Intellectual Capital and Productivity: Predicting the Banking Profitability in Indonesia

Hersugondo Hersugondo, Eka Handriani

Abstract

This study was aimed at analyzing the effect of Intellectual Capital on the profitability and productivity of a Banking Company registered on the Indonesia Stock Exchange from 2016 to 2018. Purposive sampling was used to obtain a sample of 30 banking companies from 2016 to 2018. The empirical data was analyzed using the PLS method, outer test, and inner test models. The results showed that Intellectual Capital positively influences profitability and productivity. However, Value Added Human Capital (VAHU) and Structural Capital Value Added (STVA) have no significant positive effect on productivity. Also, the results show that Value Added Capital Employed (VACA) has a positive and significant impact on productivity.

 

 

Keywords: intellectual capital, profitability, productivity, banking

 

 


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