Intellectual Capital Toward Market Performance: Profitability as a Mediating and Maqashid Sharia as a Moderating Variable

Widyantono Arif, Amiruddin Amiruddin, Darmawati Darmawati, Muhammad Irdam Ferdiansah

Abstract


Research aims: This study aims to determine the effect of intellectual capital on market performance with profitability as a mediating variable and the Maqashid Sharia Index (MSI) as a moderating variable in an empirical study of Indonesian Islamic banks.
Design/Methodology/Approach: This research utilized descriptive quantitative and explanatory methods to explain the relationship between variables. The research population covered all Islamic commercial banks registered with Bank Indonesia (BI), totaling 14. Purposive sampling was applied to determine the research sample. This study employed both primary and secondary data sourced from the government’s published documents, comprising the annual reports and the financial statements of Islamic commercial banks from 2017 to 2019. Path analysis and Moderated Regression Analysis (MRA) were run to analyze the data.
Research findings: In conclusion, all variables had a positive and significant relationship. The mediating variable significantly impacted the dependent variable, and the moderating variable also influenced the relationship between intellectual capital and market performance.
Theoretical contribution/Originality: Well-managed intellectual capital could produce work efficiency, affecting the quality of individual performance and directly impacting company performance. Good profitability in the company could foster a high level of trust in investors, affecting the provision of capital and improving company performance. Maqashid sharia is crucial in making decisions, especially for Islamic banks; efficient decisions could improve company performance.


Keywords


Intellectual capital; Market performance; Profitability; Maqashid Sharia Index

Full Text:

PDF

References


Abdolvand, M. A., & Kia, A. R. (2016). Examining the impact of company's ability associations and brand awareness on willingness to repurchase: The role of the perceived quality of product and brand associations. International Business Management, 10, 1868-1875. Retrieved from https://medwelljournals.com/abstract/?doi=ibm.2016.1868.1875

Al Nimer, M., Warrad, L., & Al Omari, R. (2015). The impact of liquidity on Jordanian banks profitability through return on assets. European Journal of Business and Management, 7(7), 229-232. Retrieved from https://www.iiste.org/Journals/index.php/EJBM/article/view/20532

Aliyi, I., Faris, A., Ayele, A., Oljirra, A., & Bayessa, M. (2021). Profitability and market performance of smallholder vegetable production: evidence from Ethiopia. Heliyon, 7(9), e08008. https://doi.org/10.1016/j.heliyon.2021.e08008

Amanchukwu, R. N., Stanley, G. J., & Ololube, N. P. (2015). A review of leadership theories, principles and styles and their relevance to educational management. Management, 5(1), 6-14.

Antoni, A. (2019). Etika dan Bisnis Perspektif Ekonomi Islam. Profit: Jurnal Kajian Ekonomi dan Perbankan Syariah, 2(1), 1–18. https://doi.org/10.33650/profit.v2i1.550

Anugrah, Y. R., & Dianawati, W. (2020). Corporate social responsibility (CSR) disclosure, earnings response coefficient (ERC), and the chance to grow. Cuadernos de Economía, 43(123), 243-470. Retrieved from https://cude.es/submit-a-manuscript/index.php/CUDE/article/view/19

Babajee, R. B., Seetanah, B., & Nunkoo, R. (2020). The determinants of hotel financial performance: an intellectual capital perspective. Journal of Hospitality Marketing & Management, 29(8), 1008–1026. https://doi.org/10.1080/19368623.2020.1703870

Baributsa, D., & Njoroge, A. W. (2020). The use and profitability of hermetic technologies for grain storage among smallholder farmers in eastern Kenya. Journal of Stored Products Research, 87, 101618. https://doi.org/10.1016/j.jspr.2020.101618

Basir, S., Arindha, P. T., & Prajawati, M. I. (2019). Intellectual Capital to the Firm Value with Profitability as Intervening Variable. Proceedings of the 2018 International Conference on Islamic Economics and Business (ICONIES 2018). https://doi.org/10.2991/iconies-18.2019.24

Bellucci, M., Marzi, G., Orlando, B., & Ciampi, F. (2020). Journal of Intellectual Capital: a review of emerging themes and future trends. Journal of Intellectual Capital, 22(4), 744–767. https://doi.org/10.1108/jic-10-2019-0239

Bertinetti, G. S., Cavezzali, E., & Gardenal, G. (2013). The Effect of the Enterprise Risk Management Implementation on the Firm Value of European Companies. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2326195

Block, J., Fisch, C., Vismara, S., & Andres, R. (2019). Private equity investment criteria: An experimental conjoint analysis of venture capital, business angels, and family offices. Journal of Corporate Finance, 58, 329–352. https://doi.org/10.1016/j.jcorpfin.2019.05.009

Bontis, N., Ciambotti, M., Palazzi, F., & Sgro, F. (2018). Intellectual capital and financial performance in social cooperative enterprises. Journal of Intellectual Capital, 19(4), 712–731. https://doi.org/10.1108/jic-03-2017-0049

