Analysis of the influence of intellectual capital and bank risk on the performance of maqashid sharia based Islamic banking in Indonesia

Abstract

Purpose - This study aims to determine the effect of intellectual capital and bank risk on the performance of maqashid sharia based Islamic banking in Indonesia (An empirical study on Islamic Commercial Banks registered in Financial Services Authority (OJK) in 2017-2019).Method - This study used secondary data and used the multiple linear regression analysis method. The sample used was the purposive sampling method with the results of 12 Islamic Commercial Bank (BUS) as a sample of 14 BUS populations.Result - The results of this study stated that iB-VACA had a significant adverse effect on MSI variable; iB-VAHU had a positive but not significant effect on MSI variable; iB-STVA had an insignificant negative effect on MSI variable; CAR had an insignificant negative effect on MSI variable, and FDR had a positive but not significant effect on MSI variable.Implication - Islamic banking is advised to optimize its intangible assets and estimate the risks that will occur, as well as to pay attention to its sharia objectives to increase company value and performance.Originality - The secondary data source of this research is obtained from the official website of OJK, and financial report data is obtained from the website of each BUS.

effect of macroeconomics, capital, and asset growth on financial risk, earning and Islamic corporate social responsibility disclosure with corporate governance (GCG) as a moderating variable in Indonesian Islamic banking companies

“…Because capital or capital is the basis for carrying out financial activities. Septiani et al (2021), explains in the results of his research that there is an influence of capital on financial risk. The larger the existing capital, the smaller the financial risk.…”

The Influence of Intellectual Capital and Characteristics of the Sharia Supervisory Board on the Performance of Islamic Maqashid

“…According to Septiani, et al (2021), the benefit of humanity is a goal that can be achieved with the performance of maqashid sharia . The Maqashid sharia index is used to measure the performance of Islamic banking in accordance with sharia principles (Prilevi et al, 2020).…”

“…The maqashid sharia index variables, namely education, justice and welfare, are then presented in the form of a table of company performance criteria in the maqashid sharia perspective accompanied by indicators formulated by Mohammed et al, (2015) in the form of the maqashid sharia index . Factors that affect the performance of Maqashid Syariah are Intellectual Capital (Septiani et al, 2021), Size of the Sharia Supervisory Board (Nomran, et al 2017), Competence of the Sharia Supervisory Board (Izzatika and Lubis, 2016).…”

“…Intellectual material consists of knowledge, information, intellectual property that can be utilized to create competitive advantage (Zuliana and Aliamin, 2019). That way, to develop business competition, Islamic banking must optimize its intellectual capital , so that it can become a factor in increasing the performance of Islamic banking in accordance with the principles of maqashid sharia (Septiani et al, 2021).…”

“…Research on intellectual capital , including Septiani et al (2021), Shabrina et al (2021), and Pratiwi (2017) found results that intellectual capital has a positive effect on the performance of Maqashid Syariah . Bontis (2002) states that the three elements of intellectual capital , namely human capital, structural capital and capital employed , are related and interact effectively to create a strong capital base that will form a company's competitive advantage so that it can affect company performance.…”