Citations


Contact Us

For Marketing, Sales and Subscriptions Inquiries
2637 E Atlantic Blvd #43110
Pompano Beach, FL 33062
USA

Conference List

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

Share :

Article History:

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


Abstract:

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.

Keywords:

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

Video:

Reference:


Statistics:

Google Scholor ideas Microsoft Academic Search bing Google Scholor

Funding:

This study received no specific financial support.

Competing Interests:

The authors declare that they have no competing interests.

Acknowledgement:

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

Related Article

( 1 ) Determinants of Share Price Movement in Nigeria -The Management Perspective
( 2 ) Determinants of Tax Revenue in Ethiopia (Johansen Co-Integration Approach)
( 3 ) Determinants of Import Demand Functions of Pakistan: An ARDL Bound Testing Approach
( 4 ) Determinants of Rural Residential Solid Waste Collection Services in Lagos State
( 5 ) Determinants of Public Sector Corruption in Nigeria
( 6 ) Determinants of Banks Profitability & Liquidity and the Role of BASEL III in Islamic & Conventional Banking Sector of Pakistan: A Case Study of NBP
( 7 ) Estimating the Economic Determinants of Technical Efficiency of Bioenergy in EU-28: An Application of Tobit Analysis
( 8 ) Determinants of Corporate Tax Avoidance Strategies among Multinational Corporations in Malaysia
( 9 ) Determinants of Exchange Rate in Nigeria: A Comparison of the Official and Parallel Market Rates
( 10 ) Determinants of Financial Performance and its Impact on the Growth of Islamic Bank Assets on Indonesia
( 11 ) Analysis of Credit Ratings Determinants: Evidences in Brazilian and American States
( 12 ) Determinants of Profitability and its Implications on Corporate Values (Studies at Ceramic, Porcelain and Glass Sub Sector Listed in Indonesia Stock Exchange, 2009 - 2018)
( 13 ) Gaining Trust After the Financial Crisis in the Nigerian Economy: A Conceptual Framework
( 14 ) Financial Integration and International Risk Diversification
( 15 ) Teachers Characteristics and Students’ Performance Level in Senior Secondary School Financial Accounting
( 16 ) The Nexus between Financial Crisis and Household Consumption: Evidence from Emerging Countries
( 17 ) Relationships between Financial Development and Economic Growth: A New Approach by Inputs
( 18 ) The Impact of Dividend Policy on Shareholders’ Wealth before and After Financial Melt down: Evidence from FMCG Sector in India
( 19 ) The Effect of Selected Financial Ratios on Profitability: An Empirical Analysis of Listed Firms of Cement Sector in Saudi Arabia
( 20 ) Stock Market Index Prediction with Neural Network during Financial Crises: A Review on Bist-100
( 21 ) The Effects of Changes in Accounting Standards on Value Relevance of Financial Statement Information of Malaysia and Nigeria Banks
( 22 ) The Impact of the Global Financial Crisis on the Debt, Liquidity, Growth, and Volume of Companies in Palestine Stock Exchange
( 23 ) Managerial Judgement Versus Financial Techniques in Strategic Investment Decisions: An Empirical Study on the Syrian Coastal Region Firms
( 24 ) Financial Deepening, Interest Rate Spread and Economic Growth: New Evidence from Sub-Sahara Africa
( 25 ) Financial Tables Reports Gaps in Jordanian Islamic Banks
( 26 ) Effects of Corporate Social Responsibility on Banks Financial Performance in Nigeria: A Study of United Bank of Africa
( 27 ) Financial Market Predictions with Factorization Machines: Trading the Opening Hour Based on Overnight Social Media Data
( 28 ) Leading Indicators and Financial Crisis: A Multi-Sectoral Approach Using Signal Extraction
