The Intellectual Capital Effect on Financial Performances at Islamic Insurance

The research has analyzed the intellectual capital effect of the Islamic insurance company's financial performance. Intellectual capital is quantified by VAICTM (Value Added Intellectual Capital), for efficiency components are physical capital coefficient (VACA), human capital coefficient (VAHU), and structural capital coefficient (STVA). Financial performance is quantified by ROA and RBC. Data is given from seven Islamic insurance companies during 2009-2013. Data analysis used is PLS (Partial Least Square). The result shows that intellectual capital factors had an affect the company's financial performance. Intellectual capital relation to financial performance parameter value estimated coefficient 0,845 with t-statistic 46,771. VAICTM enables to elucidate financial performance variable 71, 6%, is by finding the R-square PERF value (financial performance) 0,716.DOI: 10.15408/aiq.v7i2.1696


Introduction
Knowledge based industries concept leads to new business view. It exposes old paradigm of business view which is dominant on labor based business view. Ambar Widyaningrum (2004) figure out that knowledge based industries is transformation, capitalization and knowledge transfer process as a media to get earning. It can be new reference of knowledge based industries concept and it is crucial in uplifting company's performance, especially in finance reporting.
In this research, it will be appeared quantifying of Intellectual capital by "Value Added Intellectual Coefficient" (VAIC TM ). Ante Public offered a measure unit to asses value added efficiency as a result of company intellectual ability. Primary components of VAIC TM are comprises of physical capital (VACA -value added capital employed), human capital (VAHU -value added human capital) and structural capital (STVA -structural capital value added). Furthermore, Ante Public said that intellectual ability (VAIC TM ) indicates how both of human resource (physical capital and intellectual capital) has already used by some companies efficiently.
The role of human resource in Islamic insurance have important role, is agent to uplift up selling. On the other research also indicating that area of information technology (IT), marketing and human resource of Islamic insurance are needed to develop, because it will affect company profit. Those indicate that if company would invest in developing human resource, infrastructure, or marketing, those will become intellectual capital and value added of the company.
Indonesian insurance have no identify yet intellectual capital seriously as important factor. Till know, several companies in Indonesia have tend to use conventional based in forming their business. So that, products were produced meritless technology touching. Some instances are human capital, structure capital and customer capital. Those are indicated by many cases of fraud agent, claim matter. Those are difficult to break out and technology use have not maximized yet. Those matters come up a research challenge of intellectual capital problematic. Based on problems above, in this research will be elucidated: first, How to do treating, measuring and exposing intellectual capital of insurance company in Indonesia? Second, How to report intellectual capital which is able to affect for finance performance of Islamic insurance company?

Literature Review
Intellectual capital has many definitions. According to Sveiby (1998) (Sawarjuwono and Kadir, 2003) intellectual capital is the invisible intangible part of the balance sheet can be classified as a family of three, individual competence, internal structural, and external structure. Kadir (2003), figure out that intellectual capital is the results of three main organization elements (human capital, structural capital, costumer capital) have relation to knowledge and information rendering value added and eminency for company to compete.
Ante Public submitted that efficiency measure for assessing of value added is the result company intellectual ability (Ihyaul Ulum, 2009). VAIC™ model quantified intellectual capital to create value depend on the third relation of main components are physical capital, human capital, and structural capital. The first relation of VA using physic capital (CA) is called "value added capital coefficient" (VACA). It is indicator that is VA created by a physic capital. VACA draws how many value added of company created from capital used. In finance commentary, capital employed for equity accounting. If a unit of CE generating return bigger than other companies, means the company better in employing its CE. So that, CE employing for IC forming effort better. Human Capital Coefficient (VAHU) describes how much VA enables to deliver through expended fund for employs. The relation between VA and HC identified capability of HC to compose company value. HC is represented by employs expense in finance commentary for personnel expense. The third relations are Structural Capital Coefficient (STVA) that emerging structural capital (SC) contribution to form value. STVA assesses SC total needed to yield one rupiah from VA and it indicates how successful SC in creating value. Value Added Intellectual Coefficient (VAIC TM ) ratio created from additional coefficients like VACA, VAHU, and STVA.
