Does Intellectual Capital Improve Bank Performance?
A Comparative Study of Indonesian State-Owned and Private Banking
- DOI
- 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/).
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 - 10.2991/aebmr.k.201116.004 ID - Utami2020 ER -