Main Article Content
Abstract
Purpose – This research aims to examine the influence of intellectual capital on company performance, analyze the moderating effect of revenue diversification, and provide additional insight into intellectual capital.
Design/methodology/approach – This research uses 38 banks in Indonesia that are listed on the Indonesia Stock Exchange (BEI) out of a total of 47 banks as research samples. The collected data was analyzed using linear regression and moderated regression analyses to test the effect of intellectual capital on company performance and the moderating impact of income diversification on intellectual capital and company performance.
Findings – The results of the regression analysis show that intellectual capital (VAIC) has a positive effect on company performance. In contrast, income diversification is having a moderating impact on intellectual capital and company performance. The intellectual capital component has varying influences on company performance. Whereas VACA has a positive effect on company performance, VAHU also has a positive effect on company performance. In contrast, STVA does not affect company performance. Based on the moderation test, income diversification does not moderate the relationship between intellectual capital components and company performance.
Research limitations/implications – This research uses the VAIC method to measure intellectual capital using financial report benchmarks. Future researchers should consider using new techniques that are more accurate and comprehensive in measuring intellectual capital. Thus, further research will provide a more precise picture of intellectual capital's influence in improving banking companies' performance.
Practical implications – This research shows that banking activities with an intellectual capital orientation tend to improve company performance. So, it is recommended for banking companies to utilize and develop the intellectual capital they have.
Originality/value – This research provides an understanding of intellectual capital. This research also contributes to developing economic theory related to intellectual capital and company performance.
Keywords
Article Details
Copyright (c) 2024 Eko Wahyuningtias, Ratih Kusumawardhani
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References
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- Albertini, E., & Berger-Remy, F. (2019). Intellectual capital and financial performance: A meta-analysis and research agenda. M@n@gement, 22(2), 216–249. https://doi.org/10.3917/mana.222.0216
- Ali, S., Murtaza, G., Hedvicakova, M., Jiang, J., & Naeem, M. (2022). Intellectual capital and financial performance: A comparative study. Frontiers in Psychology, 13, 1–12. https://doi.org/10.3389/fpsyg.2022.967820
- Alvino, F., Di Vaio, A., Hassan, R., & Palladino, R. (2021). Intellectual capital and sustainable development: a systematic literature review. Journal of Intellectual Capital, 22(1), 76–94. https://doi.org/10.1108/JIC-11-2019-0259
- Anik, S. (2021). The Effect of Intellectual Capital and Good Corporate Governance on Financial Performance and Corporate Value: A Case Study in Indonesia. Journal of Asian Finance, Economics and Business, 8(4), 391–402. https://doi.org/10.13106/jafeb.2021.vol8.no4.0391
- Asare, N., Laryea, M. M., Onumah, J. M., & Asamoah, M. E. (2020). Intellectual capital and asset quality in an emerging banking market. Asian Journal of Accounting Research, 6(1), 55–68. https://doi.org/10.1108/AJAR-05-2020-0034
- Asma, S. (2018). The Relation Between Corporate Values and Firm Performance of the World’s 142 Largest Banks. 11th IBA Bachelor Thesis Conference, 1–8. http://essay.utwente.nl/75383/