According to Fahmi (2006), performance is work achievements. It used for an organization or on a unit of organization. So that, if connect to the definition, it can be drawn a simple definition that finance performance can be understood as outcome of managers in accomplishing them loaded task which having relation to company finance managing.
The research aimed to quantify finance performance using two ratios: a. Return on asset (ROA) indicates how much net profit acquired by company if quantified from active value. (Harahap, 2010). Firer and Williams in Ihyaul Ulum (2009) have already verified that intellectual capital quantified with VAIC TM and having positive effect for company finance performance. Besides that, it also demonstrates that intellectual capital has positive impact and company profitability is significance. It is indicated by ROA. Risk Based Capital (RBC) is fund sufficient risk ratio to endure and become a main indicator to quantify insurance of company finance balancing, especially relate to solvability.
Based on the theories, the conceptual framework of this research is to find relation between intellectual Capital (VAIC TM ) as exigent variable and company performance as endogen variable. Intellectual Capital (VAIC TM ) counted from VACA, VAHU and STVA are exigent variable. Exigent variable will affect endogen variable. Company performance is quantified by ROA and RBC endogen variable. The company performance will be affected by intellectual capital as exigent variable.
The first time intellectual capital studies began of Stewart article on 1991, Brain Power -How Intellectual Capital Is Becoming America's Most Valuable Asset. It arranged intellectual capital to being management agenda (Ihyaul Ulum, 2009). Stewart defines intellectual capital as intellectual matters (knowledge, information, intellectual property, experiencing) are valuable to have wealth. It is a thought collective power or useful set of insight. The research of Intellectual Capital offered some definitions. According to Moeheriono (2012), intellectual capital knowledge and ability have had by social collectivity: intellectual organizations, professionals and resource delegations of have high value and ability to run as knowledge.
Besides that, Sveiby (1998) in Sawarjuwono (2003), "The invisible intangible part of the balance sheet can be classified as a family of three, individual competence, internal structural and external structure". Kadir (2003), defines: Intellectual capital as the result of three main elements of organizations: human capital, structural capital, costumer capital. They relate to knowledge and technology has more valuable for companies by privilege organization competing (Sawarjuwono and Kadir, 2003).
One of definitions most used to describe intellectual capital is Organization for Economic Cooperation and Development (OECD) on 1999 told that intellectual capital is an economic account among two intangible asset categories: first, organizational (structural) capital refers to software system, distribution network and circle of availability. Second, human capital comprises of human resource in the organization (employs) and external resources are consumer and supplier (Ihyaul Ulum, 2013).
Furthermore, Edvinson and Malone in Ulum (2013), identified intellectual capital is hidden value of business. Hidden term is defined that intellectual capital has knowledge asset. In this case, knowledge divided into three categories: employs' knowledge (human capital), consumers' knowledge (customer or relation capital), and companies' knowledge (structural or organizational capital). The third categories formed an intellectual capital for companies.
Human capital refers to knowledge point; skill, innovation, and experience are owned by companies' member. Many experts describe as owned knowledge of companies' employs through training and education process. Human capital has important role for intellectual capital because it is being a customer capital invention process on human capital component and it is helped by structure capital. Human capital has interacted with customers to identify knowledge, skill, ability, and expected value by customers (Sangkala, 2006). Edvinson dan Manole exposes human capital as knowledge, skill, innovation and companies members' ability to settle up tasks.
VAIC TM method is promoted by Ante Public on 1997. Primary components of VAIC TM can be seen from companies sources based physic capital, human capital, structural capital. Moreover, the model designed to provide information of value creation efficiency companies' intangible asset. It began with companies ability to invent value added (VA). VA is being the most objective indicator to assess successful business and it represented companies ability in inventing value.VA is accounted as deviation among output and input.
In Tan  Physical capital use or value added capital coefficient is being indicator that VA is yielded by a unit of physic capital. VACA represented how much companies' value added have been invented from capital used. There are accounting equities in finance commentary capital employed. If a unit of CE delivering return better from other companies, means companies better to employing their CE. Thereby, CE utilization might be being efforts to form better IC.
