2020
DOI : :10.18510/hssr.2020.8472
Keywords: Intellectual Capital, Islamic Social Reporting, Islamic Financial Performance, Islamic Banking.
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Purpose - This study aims to explain the effect of Islamic Banking Intellectual Capital and Islamic Social
Reporting on the Islamic Financial Performance Index of Sharia Bank Indonesia.
Design/methodology/approach - The data obtained in this study consisted of a total of 368 from annual financial reports and sustainability
reports that were officially published by each Islamic bank in Indonesia. The analytical method used in this study is the
Partial Least Square (PLS) method which is processed with SmartPLS 3 software.
Findings - There is an essential influence on the implementation of Islamic Banking Intellectual Capital and
Islamic Social Reporting on Islamic Financial Performance in Islamic Banking in Indonesia. This finding also shows that
intellectual capital and social reporting by Islamic banks have a significant positive effect on the financial performance
of Islamic banks in Indonesia.
Practical implications - This research will help next researchers to develop research in the banking world and can be
used by banking institutions to become scientific input. Besides, mobilizing and using intangible resources properly will
improve the financial performance of an organization.
Originality/value - The existence of Islamic Banking Intellectual Capital combined with Islamic Social
Reporting can affect and improve the competitiveness of Islamic Banking in Indonesia. This study will be a complete
research and provide clear information for practitioners and academics..