- Asutay, M., & Ubaidillah. (2023). Examining the Impact of Intellectual Capital Performance on Financial Performance in Islamic Banks. Journal of the Knowledge Economy. https://doi.org/10.1007/s13132-023-01114-1
- Aydoğmuş, M., Gülay, G., & Ergun, K. (2022). Impact of ESG performance on firm value and profitability. Borsa Istanbul Review, 22, S119–S127. https://doi.org/10.1016/j.bir.2022.11.006
- Cenciarelli, V. G., Greco, G., & Allegrini, M. (2018). Does intellectual capital help predict bankruptcy? Journal of Intellectual Capital, 19(2), 321–337. https://doi.org/10.1108/JIC-03-2017-0047
- Duho, K. C. T., & Onumah, J. M. (2019). Bank diversification strategy and intellectual capital in Ghana: an empirical analysis. Asian Journal of Accounting Research, 4(2), 246–259. https://doi.org/10.1108/AJAR-04-2019-0026
- Duho, K. C. T., & Onumah, J. M. (2021). Determinants of intellectual capital performance in banks: empirical insights from an emerging market. Afro-Asian J. of Finance and Accounting, 11(4), 583–606. https://doi.org/10.1504/AAJFA.2021.117740
- Githaiga, P. N. (2022). Income diversification and bank risk-taking: The moderating role of intellectual capital. Cogent Business and Management, 9(1), 2149142. https://doi.org/10.1080/23311975.2022.2149142
- Githaiga, P. N. (2023). Intellectual capital and bank performance: the moderating role of income diversification. Asia-Pacific Journal of Business Administration, 15(4), 509–526. https://doi.org/10.1108/APJBA-06-2021-0259
- Hardani, Auliya, N. H., Andriani, H., Fardani, R. A., Ustiawaty, J., Utami, E. F., Sukmana, D. J., & Istiqomah, R. R. (2020). Metode Penelitian Kualitatif & Kuantitatif (H. Abadi (ed.)). Penerbit Pustaka Ilmu. https://www.researchgate.net/publication/340021548_Buku_Metode_Penelitian_Kualitatif_Kuantitatif
- Jeandry, G., & Fajriyanti, N. (2023). Financial performance as mediation is influenced by diversification and intellectual capital on sustainability performance. International Journal of Research in Business and Social Science (2147- 4478), 12(3), 345–352. https://doi.org/10.20525/ijrbs.v12i3.2483
- Kinini, D. M., Ocharo, K. N., & Kariuki, P. W. (2023). Do income diversification and capital adequacy affect liquidity creation? A case study of commercial banks in Kenya. Cogent Business & Management, 10(2), 2240082. https://doi.org/10.1080/23311975.2023.2240082
- Luu, H. N., Nguyen, L. Q. T., Vu, Q. H., & Tuan, L. Q. (2020). Income diversification and financial performance of commercial banks in Vietnam. Review of Behavioral Finance, 12(3), 185–199. https://doi.org/10.1108/RBF-05-2019-0066
- Majumder, M. T. H., Ruma, I. J., & Akter, A. (2023). Does intellectual capital affect bank performance? Evidence from Bangladesh. LBS Journal of Management & Research, 21(2), 171–185. https://doi.org/10.1108/LBSJMR-05-2022-0016
- Nguyen, D. T., Le, T. D., & Tran, S. H. (2023). The moderating role of income diversification on the relationship between intellectual capital and bank performance evidence from Viet Nam. Cogent Business and Management, 10(1), 2182621. https://doi.org/10.1080/23311975.2023.2182621
- Ni, Y., Cheng, Y. R., & Huang, P. (2020). Do intellectual capitals matter to firm value enhancement? Evidences from Taiwan. Journal of Intellectual Capital, 22(4), 725–743. https://doi.org/10.1108/JIC-10-2019-0235
- Ocak, M., & Fındık, D. (2019). The impact of intangible assets and sub-components of intangible assets on sustainable growth and firm value: Evidence from Turkish listed firms. Sustainability, 11(19), 5–7. https://doi.org/10.3390/su11195359
- Octavianus, H., & Fachrudin, K. A. (2022). Income Diversification Strategy on Bank Stability: International Banks Evidence. Jurnal Keuangan Dan Perbankan, 26(3), 538–551. https://doi.org/10.26905/jkdp.v26i3.7764
