Intellectual Capital, Bank Size, Bank Market Share, and Efficiency of Conventional Banks in Indonesia

Revista CEA

View Publication Info
Field Value
Title Intellectual Capital, Bank Size, Bank Market Share, and Efficiency of Conventional Banks in Indonesia
Capital intelectual, tamaño del banco, participación en el mercado bancario y eficiencia de los bancos convencionales en Indonesia
Creator Rahmat, SIP., M.H.
Subject Intellectual capital
bank size
bank market share
bank efficiency
Capital intelectual
tamaño del banco
participación en el mercado bancario
eficiencia bancaria
Description This study aims to empirically examine the effect of intellectual capital, bank size, and market share on the efficiency of commercial banks in Indonesia from 2013 to 2017. The results of a panel data analysis of two models show that intellectual capital (calculated simultaneously or individually per component), bank size, and market share have a significant effect on bank efficiency, as confirmed by a fixed-effect regression model. Said model indicates that the year-to-year effect of the independent variables is influenced by individual bank differences. In other words, dissimilar characteristics of banks’ intellectual capital and its components determine the effect of said variables on bank efficiency. Likewise, the asset ownership and market share of banks also distinguish their behavior in terms of bank efficiency.
Este trabajo tiene como objetivo estudiar empíricamente el efecto que el capital intelectual, el tamaño del banco y la participación en el mercado tuvieron sobre la eficiencia de los bancos comerciales en Indonesia entre 2013 y 2017. Los resultados de un análisis de datos de panel de dos modelos muestran que el capital intelectual (calculado de forma simultánea o individual por componente), el tamaño del banco y la participación en el mercado tienen un efecto significativo en la eficiencia bancaria, lo cual confirmó un modelo (regresión) de efectos fijos. Dicho modelo indica que la diferencia anual de las variables independientes está influenciada por las características particulares de las instituciones bancarias. En otras palabras, las diferentes características del capital intelectual de los bancos y sus componentes determinan el efecto de dichas variables en la eficiencia bancaria. Asimismo, los activos y participación en el mercado de los bancos distinguen su comportamiento en términos de eficiencia bancaria.
Publisher Instituto Tecnológico Metropolitano - ITM
Date 2020-01-30
Type info:eu-repo/semantics/article
Format application/pdf
Source Revista CEA; Vol. 6 No. 11 (2020); 71-88
Revista CEA; Vol. 6 Núm. 11 (2020); 71-88
Language eng
/*ref*/Ab-Hamid, M. F., Abdul-Rahman, A., Abdul-Majid, M., & Janor, H. (2017). Bank Market Risk and Efficiency of Commercial Banks in Malaysia. Jurnal Pengurusan, 51, 249-259.
/*ref*/Acedo, F. J., Barroso, C., & Galan, J. L. (2006). The resource‐based theory: dissemination and main trends. Strategic Management Journal, 27(7), 621-636.
/*ref*/Albertazzi, U., & Gambacorta, L. (2009). Bank profitability and the business cycle. Journal of Financial Stability, 5(4), 393-409.
/*ref*/Alhassan, A. L., & Ohene-Asare, K. (2016). Competition and bank efficiency in emerging markets: empirical evidence from Ghana. African Journal of Economic and Management Studies, 7(2), 268-288.
/*ref*/Allen, F., & Santomero, A. M. (1997). The Theory of Financial Intermediation. Journal of Banking & Finance, 21(11-12), 1461–1485.
/*ref*/Astiyah, S., & Husman, J. A. (2006). Fungsi Intermediasi Dalam Efisiensi Perbankan Di Indonesia: Derivasi Fungsi Profit. Buletin Ekonomi Moneter dan Perbankan, 8(4), 529-544.
/*ref*/Bawono, S., & Prestianawati, S. A. (2019). Rethinking of finance stability: Gold, fiat money and anti-crypto money policy puzzle impact in stability of internal value. Journal of Business and Finance in Emerging Markets, 2(1), 15-22.
/*ref*/Bayraktaroglu, A. E., Calisir, F., & Baskak, M. (2019). Intellectual capital and firm performance: An extended VAIC model. Journal of Intellectual Capital, 20(3), 406-425.
/*ref*/Beck, T., Demirgüç-Kunt, A., & Merrouche, O. (2013). Islamic vs. conventional banking: Business model, efficiency and stability. Journal of Banking and Finance, 37(2), 433-447.