Human Capital Coefficient (VAHU) indicates how much VA produced through expensed fund for employs. The relation between VA and HC indentified HC ability to invent companies' value. HC is represented by employs' expense in personnel accounting finance commentary.
Structural capital is companies' capability to reach out market, hardware, or software for companies supporting. Simply, it is supporting tool for employs. In this case, even though employs have high intelligence, but if they do not supported by adequate tools to apply some innovation, the capability would not employing intellectual capital. The third relations are structural capital coefficient (STVA) figure out structural capital in scoring. STVA quantifying SC total needed to deliver one rupiah from VA and it indicates how successful of SC in scoring.
Ante Public presented that SC are not independent standard as HC. It is dependent to value creation or as big HC contribution to value creation, as small SC contribution to it. Furthermore, Public said that SC is VA minus HC, it verified by empirical research on traditional industry sector. Value Added Intellectual Coefficient (VAIC TM ) ratio yielded from coefficient addition of VACA, VAHU and STVA. Public method's has intrigue to gain data easily and lead to furthermore which will be conducted to other data resources. Data are needed to get standard ratio from various finance numbers audited and usually it is from companies finance reporting. Alternative IC measurement is limited to engage finance and non finance indicators are adjusted with individual companies' profit (Roos et al., 1997in Tan et al., 2007. Those indicators are unavailable or unwritten by other companies, especially non finance. The impact, capability to realize alternative IC steps have various samples for comparative analysis being lack consistent (Firer andWilliams, 2003 in Tan et al., 2007).

Methods
This research is using quantitative approach to verify intellectual capital theories which affecting to finance performance. Intellectual capital is counted using VAIC TM method and verified using partial least square method. Moreover, intellectual capital results are described and analyzed as data found and interpreted as real condition. Secondary data used are finance reporting yearly, such as balance sheet, income statement and statement of funds companies financial health of the latest fund on 2009-2013 from insurance companies have being object of the research.
Data collection technique of the research is using documentation technique. This method covers data and information collecting through bibliofigurey study and literatures exploration. Finance reporting publications are taken from companies' website that has already being sample of the research. Insurance books on 2009-2010 from Badan Pengawas Pasar Modal dan Lembaga Keuangan's website www. bapepam.go.id, insurances books on 2011-2013 from Otoritas Jasa Keuangan's web www.ojk.go.id

Discussion
Referring the table indicates that ROA value growth is invented by each Islamic insurance companies for 2009 until 2013, ROA figures out companies management ability to draw income from asset management owned. Besides that, it can be seen that ROA value on 2009 until 2013 of highest to lowest: (1) Prudential Syariah by average of ROA 0, 36%, (2) AXA Mandiri Syariah 0, 32%, (3) Avrist Syariah 0, 16%, (4) BNI Life Syaria 0 ,07%, (5) AIA Syariah 0, 05%, (6) Allianz Syariah 0,04% and (7) Takaful Keluarga by average of ROA 0, 01%. In sum up of the table on 2009 that management of Prudential Syariah is best to employing asset owned. While, Takaful Keluarga has lowest position and it indicates less effective management company to employing asset for delivering profit. As high percentage of ROA value, as effective company management is to employing asset for delivering profit. The Table 2 figures out that RBC value growth for each Islamic insurance company during 2009 until 2013. Also it indicates adequacy capital of risk is borne by insurance company. In finance ministry regulation of 11/PMK.010/2011 about finance health of insurance business and reinsurance to Islamic principle, company have to maintain latest fun solvability by seeing finance health achievement ratio of latest fund the lowest 30 % from fund needed to anticipate the risk of possible loss caused of deviation in asset managing or responsibility. Moreover, the table identified that Islamic insurance company has already fulfilled lowest RBC standard, is 30%.
