Proceedings of the 2nd Annual International Conference on Business and Public Administration (AICoBPA 2019)

Does Intellectual Capital Improve Bank Performance?

A Comparative Study of Indonesian State-Owned and Private Banking

Authors
Rachma Bhakti Utami, Nila Firdausi Nuzula, Cacik Rut Damayanti
Corresponding Author
Rachma Bhakti Utami
Available Online 17 November 2020.
DOI
https://doi.org/10.2991/aebmr.k.201116.004How to use a DOI?
Keywords
intellectual capital, bank performance, Indonesian state-owned and private banks
Abstract

The main purpose of this study is to examine the effect of Intellectual Capital on the financial performance of Indonesian state-owned and private banking from the period of 2001 – 2018. The study used proxies such as; Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE), Relational Capital Efficiency (RCE) and Capital Employed Efficiency (CEE) as proxy for Intellectual Capital. This research covers 8 Indonesian conventional State-Owned (Himpunan Bank Negara / Himbara) and Private Banking (Bank Swasta). To assess the intellectual capital, this research use EVAICPlus method as quantifiable measure. The data for the study were analyzed by using Partial Least Square (PLS) and Mann Whitney U Test. Testing the effect of intellectual capital on both Indonesian state-owned and private banking shows a positive and significant result. The result of this study indicates that well allocated intellectual capital banks can improve its financial performance. Furthermore, the result of Mann Whitney U Test shows that there is no significant difference in intellectual capital between the state-owned banks and private banks in Indonesia. The study recommended that investment in intellectual capital is needed to improve financial performance of Indonesian banking.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2nd Annual International Conference on Business and Public Administration (AICoBPA 2019)
Series
Advances in Economics, Business and Management Research
Publication Date
17 November 2020
ISBN
978-94-6239-275-5
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.201116.004How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Rachma Bhakti Utami
AU  - Nila Firdausi Nuzula
AU  - Cacik Rut Damayanti
PY  - 2020
DA  - 2020/11/17
TI  - Does Intellectual Capital Improve Bank Performance?
BT  - Proceedings of the 2nd Annual International Conference on Business and Public Administration (AICoBPA 2019)
PB  - Atlantis Press
SP  - 17
EP  - 21
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201116.004
DO  - https://doi.org/10.2991/aebmr.k.201116.004
ID  - Utami2020
ER  -