INTELLECTUAL CAPITAL (IC), GOOD CORPORATE GOVERNANCE (GCG) DAN KINERJA KEUANGAN PADA PERBANKAN SYARIAH INDONESIA

Abstract

This research is motivated by the development of Islamic banking in Indonesia, which is still relatively stagnant in terms of assets and market share. On the other hand, the financial performance of Islamic banking is also predicted to decline in the next few years. The purpose of this study is to examine the effect of the company's Intellectual Capital (IC), which consists of components of Human Capital Efficiency (HCE), Structure Capital Efficiency (SCE), and Capital Employed Efficiency (CEE) on the financial performance of Islamic banking in Indonesia and the influence of Intellectual Capital (IC) and its sub-components on company performance moderated by the variable Good Corporate Governance (GCG). The object of this research is the entire population of Islamic Commercial Banks in Indonesia, amounting to 14 banks. The sample in this study is quarterly financial statement data according to the population of Islamic commercial banks, so the number of samples processed is 266. The analytical method used in this study is the Generalized Method of Moment (GMM) estimator model. The control variables used are bank size (Size) and Capital Adequacy Ratio (CAR). The study results found that Intellectual Capital (IC) has a negative and significant influence on the financial performance of Islamic banking. At the same time, when moderated by the Good Corporate Governance (GCG) variable, it is proven to strengthen the relationship between Intellectual Capital and Islamic banking financial performance so that the direction of the relationship becomes positive and significant. This condition follows the recommendations given by Boyd and Solarino in 2016.Further findings show that the Intellectual Capital (IC) components which include Human Capital Efficiency (HCE), Structure Capital Efficiency (SCE), and Capital Employed Efficiency (CEE), all have a direct influence that is positive on company performance. In contrast, when moderated by the Good Corporate Governance (GCG) variable, it does not strengthen the relationship. On this basis, this research implies that MUI and OJK, as regulators, can make a policy related to the quota of Islamic bank employees, where the majority of employees must have good basics of Islamic economics and finance