Factors Predicting Financial Sustainability in the Banking Sector

M. Sienly Veronica, Ida Ida, Dimas Peteriandi


The banking sectors are striving to operate their businesses during the Covid-19 pandemic. This requires innovation to enable the provision of services to the community and improve financial performance. Therefore, this research aimed to analyze the effect of intellectual capital on financial sustainability mediated by financial performance. The purposive sampling technique was employed, with 31 national private banks listed on the IDX as samples and PLS-SEM to solve the research hypothesis. The result demonstrated that the financial performance variable mediates the effect of intellectual capital on financial sustainability. The implication is that the banking sector should pay attention to its intellectual capital, which will improve its financial performance and promote the sustainability of the business.

How to Cite:

Veronica, M. S., Ida, I. & Peteriandi, D. (2022). Factors Predicting Financial Sustainability in the Banking Sector. Signifikan: Jurnal Ilmu Ekonomi, 11(2), 355-370. https://doi.org/10.15408/sjie.v11i1.25813.

JEL Classification: F65, H72, O43, Q01


intellectual capital, financial performance, sustainable, financial sustainability

Full Text:



Alhassan, A.L., & Asare, N. (2016). Intellectual capital and bank productivity in emerging markets: evidence from Ghana. Management Decision, 54(3), 589 -609. https://doi.org/10.1108/MD-01-2015-0025.

Almilia, L., Shonhadji, N., & Anggraini. (2009). Faktor – faktor yang Mempengaruhi Financial Sustainability Ratio pada Bank Umum Swasta Nasional Non Devisa Periode 1995-2005. Jurnal Akuntansi dan Keuangan, 11(1), 1 - 16. https://doi.org/10.9744/jak.11.1.pp.%2042-52.

Alvino, F., Vaio, A.D., Hassan, R., & Palladino, R. (2021). Intellectual capital and sustainable development: a systematic literature review. Journal of Intellectual Capital, 22(1), 76 - 94. https://doi.org/10.1108/JIC-11-2019-0259.

Ameer, R., & Othman, R. (2012). Sustainability practices and corporate financial performance: A study on top global corporations. Journal of Business Ethics, 108(1), 61 – 79. https://doi.org/10.1007/s10551-011-1063-y.

Amouzesh, N., Moeinfar, Z., & Mousavi, Z. (2011). Sustainable growth rate and firm performance: Evidence from Iran stock exchange. International Journal of Business and Social Science, 2(23), 249 – 255.

Asiaei, K., Barani, O., Bontis, N., & Arabahmadi, M. (2020). Unpacking the black box: How intrapreneurship intervenes in the intellectual capital-performance relationship. Journal of Intellectual Capital, 21(6), 809 - 834. https://doi.org/10.1108/JIC-06-2019-0147.

Asif, J., Ting, I.W.K., & Kweh, Q.L. (2020). Intellectual Capital Investment and Firm Performance of the Malaysian Energy Sector: A New Perspective From a Nonlinearity Test. Energy Research Letters, 1(3), 1 – 4. https://doi.org/10.46557/001c.13622.

Bartolacci, F., Paolini, A., Quaranta, A.G., & Soverchia, M. (2018). Assessing factors that influence waste management financial sustainability. Waste Management, 79, 571 – 579. https://doi.org/10.1016/j.wasman.2018.07.050.

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. https:// doi.org/10.1108/jic-12-2017-0184.

Bhanot, D., & Bapat, V. (2015). Sustainability index of microfinance institutions (MFIs) and contributory factors. International Journal of Social Economics, 42(4), 387 - 403. https://doi.org/10.1108/IJSE-01-2014-0001.

Budiarso, N.S.(2019). Intellectual Capital in Public Sector. Accountability, 8(1), 42 - 50. https://doi.org/10.32400/ja.23359.8.1.2019.42-50.

Chu, S.K. W., Chan, K.H., Yu, K.Y., Ng, H. T., & Wong, W.K. (2011). An Empirical Study of the Impact of Intellectual Capital on Business Performance. Journal of Information & Knowledge Management, 10(1), 11 - 21.

Clarke, M., Seng, D., & Whiting, R. H. (2011). Intellectual capital and firm performance in Australia. Journal of Intellectual Capital, 12(4), 505 - 530. https://doi.org/10.1108/14691931111181706.

