THE IMPACT OF INTELLECTUAL CAPITAL ON THE SOUNDNESS OF ISLAMIC BANKS IN INDONESIA
Knowledge-based business is needed to gain and maintain a firm's competitive advantage by enhancing its innovation, information, and human knowledge, thereby creating value-added for the firm. This study examines the three components of Intellectual Capital, namely Capital Employed Efficienc...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/66707 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Knowledge-based business is needed to gain and maintain a firm's competitive
advantage by enhancing its innovation, information, and human knowledge,
thereby creating value-added for the firm. This study examines the three
components of Intellectual Capital, namely Capital Employed Efficiency (VACA),
Human Capital Efficiency (VAHU), and Structural Capital Efficiency (STVA), and
whether they impact the soundness of Islamic banking as measured by the RGEC
rating method (risk profile, good corporate governance, earnings, and capital
adequacy). The RGEC rating method was measured by composite rating from NPF,
FDR, GCG, ROA, ROE, OEOI, and CAR The data were obtained from 11 Islamic
banks registered with the OJK for six periods from 2015 – 2020 with 66 banking
annual financial reports. This study uses panel data regression analysis with the
Fixed Impact Model (FEM) using STATA 17.0 software. The results of this study
indicate that STVA has a negative impact on the soundness of Islamic banks.
Meanwhile, VACA and VAHU do not impact the soundness of Islamic banks in
Indonesia.
Keywords: Intellectual Capital, VACA, VAHU, STVA, RGEC |
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