( 29 ) Correlation between Financial Difficulties and Financing Strategies among Market Stallholders in Batangas City
( 30 ) The Relationship between Financial Development, Economic Growth, and Inflation: Evidence from Southeast Asia
( 31 ) The Mediating Effect of Financial Self-Efficacy on the Financial Literacy-Behavior Relationship: A Case of Generation Y Professionals
( 32 ) The Effect of Corporate Social Responsibility Disclosure on Corporate Financial Performance
( 33 ) Analyzing the Financial Soundness of Kuwaiti Banks Using CAMELS Framework
( 34 ) Analysing the Financial Strength of Nigeria: An Approach to Estimate the Index of Financial Safety
( 36 ) Financial Inclusion and Poverty Alleviation: The Contribution of Commercial Banks in West Africa
( 37 ) Do Derivative Instruments Increase Firm Risk for Indonesia Non-Financial Companies?
( 38 ) The Impact of Economic Growth, Oil Price, and Financial Globalization Uncertainty on Financial Development: Evidence from Selected Leading African Countries
( 39 ) Improved Performance Through Empowerment of Small Industry
( 41 ) Conceptual Framework of Green Infrastructure Performance Evaluation for Local Authority
( 42 ) The Association Between Corporate Risk Disclosure and Firm Performance in Emerging Country – The Case of Egypt
( 43 ) Moderating Effect of Demographics on Monetary Motivation and Employees Job Performance Relationship: Evidence from Malaysia
( 44 ) Stock Market Performance and Economic Growth: Evidence from Nigeria Employing Vector Error Correction Model Framework
( 45 ) The Influence of Information Technology and Communication Supply Chain Management Performance for Greater SME Manufacturing in Aguascalientes
( 46 ) Leveraging Telematics for Optimal Fleet Performance
( 47 ) Share Options, Share Award and Firm’s Performance: Evidence from Malaysian Public Listed Companies
( 48 ) The Effect of Outsourcing on Anglogold Ashanti Obuasi Mines Performance
( 49 ) The Mediating Effect of Market Orientation on the Relationship between Entrepreneurial Orientation Dimensions and Organizational Performance: A Study on Banks in Libya
( 50 ) The Investment Performance of Socially Responsible Investment in Japan
( 51 ) Appointment of Directors and Performance of Deposit Money Banks in Sub Saharan Africa: Do We Need More Executive or Non-Executive Directors?
( 52 ) Emotional Workgroup Performance and Group Effectiveness Egyptian Context
( 53 ) The Indirect Impact of Overconfidence on the Performance of Tunisian Firms Through their Financing Structure
( 54 ) How the Principles of the Sharing Economy Can Improve Organizational Performance of the US Public School System
( 55 ) Relevance of Stakeholders Theory, Organizational Identity Theory and Social Exchange Theory to Corporate Social Responsibility and Employees Performance in the Commercial Banks in Nigeria
( 56 ) The Influence of Communication, Work Motivation and Career Development on Elementary School Teacher’s Job Performance in Medan, Indonesia
( 58 ) The Moderating Effect of Governance Mechanisms on the Relationship Between Innovation Strategy and the Performance
( 59 ) Electronic Banking Innovations and Selected Banks Performance in Nigeria
( 60 ) An Empirical Investigation into the Key Drivers of Economic Performance in the CEMAC Zone: A Panel Corrected Standard Errors Approach
( 61 ) The Impact of Organisational Culture on Public Sector Performance: A Case Study of Local Authorities in Zimbabwe
( 62 ) Gamification on Sales Force Performance in Nigeria Bottling Company
( 63 ) An Investigation of the Impact of Organisational Structure on Organisational Performance
( 64 ) Exploring the Asymmetric Linkage between Commodity Prices and Fiscal Performance in Nigeria