- Ousama, A. A., Hammami, H., & Abdulkarim, M. (2020). The association between intellectual capital and financial performance in the Islamic banking industry: An analysis of the GCC banks. International Journal of Islamic and Middle Eastern Finance and Management, 13(1), 75–93. https://doi.org/10.1108/IMEFM-05-2016-0073
- Ovi, N., Bose, S., Gunasekarage, A., & Shams, S. (2020). Do the business cycle and revenue diversification matter for banks’ capital buffer and credit risk: Evidence from ASEAN banks. Journal of Contemporary Accounting & Economics, 16(1), 100186. https://doi.org/10.1016/j.jcae.2020.100186
- Pertiwi, S. P., & Suhartini, D. (2022). Pengaruh Diversifikasi Pendapatan, Modal Intelektual, Dan Pengungkapan Manajemen Risiko Terhadap Nilai Perusahaan(Studi Empiris Pada Bank Umum Konvensional Yang Terdaftar Di Bursa Efek Indonesia Tahun 2015-2020). Fair Value : Jurnal Ilmiah Akuntansi Dan Keuangan, 4(7), 1082–1094. https://doi.org/10.32670/fairvalue.v4i7.1179
- Pulic, A. (1998). Measuring the Performance of Intellectual Potential (IP) in Knowledge Economy. In C. Tiffany & S. Jennifer (Eds.), 19th Annual National Business Conference. DeGroote School of Business. https://www.bib.irb.hr/35384
- Riyani, D., Ardini, L., & Hermanto, S. B. (2022). Pengaruh manajemen risiko, modal intelektual dan inovasi terhadap nilai perusahaan dimediasi kinerja perusahaan. Owner, 6(4), 3670–3679. https://doi.org/10.33395/owner.v6i4.1170
- Sharma, S., & Anand, A. (2018). Income diversification and bank performance: evidence from BRICS nations. International Journal of Productivity and Performance Management, 67(9), 1625–1639. https://doi.org/10.1108/IJPPM-01-2018-0013
- Siska, S., Kusumawati, S. M., & Faliany, L. J. (2022). Analisis Dampak Modal Intelektual, Kepemilikan Manajerial, Kepemilikan Institusional, Dan Dewan Komisaris Independen Terhadap Kinerja Keuangan Di Masa Depan. Jurnal Manajemen, 18(2), 109–131. https://doi.org/10.25170/jm.v2i18.2876
- Soetanto, T., & Liem, P. F. (2019). Intellectual capital in Indonesia: dynamic panel approach. Journal of Asia Business Studies, 13(2), 240–262. https://doi.org/10.1108/JABS-02-2018-0059
- Tarigan, V. B., & Hadiprajitno, P. T. B. (2022). PENGARUH MODAL INTELEKTUAL DAN MODAL KERJA TERHADAP NILAI PERUSAHAAN DENGAN KINERJA PERUSAHAAN SEBAGAI VARIABEL INTERVENING. Jurnal Ilmu Manajemen Dan Akuntansi Terapan (JIMAT), 13(2), 70–84. https://doi.org/10.36694/jimat.v13i2.425
- Ulum, I. (2022). INTELLECTUAL CAPITAL: Model Pengukuran, Framework Pengungkapan, dan Kinerja Organisasi. UMM PRESS.
- Uniamikogbo, E., Okoye, E. I., & Amos, A. O. (2020). Income Diversification and Financial Performance of Selected Deposit Money Banks in Nigeria. International Journal of Applied Management Sciences and Engineering, 8(1), 89–105. https://doi.org/10.4018/ijamse.20210101.oa1
- Weqar, F., Khan, A. M., Raushan, M. A., & Haque, S. M. I. (2021). Measuring the Impact of Intellectual Capital on the Financial Performance of the Finance Sector of India. Journal of the Knowledge Economy, 12(3), 1134–1151. https://doi.org/10.1007/s13132-020-00654-0
References
Abbas, F., & Ali, S. (2022). Dynamics of diversification and banks’ risk-taking and stability: Empirical analysis of commercial banks. Managerial and Decision Economics, 43(4), 1000–1014. https://doi.org/https://doi.org/10.1002/mde.3434
Albertini, E., & Berger-Remy, F. (2019). Intellectual capital and financial performance: A meta-analysis and research agenda. M@n@gement, 22(2), 216–249. https://doi.org/10.3917/mana.222.0216
Ali, S., Murtaza, G., Hedvicakova, M., Jiang, J., & Naeem, M. (2022). Intellectual capital and financial performance: A comparative study. Frontiers in Psychology, 13, 1–12. https://doi.org/10.3389/fpsyg.2022.967820
Alvino, F., Di Vaio, A., Hassan, R., & Palladino, R. (2021). Intellectual capital and sustainable development: a systematic literature review. Journal of Intellectual Capital, 22(1), 76–94. https://doi.org/10.1108/JIC-11-2019-0259