/*ref*/Berger, A. N., & Hannan, T. H. (1998). The Efficiency Cost of Market Power in the Banking Industry: A Test of the "Quiet Life" and Related Hypotheses. The Review of Economics and Statistic, 80(3), 454-465.
/*ref*/Bidabad, B. (2018). General regulatory framework in rastin profit and loss sharing banking (part I-operational context), Journal of Business and Finance in Emerging Markets, 1(1), 11-26.
/*ref*/Bontis, N. (2010). Assessing knowledge assets: a review of the models used to measure intellectual capital. International Journal of Management Reviews, 3(1), 41-60.
/*ref*/Cabrita, M. D. R., & Bontis, N. (2008). Intellectual capital and business performance in the Portuguese banking industry. International Journal of Technology Management, 43(1-3), 212-237.
/*ref*/Chan, W. S., Frankel, R., & Kothari, S. P. (2004). Testing behavioral finance theories using trends and consistency in financial performance. Journal of Accounting and Economics, 38, 3-50.
/*ref*/Chen, M. C., Cheng, S. J., & Hwang, Y. (2005). An Empirical Investigation of the Relationship between Intellectual Capital and Firms’ Market Value and Financial Performance. Journal of Intellectual Capital, 6(2), 159-176.
/*ref*/Chen Goh, P., & Pheng Lim, K. (2004). Disclosing intellectual capital in company annual reports: Evidence from Malaysia. Journal of Intellectual Capital, 5(3), 500–510.
/*ref*/Claessens, S., & Laeven, L. (2004). What Drives Bank Competition? Some International Evidence. Journal of Money, Credit and Banking, 36(3), 563-583.
/*ref*/Clarke, M., Seng, D., & Whiting, R. H. (2011). Intellectual capital and firm performance in Australia. Journal of Intellectual Capital, 12(4), 505-530.
/*ref*/Delis, M. D., & Papanikolaou, N. I. (2009). Determinants of bank efficiency: evidence from a semi‐parametric methodology. Managerial Finance, 35(3), 260-275.
/*ref*/Di Patti, E. B., & Dell’Ariccia, G. (2004). Bank Competition and Firm Creation. Journal of Money, Credit and Banking, 36(2), 225-251.
/*ref*/Doan, A. T., Lin, K. L., & Doong, S. C. (2018). What drives bank efficiency? The interaction of bank income diversification and ownership. International Review of Economics & Finance, 55, 203-219.
/*ref*/Faruk, U., Disman, D., & Nugraha, N. (2017). Efficiency and Productivity Growth Analysis of the Islamic Banking in Indonesia Data Envelopment Analysis and Malmquist Productivity Index Approach. In International Conference on Islamic Economics, Business and Philanthropy. SCITEPRESS.
/*ref*/Fiordelisi, F., & Mare, D. S. (2014). Competition and financial stability in European cooperative banks. Journal of International Money and Finance, 45, 1-16.
/*ref*/Firer, S., & Williams, S. M. (2003). Intellectual capital and traditional measures of corporate performance. Journal of Intellectual Capital, 4(3), 348-360.
/*ref*/Girardone, C., Molyneux, P., & Gardener, E. P. M. (2004). Analysing the determinants of bank efficiency: the case of Italian banks. Applied Economics, 36(3), 215-227.
/*ref*/Heryana, T., & Saputra, R. I. (2013). Implikasi Modal Intelektual terhadap Kinerja Keuangan (Studi Empiris pada Perbankan di Bursa Efek Indonesia). In Forum Keuangan dan Bisnis II (pp. 1–11). Bandung: Laboratorium Akuntansi Program Studi Akuntansi.
/*ref*/Iazzolino, G., Migliano, G., & Gregorace, E. (2013). Evaluating intellectual capital for supporting credit risk assessment: An empirical study. Investment Management and Financial Innovations, 10(2), 44-54.
/*ref*/Jafari, M., Rezaeenour, J., Mahdavi Mazdeh, M., & Hooshmandi, A. (2011). Development and evaluation of a knowledge risk management model for project-based organizations: A multi-stage study. Management Decision, 49(3), 309-329.
/*ref*/Jeon, J. Q., & Lim, K. K. (2013). Bank competition and financial stability: A comparison of commercial banks and mutual savings banks in Korea. Pacific-Basin Finance Journal, 25, 253-272.
/*ref*/Joshi, M., Cahill, D., & Sidhu, J. (2010). Intellectual capital performance in the banking sector: An assessment of Australian owned banks. Journal of Human Resource Costing & Accounting, 14(2), 151-170.
/*ref*/Joshi, M., Cahill, D., Sidhu, J., & Kansal, M. (2013). Intellectual capital and financial performance: an evaluation of the Australian financial sector. Journal of Intellectual Capital, 14(2), 264-285.
/*ref*/Kamath, G. B. (2008). Intellectual capital and corporate performance in Indian pharmaceutical industry. Journal of Intellectual Capital, 9(4), 684-704.
