics and Business Islam, State Islamic University Sunan Kalijaga, Yogyakarta 55281, Indonesia)

  • Winwin Yadiati

    (Faculty of Economics and Business, Padjadjaran University, Bandung 40132, Indonesia)

  • Tettet Fitrijanti

    (Faculty of Economics and Business, Padjadjaran University, Bandung 40132, Indonesia)

  • Memed Sueb

    (Faculty of Economics and Business, Padjadjaran University, Bandung 40132, Indonesia)

Abstract

This paper uses the value-added intellectual coefficient (VAIC) to assess the performance of Islamic banks (IBs) by measuring return on assets (ROA) and income from financing Islamic banks (IFIB). The model tests the relationship between intellectual capital (IC) and IB performance in various regions using a panel data regression methodology with a fixed-effects model and IB financial data for the period 2009–2019 from the BankScope database. The empirical results show that VAIC has a significant positive effect on IB performance using both ROA and IFIB proxies. Furthermore, human capital and capital employed efficiency have a positive relationship with ROA and IFIB, while structural capital efficiency has a relationship with ROA, but is not related to IFIB. The results can be used by companies in strategic decision making related to IC, especially human capital, structural capital, and employed capital.

Suggested Citation

  • Prasojo Prasojo & Winwin Yadiati & Tettet Fitrijanti & Memed Sueb, 2022. "Cross-Region Comparison Intellectual Capital and Its Impact on Islamic Banks Performance," Economies, MDPI, vol. 10(3), pages 1-15, March.
    • Handle: RePEc:gam:jecomi:v:10:y:2022:i:3:p:61-:d:767920
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    References listed on IDEAS

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    Cited by:

    1. Monika Barak & Rakesh Kumar Sharma, 2024. "Analyzing the Impact of Intellectual Capital on the Financial Performance: A Comparative Study of Indian Public and Private Sector Banks," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 20320-20348, December.
    2. Bojan Krstić & Ljiljana Bonić & Tamara Rađenović & Milica Jovanović Vujatović & Jasmina Ognjanović, 2023. "Improving Profitability Measurement: Impact of Intellectual Capital Efficiency on Return on Total Employed Resources in Smart and Knowledge-Intensive Companies," Sustainability, MDPI, vol. 15(15), pages 1-18, August.
    3. Faizi Weqar & Syed Noorul Shajar & Mohammad Kashif & Saqib Noman & Mohsin Khan, 2024. "Enhancing financial sustainability: the power of intellectual capital in India’s renewable energy industry," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.

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