Anik, S. (2021). The Effect of Intellectual Capital and Good Corporate Governance on Financial Performance and Corporate Value: A Case Study in Indonesia. Journal of Asian Finance, Economics and Business, 8(4), 391–402. https://doi.org/10.13106/jafeb.2021.vol8.no4.0391
Asare, N., Laryea, M. M., Onumah, J. M., & Asamoah, M. E. (2020). Intellectual capital and asset quality in an emerging banking market. Asian Journal of Accounting Research, 6(1), 55–68. https://doi.org/10.1108/AJAR-05-2020-0034
Asma, S. (2018). The Relation Between Corporate Values and Firm Performance of the World’s 142 Largest Banks. 11th IBA Bachelor Thesis Conference, 1–8. http://essay.utwente.nl/75383/
Asutay, M., & Ubaidillah. (2023). Examining the Impact of Intellectual Capital Performance on Financial Performance in Islamic Banks. Journal of the Knowledge Economy. https://doi.org/10.1007/s13132-023-01114-1
Aydoğmuş, M., Gülay, G., & Ergun, K. (2022). Impact of ESG performance on firm value and profitability. Borsa Istanbul Review, 22, S119–S127. https://doi.org/10.1016/j.bir.2022.11.006
Cenciarelli, V. G., Greco, G., & Allegrini, M. (2018). Does intellectual capital help predict bankruptcy? Journal of Intellectual Capital, 19(2), 321–337. https://doi.org/10.1108/JIC-03-2017-0047
Duho, K. C. T., & Onumah, J. M. (2019). Bank diversification strategy and intellectual capital in Ghana: an empirical analysis. Asian Journal of Accounting Research, 4(2), 246–259. https://doi.org/10.1108/AJAR-04-2019-0026
Duho, K. C. T., & Onumah, J. M. (2021). Determinants of intellectual capital performance in banks: empirical insights from an emerging market. Afro-Asian J. of Finance and Accounting, 11(4), 583–606. https://doi.org/10.1504/AAJFA.2021.117740
Githaiga, P. N. (2022). Income diversification and bank risk-taking: The moderating role of intellectual capital. Cogent Business and Management, 9(1), 2149142. https://doi.org/10.1080/23311975.2022.2149142
Githaiga, P. N. (2023). Intellectual capital and bank performance: the moderating role of income diversification. Asia-Pacific Journal of Business Administration, 15(4), 509–526. https://doi.org/10.1108/APJBA-06-2021-0259
Hardani, Auliya, N. H., Andriani, H., Fardani, R. A., Ustiawaty, J., Utami, E. F., Sukmana, D. J., & Istiqomah, R. R. (2020). Metode Penelitian Kualitatif & Kuantitatif (H. Abadi (ed.)). Penerbit Pustaka Ilmu. https://www.researchgate.net/publication/340021548_Buku_Metode_Penelitian_Kualitatif_Kuantitatif
Jeandry, G., & Fajriyanti, N. (2023). Financial performance as mediation is influenced by diversification and intellectual capital on sustainability performance. International Journal of Research in Business and Social Science (2147- 4478), 12(3), 345–352. https://doi.org/10.20525/ijrbs.v12i3.2483
Kinini, D. M., Ocharo, K. N., & Kariuki, P. W. (2023). Do income diversification and capital adequacy affect liquidity creation? A case study of commercial banks in Kenya. Cogent Business & Management, 10(2), 2240082. https://doi.org/10.1080/23311975.2023.2240082
Luu, H. N., Nguyen, L. Q. T., Vu, Q. H., & Tuan, L. Q. (2020). Income diversification and financial performance of commercial banks in Vietnam. Review of Behavioral Finance, 12(3), 185–199. https://doi.org/10.1108/RBF-05-2019-0066
Majumder, M. T. H., Ruma, I. J., & Akter, A. (2023). Does intellectual capital affect bank performance? Evidence from Bangladesh. LBS Journal of Management & Research, 21(2), 171–185. https://doi.org/10.1108/LBSJMR-05-2022-0016
Nguyen, D. T., Le, T. D., & Tran, S. H. (2023). The moderating role of income diversification on the relationship between intellectual capital and bank performance evidence from Viet Nam. Cogent Business and Management, 10(1), 2182621. https://doi.org/10.1080/23311975.2023.2182621
