The Influence of Bank Characteristics on Financial Performance with Intellectual Capital as Intervening Variable (Study on National Commercial Banks in Indonesia)

Neneng Susanti(1*), Muhammad Bayu Aji Sumantri(2), Tanti Irawati Mukhhlis(3), Vincentia Wahju Widajatun(4),

(1) Faculty of Economics and Business, Widyatama University, Indonesia
(2) Faculty of Economics and Business, Widyatama University, Indonesia
(3) Faculty of Economics and Business, Widyatama University, Indonesia
(4) Faculty of Economics and Business, Widyatama University, Indonesia
(*) Corresponding Author




DOI: https://doi.org/10.26858/pdr.v6i1.37745

Abstract


This study aims to examine the effect of bank characteristics on financial performance using 7 financial proxies on bank characteristics from market concentration of third party funds (HDPK), credit market concentration (HLOA), capital adequacy (CAR), bank liquidity (LDR), bank efficiency. (BOPO), non-performing loans (NPL), leverage (LEV), and Financial Performance with the proxy of Return On Assets (ROA) as the dependent variable and Intellectual Capital as the Intervening variable. The method of data collection in this study is to collect secondary data. This research is focused on National Commercial Banks in Indonesia. The results of this study obtained that there is a significant effect between Bank Characteristics on Financial Performance with a T-Statistic of (5.360 > 1.96) and a coefficient value of 0.838. The effect of bank characteristics on intellectual capital has a significant effect with a T-statistic of (4,089 > 1.96) and a coefficient value of 0.626. Furthermore, the influence of Intellectual Capital on Financial Performance does not have a significant T-statistical effect of (0.304 < 1.96) and the coefficient value is -0.058.


Keywords


Bank Characteristics; Financial Performance; Intellectual Capital.

Full Text:

PDF

References


AL-Slehat, Z. A. F., & Altameemi, A. F. (2021). The relationship between non-interest revenue and sustainable growth rate: A case study of commercial banks in Jordan. The Journal of Asian Finance, Economics and Business, 8(5), 99–108.

Bian, W., Wang, X., & Sun, Q. (2015). Non‐interest income, profit, and risk efficiencies: Evidence from commercial banks in China. Asia‐Pacific Journal of Financial Studies, 44(5), 762–782.

Faez, A., Mirzaei, M., Orooei, M., & Ariyanpoor, A. (2014). Examining relationship between earnings management and stock liquidity using modified jones model: evidence from listed companies in Tehran Stock Exchange. Advances in Environmental Biology, 1903–1909.

Fen, Y., & P’ng, Y. (2019). Tobin’s Q and its Determinants: A Study on Huawei Technologies Co., Ltd. Ltd.(May 14, 2019).

Franco, M. A. (2017). Circular economy at the micro level: A dynamic view of incumbents’ struggles and challenges in the textile industry. Journal of Cleaner Production, 168, 833–845.

Ghosh, A. (2020). Discerning the impact of disaggregated non-interest income activities on bank risk and profits in the post-Gramm-Leach-Bliley Act era. Journal of Economics and Business, 108, 105874.

Hakim, F. (2017). The Influence of non-performing loan and loan to deposit ratio on the level of conventional bank health in Indonesia. Arthatama, 1(1), 35–49.

Kiweu, J. M. (2012). Income diversification in the banking sector and earnings volatility: evidence from Kenyan commercial banks.

Kizildag, M., & Ozdemir, O. (2017). Underlying factors of ups and downs in financial leverage overtime. Tourism Economics, 23(6), 1321–1342.

Quevedo, F. J., & Quevedo-Prince, A. K. (2019). A Predictive Model for the US Non-profit Market; A Macro to a Micro Perspective. Advanced Journal of Social Science, 5(1), 1–9.

Raharjo, P. G., Hakim, D. B., Manurung, A. H., & Maulana, T. N. A. (2014). The determinant of commercial banks’ interest margin in Indonesia: An analysis of fixed effect panel regression. International Journal of Economics and Financial Issues, 4(2), 295–308.

Said, M., & Ali, H. (2016). An analysis on the factors affecting profitability level of Sharia banking in Indonesia. Banks & Bank Systems, 11, Iss. 3, 28–36.

Setiawan, C., & Wisna, N. M. M. M. (2021). The Determinants of Net Interest Margin: An Empirical Study of Indonesia Category-IV Banks for the Period of 2014-2017. Studies of Applied Economics, 39(12).

Shaban, M., Duygun, M., Anwar, M., & Akbar, B. (2014). Diversification and banks’ willingness to lend to small businesses: Evidence from Islamic and conventional banks in Indonesia. Journal of Economic Behavior & Organization, 103, S39–S55.

Sriyana, J. (2015). Islamic banks’ profitability amid the competitive financing in Indonesia. International Journal of Applied Business and Economic Research, 13(4), 1695–1710.

Syadullah, M. (2018). ASEAN banking efficiency review facing financial services liberalization: The Indonesian perspective. Asian Development Policy Review, 6(2), 88–99.


Article Metrics

Abstract view : 29 times | PDF view : 2 times

Refbacks

  • There are currently no refbacks.


Copyright (c) 2022 Neneng Susanti, Muhammad Bayu Aji Sumantri, Tanti Irawati Mukhhlis, Vincentia Wahju Widajatun