• Sukiantono Tang Universitas Internasional Batam
Keywords: Intellectual Capital, VAIC Model, Modified VAIC Model, Firm Performance


With the rapid advancement of global economic progress, lot of innovation has been made and attract researchers to investigate Intellectual Capital (IC). The purpose of this paper is to find any relationship Intellectual Capital toward Financial Performance. Using Value Added Intellectual Coefficient (VAIC) Model and the modified version as the research model. This study takes secondary data from companies that published its annual financial statement in Indonesia Stock Exchange during 2017 until 2022. The gathered data then analysed by using regression panel method. This research shows that Human capital doesn’t significantly affect ROA and ROE but does significantly affect ATO in both VAIC model and Modified VAIC model. Structural capital also insignificantly affects ROE and ROE but significantly affect ATO when tested using VAIC model. Capital employed and innovation capital is proven to a positive significant effect to all dependent variables.


Aziz, M. E. H., Suryani, A. W., & Hasmi, H. (2023). Fair value and environmental disclosure impact on agricultural company financial performance. Jurnal Akuntansi Aktual, 10(1), 37.
Chouaibi, J., & Kouaib, A. (2015). Nos. 3/4, 2015 evidence from Tunisian manufacturing companies. In Int. J. Managerial and Financial Accounting (Vol. 7).
Chowdhury, L. A. M., Rana, T., & Azim, M. I. (2019). Intellectual capital efficiency and organisational performance: In the context of the pharmaceutical industry in Bangladesh. Journal of Intellectual Capital, 20(6), 784–806.
Dženopoljac, V., Janoševic, S., & Bontis, N. (2016). Intellectual capital and financial performance in the Serbian ICT industry. Journal of Intellectual Capital, 17(2), 373–396.
Dzenopoljac, V., Yaacoub, C., Elkanj, N., & Bontis, N. (2017). Impact of intellectual capital on corporate performance: evidence from the Arab region. Journal of Intellectual Capital, 18(4), 884–903.
Faruq, M. O., Akter, T., & Mizanur Rahman, M. (2023). Does intellectual capital drive bank’s performance in Bangladesh? Evidence from static and dynamic approach. Heliyon, 9(7), e17656.
Iwan, S., & Affandi, A. (2016). The Empirical Study on Intellectual Capital Approach toward Financial Performance on Rural Banking Sectors in Indonesia.
Juliani, M., & Tanwijaya, R. (2022). Determinan Profitabilitas Bank Konvensional yang Terdaftar di Otoritas Jasa Keuangan Indonesia. Global Financial Accounting Journal, 06(02), 265–287.
Maji, S. G., & Goswami, M. (2017). Intellectual capital and firm performance in India: A comparative study between original and modified value added intellectual coefficient model. International Journal of Learning and Intellectual Capital, 14(1), 76–89.
Mohammad, H. S., Bujang, I., & Hakim, T. A. (2018). The Impact of Intellectual Capital on Financial Performance of Malaysian Construction Firms. International Journal of Academic Research in Business and Social Sciences, 8(5), 173–186.
Nadeem, M., Dumay, J., & Massaro, M. (2019). If You Can Measure It, You Can Manage It: A Case of Intellectual Capital. Australian Accounting Review, 29(2), 395–407.
Nadeem, M., Gan, C., & Nguyen, C. (2018). The Importance of Intellectual Capital for Firm Performance: Evidence from Australia. Australian Accounting Review, 28(3), 334–344.
Nawaz, & Haniffa. (2017). Determinants of Financial Performance of Islamic Banks: An Intellectual Capital Perspective. 18, 63–86.
Nimtrakoon, S. (2015). The relationship between intellectual capital, firms’ market value and financial performance, empirical evidence from the ASEAN.
Ousama, A. A., & Fatima, A. H. (2015). Intellectual capital and financial performance of Islamic banks. International Journal of Learning and Intellectual Capital, 12(1), 1–15.
Ozkan, N., Cakan, S., & Kayacan, M. (2017). Intellectual capital and financial performance: A study of the Turkish Banking Sector. Borsa Istanbul Review, 17(3), 190–198.
Razafindrambinina, D., & Anggreni, T. (2011). Intellectual capital and corporate financial performance of selected listed companies in Indonesia. Malaysian Journal of Economic Studies, 48(1), 61–77.
Soewarno, N., & Tjahjadi, B. (2020). Measures that matter: an empirical investigation of intellectual capital and financial performance of banking firms in Indonesia. Journal of Intellectual Capital, 21(6), 1085–1106.
Vishnu, S., & Gupta, V. K. (2014). Intellectual capital and performance of pharmaceutical firms in India. Journal of Intellectual Capital, 15(1), 83–99.
Wang, Z., Cai, S., Liang, H., Wang, N., & Xiang, E. (2021). Intellectual capital and firm performance: the mediating role of innovation speed and quality. International Journal of Human Resource Management, 32(6), 1222–1250.
How to Cite
Tang, S. (2024). INTELLECTUAL CAPITAL AND FINANCIAL PERFORMANCE ON BANKING FIRMS IN INDONESIA. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 8(1), 558-570.