( 65 ) Effects of Socio-Cultural Diversity on the Performance of Private Health Care Organizations in Kogi State
( 66 ) Organizational Memory and Employee Performance in Federal Parastatals in Enugu State of Nigeria
( 68 ) Value for Money (VFM) Audit and Public Sector Performance in Afikpo North Local Government Area of Ebonyi State, Nigeria
( 69 ) Determinant of MSMEs Performance and its Impact on Province GRDP in Indonesia
( 71 ) Trade Union Performance and Industrial Relations Climate in the Nigerian Petroleum Sector
( 72 ) Reminiscing Stock Splits Announcement: A Malaysian Case
( 73 ) Micro-Credits and Poverty Reduction in Dar-Es-Salaam, Tanzania: A Case Study of Dar-Es-Salaam Commercial Bank
( 74 ) The Life-Time of Tomorrow Party of Japan and Its Negative Impacts on the Anti-Nuclear Movements in Japan’s Politics
( 75 ) Republic of Zimbabwe National Water Policy: A Desk Review of the Gaps between the Policy and Its Implementation
( 76 ) Measuring the Quality of Islamic Banks Services and Its Impact on Customers Satisfaction A Survey Study on the Islamic Banks Customers in Lattakia-Syria
( 77 ) A Negative Rational Pigs Game and its Applications to Website Management
( 78 ) Land Use/Land Cover Change and its Effects on Bamboo Forest in Benishangul Gumuz Region, Ethiopia
( 79 ) The Role of Social Entrepreneurship in Pakistan and its Impact on Economy
( 80 ) The Effect of Internal and External Factors of Companies on Profitability and its Implications on Stock Price Index of State-Owned Banks
( 81 ) Activity Cost Management and its Effect on Enterprise Productivity
( 85 ) Impact of Labour, Capital and Human Resources in Productivity of Transport Firms in Nigeria
( 86 ) The Impact of Investment Climate Reforms on the Development of Small and Medium Sized Enterprises in Nigeria: A Policy Brief
( 87 ) The Impact of Human Capital on Economic Growth: Evidence from Tunisia Using Star and Stecm Models
( 88 ) Impact of Food Beverage Price Index and Exchange Rate Volatility on Economic Growth
( 89 ) Impact of Microfinance Lending On Economic Growth of Third world Nations: Study of Nigeria
( 90 ) The Impact of Rice Production, Consumption and Importation in Nigeria: The Political Economy Perspectives
( 92 ) Factors Impacting on SMEs Internationalization: Dairy Industry in Zimbabwe
( 94 ) An Assessment of the Impact of Information Communication Technology (ICT) On the Administration of Public Records: A Case Study of the Bolgatanga Municipal Assembly in the Upper East Region of Ghana-West Africa
( 95 ) Impact of Inflation on Per Capita Income in Emerging Economies: Evidence from BRICS Nations
( 97 ) The Impact of the Decline in Oil Prices in Latin America
( 100 ) Impact of FDI on Environmental Quality of China
( 101 ) Panel Data Analysis of the Impact of Economic Freedom as Well as Economic Conditions, The Quality of Life, and Public Education Spending on U.S. Undocumented Immigrant Settlement Patterns
( 103 ) Scenario Economic Impact Analysis of Offshore Fishing Tournaments in Ocean City
( 104 ) Impact of Telecommunications Market Liberalization on Labor Productivity in Economic Community of West African States
( 105 ) Impact of Participatory Decision Making on Organisational Goal Attainment
( 107 ) An Empirical Assessment of the Impact of Access to Credit on Farm Output: A Case Study of Sefwi-Wiawso Municipality Ghana
( 109 ) Impact of Exchange Rate Fluctuation on Selected Economic Sectors of the Nigerian Economy
( 110 ) Impact of Asymmetric Government Spending on Real Balances Demand
( 111 ) Investigating the Impact of Business Alignment on Job Gratification in an Organization: The Case of a University in Egypt
( 112 ) Impact of Network Finance Development on Inflation: Evidence from Chinese Market
( 113 ) The Impact of Military Spending on Economic Wellbeing in Nigeria
