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Journal : Review on Islamic Accounting

Intellectual Capital and Profitability of Islamic Commercial Banks in Indonesia: Izzuddin, Ahmad; Irfany, Mohammad Iqbal
Review on Islamic Accounting Vol. 5 No. 1 (2025): Review on Islamic Accounting
Publisher : SMART Insight

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58968/ria.v5i1.599

Abstract

The aim of this study is to investigate the impact of intellectual capital on the profitability of Indonesian Islamic Commercial Banks (BUS), highlighting the significance of intangible assets in enhancing financial performance. Utilizing regression analysis, this study scrutinizes secondary data from BUS's quarterly financial reports between 2015-2020, focusing on the impact of Value Added Intellectual Capital (VAIC), Non-Performing Financing (NPF), and Capital Adequacy Ratio (CAR) on Return on Assets (ROA). The study reveals that VAIC has a significant positive effect on ROA, indicating that effective management of intellectual capital can enhance profitability. Conversely, NPF shows a significant negative impact on ROA, while CAR does not significantly affect ROA. The combined influence of GDP, CAR, NPF, and VAIC explains a substantial portion of the variance in ROA. The scope is confined to BUS within 2015-2020. Future research could extend globally and incorporate more variables to enrich insights. Islamic banks should prioritize the effective management of intellectual capital, particularly human resources, to boost profitability and gain a competitive edge. Regulatory bodies, like the OJK, are recommended to establish policies that support and guide the management of intellectual capital within the banking sector.This study provides novel insights into the significance of intellectual capital in improving the profitability of Indonesian Islamic banks, emphasizing the need for effective management strategies and regulatory policies to enhance the sector's performance and contribution to economic growth.
Co-Authors Abd Charis Fauzan Abd. Rouf, Abd. Abdillah, Hartawan Abdul Hakim Abdul Malik Karim Amrullah Achmad Rosidi, Achmad Adeyanto, Zamroni Agus Yulianto Ahmad, Mohd Razlan Akbar, Reza Akhmad - Husein Albab, Muhammad Ulil Alfarisi, Ach. Fadhail Alfikri, Ahmad Faiz Shobir Alief Muhammad Alpaten, Ulil Albab Al aulia Amelia, Dewi Alvinatul Amrullah, Abdul Karim Andri, Sela Septi Angelika, Jessica Julian Ansori, Redhitya Wempi Anugerah, Ghifari Fajar Aprilia, Ira AR, Zulfahmi Ardian, Dafa Achmad Ari Susanti Aries Maesya Arisafitri, Novi Ariwibowo, Bagus Joni Ariyanti, Dyah Asrori, Tamam Azkarrula, Youla Afifah Basid, Abd. Budi Santoso Budiarto, Adi Camelia, Mirza Hidayatul Cantika Zaddana Dani Hari Tunggal Prasetiyo Djamaluddin, Thomas Djoko Wahyudi dwi ayu lestari, dwi ayu Eko Budi Satoto Eko Setiawan Evi Wahyuni, Evi Fadil SJ Fakhruddin Fakhruddin Farhatin, Dila Fashihuddin, Muhammad Fathor, Rozy Feti Fatimah Fika Afhamul Fuscha Fitria, Aulia ul Gozi, Ahmad Hady, Intan Ferial Hamas, Nuril Fathoni Haris Hermawan, Haris Haryono Haryono Hermin Arista Hesty Kesuma Putri Hidayah, Nailul Alvi Hidayat, Ehsan Hikmah, Nuzul Hoffmann, Susanne M. Irfan, Moh. Jamil, Faishol Jamiliya Susantin Kamila, Kamila Karim Faiz, Abd. Kartini, Dwi Putri Kartini, Dwi Putri Kasuwi Saiban Khamdani, Achmad Rifqi Khilmi, Akhmad Saifudin Khotimah, Wahyuni Danial Kurniawati Kurniawati Kusumawardani, Dyah Luthfi, Nur Ahmad M. Fathuddin Noor, M. Fathuddin M. Syaoqi Nahwandi Mahendra, Yusril Maheni Ika Sari Mahmudah, Yumna Mahsun Mahsun Makhturoh, Siti Mas Ahmad Baihaqi Masuwd, Mowafg Abrahem Miftahul Huda Misdiyanto Misdiyanto, Misdiyanto Moh. Halim Mohammad Iqbal Irfany Muhammad Himmatur Riza Muhammad Rasyid, Muhammad Muhammad Said Fadhel Muhsin Aseri, Muhsin Musahadi Musahadi, Musahadi Muslich Shabir Muslich Shabir Mustakim Mustakim Mutiara Tembang Langit Naelul Marom Nanda Khoirun Nisa Nasihun Amin Nasrulloh Nasrulloh Ni'ami, Mohammad Fauzan Ni’ami, Mohammad Fauzan Noor Dwi Kusuma Dewi, Indah Novita Sari Nur afdal Purnama putra Nur Amelia Ridha Nurdiansyah, Putra Pandu Dinata Nurfidiyanti, Hana Sri Nurkhanif, Muhammad Palevi, Yusron Paramita, Fina Pratna Putri, Dwi Nissa Kamalia Qiromi, Nur Mahmudi Rahayu, Jekti Rahmalia Rahmalia Rahman, Muhammad Habibur Rahmatullah, M. Azam Raizza Kinka Intifada Rasyid, Thaifur Redhitya Wempi Ansori Rekyan Regasari Mardi Putri, Rekyan Regasari Mardi Restu Trisna Wardani RETNO SULISTYOWATI reza akbar Rifki Muslim Rifqatul Husna Rifqi, Mohammad Iqbal Risa Rosalina Rizal Ramadhan Rizal Ramadhan Roibin Rouf, Abd Rusdiyanto Rusdiyanto Safira, Yunita Filda Dewi Said Fadhel, Muhammad Salwa, Nadalina Ghaida Samsuryaningrum, Ira Puspitadewi Sari, Sinta Anggita Siti Makhturoh Slamet Hambali Sofiatul Hasanah Suharto, Akhmad Sunyoto, Andrik Suwarto Suwarto Syifa, Siti Nur Tatit Diansari Reskiputri, Tatit Diansari Trias Setyowati, Trias Tutik Hamidah Tyas, Wenny Murtalining Ubaidi, Muh. Izzat Wafa, Zaein Wahyu Wulandari Wahyudi, Rizal Wardana, Andhena Wisnu Wibowo, Yohanes Gunawan Widyasari S, Citra Winahyu, Pawestri Yani, Rindi Yaqin, Alamul Yuli Wahyuni Yuniar, Etma Klisa Zain, Muhammad Fajri Kholili Zaman, Fakhru