Intellectual capital and financial performance of state-owned banking: evidence from Indonesia
by Rosita; Imam Ghozali; Puji Harto; Heri Susanto; Fatlina Zainuddin
International Journal of Learning and Intellectual Capital (IJLIC), Vol. 17, No. 1, 2020

Abstract: The purpose of this study is to investigate the relationship between the efficiency of intellectual capital (IC) and the financial performance of state-owned banking companies in Indonesia. IC Efficiency in state banks uses VAICTM with measures of human capital efficiency (HCE), structural capital efficiency (SCE) and capital employed efficiency (CEE). Financial performance using company return is profitability measured by return on asset (ROA) and return on equity (ROE). The samples of the study were state-owned banks in the period of 2012-2016. This study uses panel data from the financial statements of state-owned banking companies. The results of this study show that VAICTM has relationship with ROA, except CEE. However, ROE has no relationship with IC efficiency of all efficiency measures. Therefore, the efficiency of IC in state-owned banking companies is considered as part of the reason for the improvement of its performance in terms of ROA although not all efficiencies of IC must be done by banking companies, especially from CEE. It should be supported by financial and physical capital.

Online publication date: Mon, 17-Feb-2020

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Learning and Intellectual Capital (IJLIC):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email