Ni, Y., Cheng, Y. R., & Huang, P. (2020). Do intellectual capitals matter to firm value enhancement? Evidences from Taiwan. Journal of Intellectual Capital, 22(4), 725–743. https://doi.org/10.1108/JIC-10-2019-0235
Ocak, M., & Fındık, D. (2019). The impact of intangible assets and sub-components of intangible assets on sustainable growth and firm value: Evidence from Turkish listed firms. Sustainability, 11(19), 5–7. https://doi.org/10.3390/su11195359
Octavianus, H., & Fachrudin, K. A. (2022). Income Diversification Strategy on Bank Stability: International Banks Evidence. Jurnal Keuangan Dan Perbankan, 26(3), 538–551. https://doi.org/10.26905/jkdp.v26i3.7764
Ousama, A. A., Hammami, H., & Abdulkarim, M. (2020). The association between intellectual capital and financial performance in the Islamic banking industry: An analysis of the GCC banks. International Journal of Islamic and Middle Eastern Finance and Management, 13(1), 75–93. https://doi.org/10.1108/IMEFM-05-2016-0073
Ovi, N., Bose, S., Gunasekarage, A., & Shams, S. (2020). Do the business cycle and revenue diversification matter for banks’ capital buffer and credit risk: Evidence from ASEAN banks. Journal of Contemporary Accounting & Economics, 16(1), 100186. https://doi.org/10.1016/j.jcae.2020.100186
Pertiwi, S. P., & Suhartini, D. (2022). Pengaruh Diversifikasi Pendapatan, Modal Intelektual, Dan Pengungkapan Manajemen Risiko Terhadap Nilai Perusahaan(Studi Empiris Pada Bank Umum Konvensional Yang Terdaftar Di Bursa Efek Indonesia Tahun 2015-2020). Fair Value : Jurnal Ilmiah Akuntansi Dan Keuangan, 4(7), 1082–1094. https://doi.org/10.32670/fairvalue.v4i7.1179
Pulic, A. (1998). Measuring the Performance of Intellectual Potential (IP) in Knowledge Economy. In C. Tiffany & S. Jennifer (Eds.), 19th Annual National Business Conference. DeGroote School of Business. https://www.bib.irb.hr/35384
Riyani, D., Ardini, L., & Hermanto, S. B. (2022). Pengaruh manajemen risiko, modal intelektual dan inovasi terhadap nilai perusahaan dimediasi kinerja perusahaan. Owner, 6(4), 3670–3679. https://doi.org/10.33395/owner.v6i4.1170
Sharma, S., & Anand, A. (2018). Income diversification and bank performance: evidence from BRICS nations. International Journal of Productivity and Performance Management, 67(9), 1625–1639. https://doi.org/10.1108/IJPPM-01-2018-0013
Siska, S., Kusumawati, S. M., & Faliany, L. J. (2022). Analisis Dampak Modal Intelektual, Kepemilikan Manajerial, Kepemilikan Institusional, Dan Dewan Komisaris Independen Terhadap Kinerja Keuangan Di Masa Depan. Jurnal Manajemen, 18(2), 109–131. https://doi.org/10.25170/jm.v2i18.2876
Soetanto, T., & Liem, P. F. (2019). Intellectual capital in Indonesia: dynamic panel approach. Journal of Asia Business Studies, 13(2), 240–262. https://doi.org/10.1108/JABS-02-2018-0059
Tarigan, V. B., & Hadiprajitno, P. T. B. (2022). PENGARUH MODAL INTELEKTUAL DAN MODAL KERJA TERHADAP NILAI PERUSAHAAN DENGAN KINERJA PERUSAHAAN SEBAGAI VARIABEL INTERVENING. Jurnal Ilmu Manajemen Dan Akuntansi Terapan (JIMAT), 13(2), 70–84. https://doi.org/10.36694/jimat.v13i2.425
Ulum, I. (2022). INTELLECTUAL CAPITAL: Model Pengukuran, Framework Pengungkapan, dan Kinerja Organisasi. UMM PRESS.
Uniamikogbo, E., Okoye, E. I., & Amos, A. O. (2020). Income Diversification and Financial Performance of Selected Deposit Money Banks in Nigeria. International Journal of Applied Management Sciences and Engineering, 8(1), 89–105. https://doi.org/10.4018/ijamse.20210101.oa1
Weqar, F., Khan, A. M., Raushan, M. A., & Haque, S. M. I. (2021). Measuring the Impact of Intellectual Capital on the Financial Performance of the Finance Sector of India. Journal of the Knowledge Economy, 12(3), 1134–1151. https://doi.org/10.1007/s13132-020-00654-0