Bouteska, A., & Regaieg, B. (2020). Loss aversion, overconfidence of investors and their impact on market performance evidence from the US stock markets. Journal of Economics, Finance and Administrative Science, 25(50), 451–478. https://doi.org/10.1108/jefas-07-2017-0081

Chandra, S., Ng, M., & Wijaya, E. (2020). Determinan Struktur Modal dalam Upaya Meningkatkan Profitabilitas Perusahaan Manufaktur di Indonesia. Jurnal Manajemen Dan Keuangan, 9(2), 172–186. https://doi.org/10.33059/jmk.v9i2.2550

Dewi, S. (2018). Analisis pengaruh ukuran perusahaan dan kinerja maqashid syariah index terhadap nilai perusahaan: Studi pada Bank Umum Syariah tahun 2012-2016. Undergraduate Thesis. Universitas Islam Negeri Maulana Malik Ibrahim.

Dura, J. (2018). Pengaruh Profitabilitas, Likuiditas, Solvabilitas, Dan Ukuran Perusahaan Terhadap Audit Report Lag Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia. Jurnal Ilmiah Bisnis Dan Ekonomi Asia, 11(1), 64–70. https://doi.org/10.32812/jibeka.v11i1.34

Dymitrowski, A., & Mielcarek, P. (2021). Business Model Innovation Based on New Technologies and Its Influence on a Company’s Competitive Advantage. Journal of Theoretical and Applied Electronic Commerce Research, 16(6), 2110–2128. https://doi.org/10.3390/jtaer16060118

Endarwati, S., & Sulastiningsih, S. (2020). Pengaruh Loan To Deposit Ratio, Non Performing Loan , Dan Pertumbuhan Dana Pihak Ketiga, Terhadap Profitabilitas Perbankan. Kajian Bisnis Sekolah Tinggi Ilmu Ekonomi Widya Wiwaha, 28(2), 119–140. https://doi.org/10.32477/jkb.v28i2.206

Esti, E. A. J. (2022). Etika dan Prinsip Wirausaha. Kewirausahaan (Peluang Dan Tantangan E-Commerce).

Friandi, S. Z., & Akbar, I. N. (2018). Analisa Pengaruh Intellectual Capital Terhadap Profitabilitas Dan Produktivitas Pada Sektor Perbankan Syariah Indonesia Cabang Kota Tangerang. CICES, 4(2), 155–170. https://doi.org/10.33050/cices.v4i2.502

Fuadah, L. L., & Kalsum, U. (2021). The Impact of Corporate Social Responsibility on Firm Value: The Role of Tax Aggressiveness in Indonesia. The Journal of Asian Finance, Economics and Business, 8(3), 209–216. https://doi.org/10.13106/JAFEB.2021.VOL8.NO3.0209

Gigante, G. (2013). Intellectual Capital and Bank Performance in Europe. Accounting and Finance Research, 2(4), 120-129. https://doi.org/10.5430/afr.v2n4p120

Habib, A., & Hasan, M. M. (2019). Business Strategy and Labor Investment Efficiency*. International Review of Finance, 21(1), 58–96. https://doi.org/10.1111/irfi.12254

Hanif, H. (2018). Pengaruh Islamic Intellectual Capital terhadap Kinerja Maqashid Syariah dengan Corporate Governance sebagai Variabel Pemoderasi. Thesis. Universitas Islam Indonesia.

Hanson, B., Lunn, J., van der Pluijm, B., Orcutt, J., Colwell, R., Trumbore, S., Becker, T., Diffenbaugh, N., Pincus, R., Liemohn, M., ten Brink, U., Brewer, P., Zhang, M., Hauck II, S., Hubbard, B., Goni, M., Thomas, E., Wilkinson, P., Moldwin, M., … Clark, M. (2017). Earth and Space Science for the Benefit of Humanity. Eos, 98. https://doi.org/10.1029/2018eo071991

Hassan, A., & Harahap, S. S. (2010). Exploring corporate social responsibility disclosure: the case of Islamic banks. International Journal of Islamic and Middle Eastern Finance and Management, 3(3), 203–227. https://doi.org/10.1108/17538391011072417

Hirdinis, M. (2019). Capital structure and firm size on firm value moderated by profitability. International Journal of Economics and Business Administration, 7(1), 174-191. https://doi.org/10.35808/ijeba/204

Iankovyi, V. (2021). Comparative analysis of the most important economic criteria for the company’s investment projects. Socio-Economic Research Bulletin, 2(77), 125–141. https://doi.org/10.33987/vsed.2(77).2021.125-141

Indriyani, W. W., & Mudjijah, S. (2022). Pengaruh debt to equity ratio, total asset turnover dan intellectual capital terhadap profitabilitas. Akuntabel, 19(2), 317-324.

