ABSTRACT

This research aims to examine influence of Intellectual Capital on the performance of
Indonesian Islamic Banks.
Intellectual Capital in this study was measured using the Pulic Model (VAIC™) as
the efficiency measure of three intellectual capital component: physical capital coefficient
(VACA), human capital coefficient (VAHU), and structural capital coefficient (STVA). Data
were collected from 8 Indonesian Islamic Banks from the year of 2004-2011. Partial Least
Square (PLS) was used to examine the relationship between firm’s financial performance
VAIC™, where the four financial ratios selected as the proxy measure for firm performance
(ROA, ROE, ATO and GR).
The results suggest that: IC influences financial company’s performance positively;
IC influences future financial company’s performance positively; and the rate of growth of
company’s IC (ROGIC) does not influence future company’s performance.
Keywords: Intellectual capital, Company Performance 's, Partial Least Square (PLS)