INTELLECTUAL CAPITAL AND BANKING PERFORMANCE: EXAMINING THE MODERATING EFFECT OF FIRM SIZE IN INDONESIA
Keywords:
Intellectual Capital, Financial Performance, Return on Assets, Firm Size, BankingAbstract
This study's overarching goal is to learn how intellectual capital affects banks' bottom lines and how company size moderates that effect. This study takes a quantitative tack by sifting through the 2020–2024 annual reports of Indonesian commercial banks for secondary data. The OJK has registered 105 commercial banks, making them the population. Value Added Intellectual Coefficient (VAIC) is used to assess intellectual capital, ROA is used as a proxy for financial success, and the natural logarithm of the total number of workers is used to measure business size. We used EViews 14's panel data regression to examine the data. The FEM was determined to be the best suitable model after conducting model selection using the Chow and Hausman tests. MRA was used to test the moderating impact. Intellectual capital does not significantly impact the financial performance of banks, according to the data. A moderating effect of company size is shown in the correlation between IP and bottom-line results. While these results do not show that intellectual capital improves financial performance on its own, they do suggest that it works better when a company is bigger. The correlation between IP and banks' bottom lines is, thus, completely moderated by business size.
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