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Determinants of Financial Performance and its Impact on the Growth of Islamic Bank Assets on Indonesia

M. Noor Salim


R. Pandji Ibnul Djausin

M. Noor Salim 1

R. Pandji Ibnul Djausin 2

  1. Mercu Buana University, Jakarta, Indonesia. 1

  2. PT Lentera Eterna Abadi, Bogor, Indonesia. 2

Pages: 27-41

DOI: 10.18488/journal.62.2020.71.27.41

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Article History:

Received: 08 October, 2019
Revised: 14 November, 2019
Accepted: 19 December, 2019
Published: 28 January, 2020


This study aims to examine and analyze the determinant of financial performance (return on assets), namely intellectual capital that consist of human capital, structural capital, capital employed and good corporate governance (GCG) that consist of board size and board of demography and its impact on the growth of Islamic banks assets in Indonesia for the period 2014 – 2018. Research data is annual report and GCG report of 12 Islamic banks in Indonesia for the period 2014-2018. The sampling method used was purposive sampling from 12 Islamic banks met the criteria to be the sample. The method of analysis used in this study is multiple linear regression. The results showed by model-1 that intellectual capital measured by human capital efficiency (HCE), structural capital efficiency (SCE) and capital employed efficiency (CEE) and GCG measured by board size (BS) and board of demography (BD) simultaneously are having significant influence to the return on assets (ROA) of the banks. The results showed by model-2 that intellectual capital measured by human capital efficiency (HSE), structural capital efficiency (SCE) and capital employed efficiency (CEE) and GCG measured by board size (BS) and board of demography (BD) simultaneously are having non-significant influence to the assets growth (AG) of the banks.
Contribution/ Originality
This study contributes to the existing literature by examining and analyze the determinant of financial performance (return on assets), namely intellectual capital that consist of human capital, structural capital, capital employed and good corporate governance (GCG) that consist of board size and board of demography and its impact on the growth of Islamic banks assets in Indonesia for the period 2014 – 2018.


Human capital efficiency, Structural capital efficiency, Capital employed efficiency, Board size, board of demography Return on assets, Assets growth.




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This study received no specific financial support.

Competing Interests:

The authors declare that they have no competing interests.


All authors contributed equally to the conception and design of the study.

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