Islamic Intellectual Capital and Takaful Financial Performance

Abstract

This study examines the effect of Islamic intellectual capital that consists of Structural Capital, Human Capital, and Capital Employed on takaful financial performance in Southeast Asia and the Middle East during 2016-2019. The dependent variable, takaful financial performance, is measured from the firm's ROE. The independent variables in the current study are the Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE), and Capital Employed Efficiency (CEE), and Audit Opinion used as a control variable. This study is a descriptive quantitative research using multiple linear regression analysis. The population of this study is the sharia insurance firms in Southeast Asia and Middle East countries with a total of 155 observations. This study shows that, two out of three variables are significant. Structural Capital Efficiency has a positive and significant effect, Capital Employed Efficiency has a negative and significant impact, and the Human Capital Efficiency has no significant effect on takaful financial performance. This study can be used as a reference, evaluation, and source of improvement for sharia insurance firms in optimizing the Islamic intellectual capital to improve the firm's financial performance. To achieve this objective, companies could improve employees' knowledge on sharia regulations, especially regarding sharia insurance, training, fulfilling employee's rights, improving system quality, services, and transaction procedures.

A Scientometric Study on Management Literature in Southeast Asia

“…The number of papers related to Islamic banking is quite large, discussing various topics, such as the determinants of Islamic bank's brand image (Ab Hamid et al 2021), CSR practice of Islamic banks (Mohd Nor and Hashim 2015), and risk management of Islamic banks (Aisyah and Zaid 2015). In addition, we found other papers related to other Islamic topics, such as takaful (e.g., Mohamed et al 2016;Nizar and Falikhatun 2021;Shaladdin et al 2018), with eight occurrences, and waqf, with five occurrences (e.g., Suhaili et al 2018;Thaker and Thaker 2015;Usman and Rahman 2021). The presence of Islamic finance and business studies in Jurnal Pengurusan is in line with Malaysia, which is considered the world's hub of Islamic finance, whose Islamic banking assets reached USD 297 billion in 2019 (Puri-Mirza 2021).…”