Relationship between intellectual capital (IC) and financial performance in Islamic banking industry / Nur Aliah Maisarah Abd Karim

This research wants 10 investigate the impact of intellectual capital (IC) to financial performance based on Islamic banking industry. The aim of research is to give some view to several large and small corporation on important of intellectual capital (IC) for component on sustainability. It also to emphasized by the public interest in sustainable business. There are four independent variables whereby Value-added intellectual capital (VAIC), Capital Employed efficiency (CEE), Human Capital efficiency (HCE), and Structural Capital efficiency (SCE). It depends on dependent variable that measure of profitability as ROA. The time series data for this research study are 2017 until 2020 which consists 4 years observations. In this research study, a regression analysis was use to evaluate the impact of IC towards financial performance. Sample of 20 Islamic banks based on Gulf Cooperation Council (GCC) countries which operates in Bahrain, Qatar, Saudi Arabia and UAE were chosen with period of 4 years data from annual report. Based on findings that outcome, the VAIC, HCE, SCE and CEE is insignificant result whereby there is no relationship between intellectual capital (IC) model with financial performance. Meanwhile, HCE, SCE and CEE having positive relationship with financial performance of Islamic banking industry and VA[C have negative relationship with financial performance. The study reveals that all independent variable gives no relationship with financial performance of intellectual capital (IC) and impact towards Islamic banking industry.