Islamic insurance companies which are included in good performers category are (1) AIA Syariah VAIC 2, 64 and (2) Allianz Syariah VAIC 2, 55. While, BNI Life Syariah is included in common performers VAIC 1, 96 and Takaful VAIC 1, 3 is bad performers. It is caused by structure capital value achieved of value added minimized to low human capital. In addition, low structural capital low is caused by lack of adequacy tool to apply innovation of companies' employs. The islamic insurance companies are included in good performers category are (1) Allianz Syariah VAIC 2, 5, and (2) AIA Syariah VAIC 2, 37. Then, BNI Life Syariah is common performer category is VAIC 1, 77 and Takaful Keluarga VAIC 1, 38 is still bad performer category. It is affected by forming value of structure capital value added is structure capital has decline. On 2010 net of total income has declined but employs expenses (commission and acquisition fee) is increased. On 2011, government has established finances regulation of 11/PMK.010/ 2011 discussing finance health of insurance and reinsurance business. In this case, there is a rule for Islamic insurance finance reporting, Islamic insurance business unit must report finance reporting separated and not combined with primary company. It impacts to some changing of VAIC categories. Islamic insurance companies are included in top performers category are (1) Prudential Syariah VAIC 6, 73, (2) AXA Mandiri VAIC 5, 72, (3) Allianz Syariah VAIC 4, 72. The STVA of Allianz syariah is -0, 09. It is caused employs expense bigger than value added (VA = OUT-IN). This is in line with Ante Public's theory has stated that as big contribution of HC in value creation, as smaller SC contribution. The last is (4) AIA syariah VAIC 3, 33.
Islamic insurance companies which are included in good performers category is BNI Life Syariah VAIC 2, 45. On 2012, Islamic insurance companies on top performers are AXA mandiri syariah, Allianz Syariah, Prudential Syariah and AIA Syariah. It is same as previous year and BNI Life rise up from good performer to be top performer. Then, Avrist syariah inclined being good performer from previous year as common performer. Takaful keluarga has lowest VAIC value from the previous years, is 1, 32 and being bad performer category. The top performers of Islamic insurance companies on 2013 are Avrist syariah, Prudential Syariah, AXA mandiri syariah, Allianz syariah, AIA syariah. BNI life syariah is good performer and Takaful keluarga is common performer. (3) Allianz VAIC 3,784; (4) AIA VAIC 3, 192; and (5) Avrist VAIC 3, 17. While, BNI Life Syariah VAIC 2, 418 is included in god performer and Takaful keluarga VAIC 1,452 is bad performer. The VAIC is proposed by Public is a model has pointed out how companies ability to manage and to maximize their intellectual asset for creating value of companies. Those figureics show up that Islamic insurance VAIC value every year have declined and inclined but the trends are tend to stable. Prudential Syariah and AXA Mandiri Syariah are Islamic insurance companies have top performer of VAIC value from 2009 to 20013. In the figureic, they can be seen that VAIC is 4, 0 and 7, 0. Avrist Syariah is included on top performer on 2009-2010 and it is in 3.0-4.0; but on 2011 has declined, is 2, 0. After that, Avrist Syariah has inclined trend on 2013, is 4, 87.
There are two concealed variables in this research. They are VAIC and finance performance (PERF). Those are formed by formative indicator. Formative indicator is indicator used as exigent and endogen variable forming or dependent and independent (Ghazali, 2006). VAIC variable is constructed by VACA indicator and STVA. Finance performance is configurated by ROA and RBC.
Formative indicator is assumed as among indicator have no correlation each other. So those, the standard of internal consistence of (cronbach alpha) not needed to examine formative construction of reliability (Ghozali 2006). Formative construction basically is regression relation from indicator to construction. To evaluate it is by seeing regression coefficient and significant of regression coefficient. The line model analysis of all concealed variables in PLS is comprised of three relations set: (1) outer model is specifying relation between concealed variable and its indicator; (2) inner model is pointing out relation to concealed variable (3) weight relation is how comprehensively the case from concealed variable can be estimated. The data analysis has described with software Smart PLS can be seen as follow: According to the outer model and t statistic, it can be concluded that t statistic indicator above 1, 697 (for significant level 0, 05. One tail test) are VACA, STVA, ROA and RBC, with each t statistic 3, 275; 2, 687; 12, 258 and 4, 073. Meanwhile, VAHU indicator has t statistic 0, 369 and not significant. For Outer Weight PLS can be seen on table below. Based on the table, it can be seen that RBC and ROA weight have shaped finance performance 0, 5764 and 1, 0595. Its t-statistic is 1, 697 (for significant level 0, 05. One tail test). The RBC and ROA are significant. For STVA, VACA and VAHU weight are 0, 9072; 0, 0395; and 0, 1285. For the significant t-statistics level is 1, 697 (significant level 0, 05. One tail test) The VAHU indicator is not significant So, VAHU have to eliminated and needed to estimate back through engaging indicators significant only.

