The Empirical Study on Intellectual Capital Approach toward Financial Performance on Rural Banking Sectors in Indonesia

Iwan Sidharta and Azhar Affandi
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Azhar Affandi: Doctorate in Management Program, Universitas Pasundan, Jl. Sumatra No. 41, Bandung, Indonesia

International Journal of Economics and Financial Issues, 2016, vol. 6, issue 3, 1247-1253

Abstract: The success of a company in high level competition requires public trust. Similarly, the banking services provider of rural banking sector in Java, Indonesia. To keep customer satisfaction with high trust of financial performance that customer loyalty can be achieved is necessary for public which is measured through financial performance. The aim of this study was to investigate the effect of intellectual capital in the banking sector on the island of Java, Indonesia to financial performance. Data processing techniques using multiple regression. The research method using purposive sampling and exploratory with a sample number 615. The data were analyzed using Eviews 7 and Microsoft Exel 2007. The results showed that the value added (VA) capital employee variables significantly influence toward financial performance and VA human capital variables and variable structural capital VA have significant effect also on toward financial performance. The overall test results produced an adjusted R2 indicate that the intellectual capital variables significantly influence toward financial performance.

Keywords: : Intellectual Capital; Value Creation; Firm Performance; Financial Performance (search for similar items in EconPapers)
JEL-codes: D83 M21 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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