Kamasak, R. (2017). The contribution of tangible and intangible resources, and capabilities to a firm’s profitability and market performance. European Journal of Management and Business Economics, 26(2), 252–275. https://doi.org/10.1108/ejmbe-07-2017-015

Karim, A., & Arif‐Uz‐Zaman, K. (2013). A methodology for effective implementation of lean strategies and its performance evaluation in manufacturing organizations. Business Process Management Journal, 19(1), 169–196. https://doi.org/10.1108/14637151311294912

Khoiriyah, V. N., & Salman, K. R. (2020). The Effect of the Maqashid Sharia Index, Company Size, and Company Age on Islamic Social Reporting. Muqtasid: Jurnal Ekonomi Dan Perbankan Syariah, 11(2), 117–132. https://doi.org/10.18326/muqtasid.v11i2.117-132

Lambey, R. (2021). The Effect of Profitability, Firm Size, Equity Ownership And Firm Age On Firm Value (Leverage Basis): Evidence from the Indonesian Manufacturer Companies. Archives of Business Research, 9(1), 128–139. https://doi.org/10.14738/abr.91.9649

Lim, S. A. N., & Herawaty, V. (2020). Analisis pengaruh profitabilitas, likuiditas, dan manajemen laba terhadap kinerja pasar dengan volume perdagangan sebagai pemoderasi. Kocenin Serial Konferensi.

Nemtseva, Y. V., & Vorozhbickaya, Y. V. (2021). Methodological aspects of evaluating a company’s investment attractiveness. RUDN Journal of Economics, 29(1), 114–125. https://doi.org/10.22363/2313-2329-2021-29-1-114-125

Nugroho, P. I., & Arjowo, I. S. (2014). The effects of sustainability report disclosure towards financial performance. International Journal of Business and Management Studies, 3(3), 225-239.

Nurmalasari, E. (2016). Analisis Pengaruh Intellectual Capital Terhadap Kinerja Keuangan Dan Nilai Pasar Perusahaan Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia. Undergraduate thesis. STIE Perbanas Surabaya.

Omar Mohammed, M., & Md Taib, F. (2015). Developing Islamic Banking Performance Measures Based On Maqasid Al-Shari’ah Framework: Cases Of 24 Selected Banks. Journal of Islamic Monetary Economics and Finance, 1(1), 55–77. https://doi.org/10.21098/jimf.v1i1.483

Pilvere-Javorska, A., Pilvere, I., & Rivza, B. (2020). Company capital structure’s theoretical framework: historical assessment and trends in the 21st century. Research for Rural Development 2020 : Annual 26th International Scientific Conference Proceedings. https://doi.org/10.22616/rrd.26.2020.028

Raheman, A., Afza, T., Qayyum, A., & Bodla, M. A. (2010). Working capital management and corporate performance of manufacturing sector in Pakistan. International Research Journal of Finance and Economics, 47(1), 156-169.

Setiawanta, Y., & Purwanto, A. (2019). Stakeholder power, sustainability reporting, and corporate governance: A case study of manufacturing industry at Indonesia's stock exchange. Scientific Papers of the University of Pardubice. Series D, Faculty of Economics and Administration. 46/2019.

Sombultawee, K., & Boon-itt, S. (2018). Marketing-operations alignment: A review of the literature and theoretical background. Operations Research Perspectives, 5, 1–12. https://doi.org/10.1016/j.orp.2017.11.001

Sujud, H., & Hashem, B. (2017). Effect of Bank Innovations on Profitability and Return on Assets (ROA) of Commercial Banks in Lebanon. International Journal of Economics and Finance, 9(4), 35-50. https://doi.org/10.5539/ijef.v9n4p35

Xiaoxia, L., Minghui, L., & Xin, Y. (2021). The effect of modified audit opinion on company's investment. Journal of Industrial Engineering and Engineering Management.

Королёва, Д. В. (2021). Normal Business Activities Of The Debtor In Bankruptcy: Criteria For Recognition And The Importance Of The Good Faith Of The Counterparty. The Rule-of-Law State: Theory and Practice, 17(1(63)), 140–150. https://doi.org/10.33184/pravgos-2021.1.11




DOI: https://doi.org/10.18196/jai.v24i1.12893

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Office:
Ruang Jurnal Fakultas Ekonomi dan Bisnis UMY
Gedung Ki Bagus Hadikusuma (E4) Lantai 2, Kampus Terpadu Universitas Muhammadiyah Yogyakarta,
Jalan Brawijaya (Lingkar Selatan), Tamantirto, Kasihan, Bantul, Daerah Istimewa Yogyakarta, Indonesia, 55183
Website: journal.umy.ac.id/index.php/ai - E-mail: jai@umy.ac.id

Journal of Accounting and Investment is licensed under Creative Commons Attribution Attribution-NonCommercial-NoDerivatives 4.0 International License

View My Stats