/*ref*/Kegiatan usaha dan jaringan kantor berdasarkan modal inti bank, PIB. 14/26 (2012).
/*ref*/Kor, Y. Y., & Mahoney, J. T. (2004). Edith Penrose’s (1959) Contributions to the Resource-Based View of Strategic Management. Journal of Management Studies, 41(1), 183–191.
/*ref*/Lukman, D. (2009). Manajemen Perbankan (3rd Ed.). Ghalia Indonesia.
/*ref*/Mavridis, D. G., & Kyrmizoglou, P. (2005). Intellectual capital performance drivers in the Greek banking sector. Management Research News, 28(5), 43-62.
/*ref*/MacDougall, S. L., & Hurts, D. (2005). Identifying tangible costs, benefits and risks of an investment in intellectual capital: Contracting contingent knowledge workers. Journal of Intellectual Capital, 6(1), 53-71.
/*ref*/Mollabashi, D. F., & Sendani, J. (2014). The Impact of Intellectual Capital on The Risk of Bankruptcy of the Listed Companies in Tehran Stock Exchange. Indian Journal Science Research, 7(1), 105-113.
/*ref*/Neuberger, D. (1998). Industrial Organization of Banking: A Review. International Journal of the Economics of Business, 5(1), 97-118.
/*ref*/Newbert, S. L. (2007). Empirical Research on the Resource-Based View of the Firm: An Assessment and Suggestions for Future Research. Strategic Management Journal, 28(2), 121-146.
/*ref*/Nguyen, T. L. A. (2018). Diversification and bank efficiency in six ASEAN countries. Global Finance Journal, 37, 57-78.
/*ref*/Peraturan Bank Indonesia Nomor 14/26/PBI/2012. (2012).
/*ref*/Pulic, A. (1998). Measuring the Performance of Intellectual Potential in Knowledge Economy. In 2nd McMaster World Congress on Measuring and Managing Intellectual Capital (pp. 1-20).
/*ref*/Riyadi, S. (2006). Banking Assets and Liability Management (3rd Ed.). Publisher Institution FE UI.
/*ref*/Rugman, A. M., & Verbeke, A. (2002). Edith Penrose's contribution to the resource‐based view of strategic management. Strategic Management Journal, 23(8), 769-780.
/*ref*/Salem, S. M., & Rahman, N. A. (2016). The effect of bank-specific factors and unstable macroeconomic environment on bank efficiency: evidence from FCC. International Journal of Advanced and Applied Sciences, 3(9), 97-102.
/*ref*/Shaban, M., Duygun, M., Anwar, M., & Akbar, B. (2014). Diversification and Banks' Willingness to Lend to Small Businesses: Evidence from Islamic and Conventional Banks in Indonesia. Journal of Economic Behavior & Organization, 103, 39-55.
/*ref*/Shiu, H. J. (2006). The Application of the Value Added Intellectual Coefficient to Measure Corporate Performance: Evidence from Technological Firms. International Journal of Management, 23(2), 356-365.
/*ref*/Soedarmono, W., Machrouh, F., & Tarazi, A. (2013). Bank competition, crisis and risk taking: Evidence from emerging markets in Asia. Journal of International Financial Markets, Institutions and Money, 23, 196-221.
/*ref*/Song, H., Yu, K., & Lu, Q. (2018). Financial service providers and banks’ role in helping SMEs to access finance. International Journal of Physical Distribution & Logistics Management, 48(1), 69-92.
/*ref*/Sudarsono, H. (2009). The Impact of the Global Financial Crisis on Banking in Indonesia: Comparison between Conventional Banks and Islamic Banks. Journal of Islamic Economics Lariba, 3(1), 12-23.
/*ref*/Sumedrea, S. (2013). Intellectual Capital and Firm Performance: A Dynamic Relationship in Crisis Time. Procedia Economics and Finance, 6(13), 137-144.
/*ref*/Surat Keputusan Direksi Bank Indonesia, KEP/DIR. 31/310 (1999).
/*ref*/Ulum, I., Ghozali, I., & Chariri, A. (2008). Intellectual capital dan kinerja keuangan perusahaan; suatu analisis dengan pendekatan partial least squares (PLS). In Simposium Nasional Akuntansi.
/*ref*/Widyastuti, R. S., & Armanto, B. (2013). Banking Industry Competition in Indonesia. Bulletin of Monetary and Banking Economics, 15(4), 1-34.
Rights Derechos de autor 2020 Instituto Tecnológico Metropolitano

Contact Us

The PKP Index is an initiative of the Public Knowledge Project.

For PKP Publishing Services please use the PKP|PS contact form.

For support with PKP software we encourage users to consult our wiki for documentation and search our support forums.

For any other correspondence feel free to contact us using the PKP contact form.

Find Us


Copyright © 2015-2018 Simon Fraser University Library