The Influence of Islamic Corporate Governance (ICG) and Intellectual Capital (IC) on the Performance of Islamic Commercial Banks (BUS) in Indonesia
Siti Komala, Rumaisah Azizah Al Adawiyah, Kusnendi

Faculty of Economics and Business
Universitas Pendidikan Indonesia
Jl. Dr. Setiabudhi No. 229, Bandung City, Indonesia
sitik12[at]upi.edu, kusnendi[at]upi.edu, rumaisah.azizah[at]upi.edu

Abstract

The performance of Conventional Commercial Banks for the last 5 years has been higher than the performance of Islamic Commercial Banks. This means, that until now the performance of Islamic Commercial Banks in Indonesia is still low compared to the performance of Conventional Commercial Banks. Therefore, this study aims to analyze the influence of Islamic Corporate Governance and Intellectual Capital on the performance of Islamic Commercial Banks in Indonesia. The method used in this research is quantitative with descriptive causality design. In this study using purposive sampling technique with a total sample of eleven Islamic Commercial Banks. The cencus method used in this research is in the range of 2017-2020. Thus, the number of observations of 11 Islamic Commercial Banks for 4 years obtained 44 unit analysis. The data were analyzed using the SEM-PLS analysis method and the tools used were SmartPLS 3. Islamic Corporate Governance and Intellectual Capital has been well implemented by Islamic Commercial Banks in Indonesia. The results of the study indicate that Islamic Corporate Governance has an significant positive effect on the performance of Islamic Commercial Banks in Indonesia. Meanwhile, Intellectual Capital has an significant negative effect on the performance of Islamic Commercial Banks in Indonesia. Thus, Islamic Commercial Banks can examine the factors that can affect performance by paying attention to Islamic Corporate Governance and increasing Intellectual Capital. The implication of this research is that it can contribute to the development of Islamic economics in the field of Islamic banking, especially Islamic Commercial Banks in Indonesia.

Keywords: Islamic Corporate Governance, Intellectual Capital, performance of Islamic Commercial Banks

Topic: Islamic accounting, auditing, and performance changes