Financial performance as mediation is influenced by diversification and intellectual capital on sustainability performance

Gregorius Jeandry and Nurul Fajriyanti
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Gregorius Jeandry: Khairun University
Nurul Fajriyanti: Khairun University

International Journal of Research in Business and Social Science (2147-4478), 2023, vol. 12, issue 3, 345-352

Abstract: This study examines and analyzes diversification and intellectual capital on sustainability performance mediated by financial performance. This research was conducted at Sharia Commercial Banks (BUS) in Indonesia, registered with the Otoritas Jasa Keuangan (OJK) for 2011 - 2018, with a total sample of 10 Islamic banks that meet the criteria according to the sampling method used, namely purposive sampling. The data analysis technique used SEM-PLS with the help of WarpPLS 7.0 software. The results showed that intellectual capital and financial performance had a positive effect on sustainability performance, but diversification was not significant on sustainability performance. Financial performance can mediate the relationship between diversification and intellectual capital on sustainability performance. The VAF method calculates the mediating effect with financial performance results partially mediates because the VAF value is less than 80%. Key Words:Diversification, Intellectual Capital, Financial Performance and Sustainability Performance.

Date: 2023
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