( 116 ) The Impact of Land Price Movements on the Properties in Croatia
( 117 ) The Impact of Social Media on Economic Growth: Empirical Evidence of Facebook, YouTube, Twitter and Pinterest
( 119 ) Consideration the Relationship Between Information Communications Technology and Economic Growth in Top 10 Economic
( 120 ) How Telecommunication Development Aids Economic Growth: Evidence from Itu Ict Development Index (IDI) Top Five Countries for African Region
( 121 ) Labor and Economic Growth in Zimbabwe
( 123 ) Exchange Rate Movements, Import And Economic Growth in Nigeria (1986-2010)
( 125 ) Long-Run Relationships and Causality Tests Between Military Expenditure and Economic Growth in India
( 126 ) Public Infrastructure Spending and Economic Growth in Nigeria: An Error Correction Mechanism (ECM) Approach
( 127 ) Study of the Relationship between Economic Growth and Inflation: Application to the Countries of the South Side of the Mediterranean: A Panel Data Approach
( 128 ) The Entrepreneurship, Knowledge Spillover and Economic Growth
( 129 ) Corruption’s and Democracy’s Effects on Economic Growth
( 132 ) Government Borrowing Behaviour: Implications for Private Sector Growth in Nigeria
( 133 ) Consideration the Effects of Water Sector Investment on Economic Growth in Iran
( 135 ) Bancassurance - Growth Guaranteed in India
( 136 ) Development, Preference Change, and Inequality in an Integrated Walrasian-General-Equilibrium and Neoclassical-Growth Theory
( 138 ) Causal Relationship between Imports and Economic Growth in Zimbabwe: An Empirical Analysis 1975 – 2013
( 139 ) Empirical Evidence on Municipal Tax Policy and Firm Growth
( 140 ) Dynamics of Inflation, Economic Growth, Money Supply and Exchange Rate in India: Evidence from Multivariate Analysis
( 141 ) Structural Breaks, Electricity Generation and Economic Growth in Nigeria
( 142 ) Comparative Analysis of the Effectiveness of Coub-Douglas, Real Business Cycle, and Keynsian Growth Models in Determining Economic Growth in Nigeria
( 143 ) The Link Between Agricultural Budgetary Allocation and Economic Growth in Nigeria
( 145 ) Public Sector Size and GDP Growth Nexus: Panel Data Estimation
( 146 ) An Investigation of the Relationship between Manufacturing Output and Economic Growth : Evidence from Nigerias Data Set
( 147 ) Macroeconomic Indicators and Capital Formation Growth in Nigeria: A New Evidence
( 148 ) Disaggregated Foreign Capital Inflows and Economic Growth in a Developing Economy: Empirical Evidence from Nigeria
( 149 ) Urban Population Growth and Environmental Sustainability in Nigeria
( 150 ) Industrialization and Economic Growth in Sub-Saharan Africa: The Role of Human Capital in Structural Transformation
( 151 ) Does Agricultural Sector Contribute to the Economic Growth in Case of Republic of Benin?
( 152 ) Satisfaction with Applications Fuels the Growth of Mobile Wallet Use in Thailand
( 153 ) Public Health Expenditure, Economic Growth and Health Outcomes in Nigeria
( 154 ) External Debt and Economic Growth: Two-Step System GMM Evidence for Sub-Saharan Africa Countries
( 155 ) Foreign Direct Investment - Growth Linkage in Sub-Saharan Africa: Is Governance a Mediating Factor?
( 156 ) The Transitional Relationship between Economic Growth and Exchange Rate in Ghana: An Empirical Approach
( 158 ) German Exports, Economic Growth and Foreign Demand: An Analysis of the Period 2000–2017
( 159 ) Does External Borrowing Affect Economic Growth? A Revisit of the Age-Long Debate for Nigeria
( 161 ) Nexus between Non-Oil Sectoral Contribution and Economic Growth in Nigeria 1981-2018
( 162 ) Investigating the Environmental Effects of Economic Growth in African Economies
( 163 ) Analysis of Causal Nexus between Defense Spending and Economic Growth in Nigeria: A Toda-Yamamoto Approach