Figure. 3. PLS Result: Recalculate Bootstrapping
After eliciting indicators have no significant and just engaging the significant indicators or close to significant, it can be known that each variables have weight 0, 050 (positive) and significance t statistic to p <0, 05. Structural model test is committed by finding R-square value has goodnessfit model. In addition, this test finds construct relation between significant value and R-square of the research model. The result pointed out that R-square PERF (finance performance) is 0, 716, means VAIC variable is able to deliver PERF variable 71, 6 %. The rest is delivered by another variable. The next test is to find significant of VAIC effect of finance performance by identifying coefficient parameter and t-statistic significant.
Referring to the result, the big coefficient parameter is 0, 845, means there is VAIC positive effect of finance performance of Islamic insurance company. As high of VAIC, the finance performance of Islamic insurance is as high company by significant t-statistic 46, 771. Therefore, t-statistic is bigger than t-table 1, 697. The PLS test indicates that intellectual capital has affected to company's finance performance. The relation both of them offered parameter coefficient estimation 0, 845 and significant to 0, 05 (t-significant table 0, 05 = 1, 697) with t-statistic 46, 771. VAIC variable enables to present finance performance variable 71, 6%, is by finding R-square PERF (finance performance) 0, 716.
The analysis afforded that as high of intellectual capital value of company owned, the company performance is increase. It means that the company has managed its intellectual resource maximally, it affordable valued added that will affect to company's finance performance increasing. The context of path power between intellectual capital and finance performance has found is in line and supporting Tan and friends' work (2007); Zulianti and Arya (2011), also Alipour (2012). But, the research finding is inconsistent with previous finding when indentifying weight and each significant indicator. The testimonies are proposed by Tan and friends (2007); Zulianti and Arya (2011); Alipour (2012) stated out that three components of VACA, VAHU and STVA as significant statistic to form VAIC and have influence to company's finance performance.
Meanwhile, the research finding offers evidence that only VACA and STVA as significantly statistic forming VAIC construct for five years observation to Islamic insurance companies (2009)(2010)(2011)(2012)(2013). It can be explained that the research taking sampling of Islamic insurance companies are running in employs service ability (agent of Islamic insurance) and structural capital use like software to support insurance claim service. Nevertheless, in Indonesia, the progress years of growth observing to join with Islamic insurance is not accompanied with insurance experts of human capital growth. The big cost incurred for employs have not inflict significant yet of company intellectual capital. It caused the total of insurance experts to handle it is still lack.
Furthermore, RBC and ROA indicators are statistically represent Islamic insurance company, because PLS of both indicators are significant. Intellectual capital is able to influence finance performance. Finance performance of this research is pointed out by ROA and RBC. The main purpose of this research is to analyze intellectual capital effect of finance performance in Islamic insurance companies. Intellectual capital is quantified by Value Added Intellectual Capital (VAIC TM ). Moreover, finance performance of Islamic insurance is quantified by Return on Asset (ROA) and Risk Based Capital (RBC). Sampling used are seven Islamic insurance companies for 2009-2013. Data analysis technique used is Partial Least Square (PLS) method.

Conclusion
Intellectual capital has effect to company's finance performance. Intellectual capital relation to finance performance is allowing parameter coefficient estimation 0, 845 and significant 0, 05 (t-significance table 0, 05 = 1, 697) with t-statistic 46, 771. As high of intellectual capital company owned, the company finance performance is increase. It means, company has managed its intellectual capital maximally be able to create value added which impacted to inclined of company finance performance. Finally, VAIC TM variable enabling to explain finance performance variable 71, 6 %, is by finding R-square PERF (finance performance) 0, 716.