Citation:

Muhammad Erland Satria Kisanggani, Rr. Karlina Aprilia Kusumadewi, Rr. Diana Atika Ghozali. "Impact of Intellectual Capital on Indonesian Banking Firms Performance in the Period of 2018 – 2022" International Research Journal of Economics and Management Studies, Vol. 3, No. 7, pp. 76-85, 2024.

Abstract:

This study is conducted to analyze the relationship between the components of intellectual capital, namely, Structural Capital Efficiency (SCE), Human Capital Efficiency (HCE), Relational Capital Efficiency (RCE), and Capital Employed Efficiency (CEE), and the performance of Indonesian banking firms during the period between 2018 and 2022 that will be proxied by Net Interest Margin (NIM). This study will discuss the phenomena of a significant discrepancy between the proportion of interest earned from loans and the interest paid from deposits. The population of this study consists of banking firms that are listed on the Indonesia Stock Exchange from 2018 – 2022. The selection of samples will utilize the purposive sampling method, which resulted in 34 firms in a 5-year period. Intellectual capital shall be measured using the Modified Value Added Intellectual Capital (MVAIC) model, and the hypotheses testing will utilize multiple linear regression. The result of this study showed that all components of intellectual capital influenced the banking firm’s performance positively and significantly. Based on this result, investment in every component of intellectual capital will result in a better Net Interest Margin (NIM).

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Keywords:

Banking firms, Firm Performance, Intellectual Capital, Net Interest Margin, Resource Based Theory.