Ciptaningsih, T. (2013). Uji Pengaruh Modal Intelektual terhadap Kinerja Keuangan BUMN yang Go Public di Indonesia. Jurnal Manajemen Teknologi, 12(3), 330 - 348. http://dx.doi.org/10.12695/jmt.2013.12.3.7.

Devi, S., Budiasih, I. G. N., & Badera, I. D. N. (2017). Pengaruh Pengungkapan Enterprise Management dan Pengungkapan Intelektual Capital terhadap Nilai perusahaan. Jurnal Akuntansi dan Keuangan Indonesia, 14(1), 20 - 45. doi: http://dx.doi.org/10.21002/jaki.2017.02.

Fajriyanti, N., Sukoharsono, E. G., & Adib, N. (2021). Examining the effect of diversification, corporate governance, and intellectual capital on sustainability performance. International Journal Of Research In Business And Social Science, 10(2), 12 – 20. https://doi.org/10.20525/ijrbs.v10i2.1053.

Fathi, S., Farahmand, S., & Khorasani, M. (2013). Impact of Intellectual Capital on Financial Performance. International Journal of Academic Research in Economics and Management Sciences, 2(1), 6 – 17.

Festa, G., Rossi, M., Kolte, A., & Marinelli, L. (2021). The contribution of intellectual capital to financial stability in Indian pharmaceutical companies. Journal of Intellectual Capital, 22(2), 337 – 359. https://doi.org/10.1108/JIC-03-2020-0091.

Githaiga, P. N. (2022). Revenue diversification and financial sustainability of microfinance institutions. Asian Journal of Accounting Research, 7(1), 31 - 43. https://doi.org/10.1108/AJAR-11-2020-0122.

Gozali, A., & Hatane, S. E. (2014). Pengaruh Intellectual Capital terhadap Kinerja Keuangan dan Nilai Perusahaan Khususnya di Industri Keuangan dan Industri Pertambangan yang Terdaftar di Bursa Efek Indonesia Tahun 2008 – 2012. Business Accounting Review, 2(2), 208-217.

Hair, J.F., Risher, J.J., Sarstedt, M., & Ringle, C.M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2 - 24. https://doi.org/10.1108/EBR-11-2018-0203.

Hamdan, A. (2018). Intellectual Capital and Firm Performance: Differentiating Between Accounting-Based and Market-Based Performance. International Journal of Islamic and Middle Eastern Finance and Management, 11(1), 139 - 151. https://doi.org/ 10.1108/IMEFM-02-2017-0053.

Harianja, H., & Fauzie, S. (2014).Analisis Value Added sebagai Indikator Intellectual Capital terhadap Kinerja Perbankan di Indonesia. Jurnal Ekonomi dan Keuangan, 2(5), 265 - 281.

Henock, M. S. (2019). Financial sustainability and outreach performance of saving and credit cooperatives: The case of Eastern Ethiopia. Asian Pacific Management Review, 24(1), 1 – 9. https://doi.org/10.1016/j.apmrv.2018.08.001.

Isola, W.A., Adeleye, B.N., & Olohunlana, A.O. (2020). Evidence from Nigeria: female boardroom participation, intellectual capital efficiency, and firm performance in developing countries. Journal of Economics, Finance and Administrative Science, 25(50), 413 - 424. http://dx.doi.org/10.1108/JEFAS-03-2019-0034.

Jordao, R. V.D., & Almeida, V.R.D. (2017). Performance measurement, intellectual capital, and financial sustainability. Journal of Intellectual Capital, 18(3), 643 - 666. https://doi.org/10.1108/JIC-11-2016-0115.

Kapoor, S., & Sandhu, H. S. (2010). Does it pay to be socially responsible? An empirical examination of the impact of corporate social responsibility on financial performance. Global Business Review, 11(2), 185 - 208. https://doi.org/10.1177/097215091001100205.

Kasoga, P. S. (2020). Does investing in intellectual capital improve financial performance? Panel evidence from firms listed in Tanzania DSE. Cogent Economics & Finance, 8(1), 1 - 26. https://doi.org/10.1080/23322039.2020.1802815.

Lukman, H., & Tanuwijaya, H. (2020). The Effect of Financial Performance and Intellectual Capital on Firm Value with CSR as a Mediating Variable in Banking Industry. Advances in Economics, Business and Management Research, 174, 353 – 359.

Makki, M. A. M., & Lodhi, S. A. (2014). Impact of corporate governance on intellectual capital efficiency and financial performance. Pakistan Journal of Commerce and Social Sciences, 8(2), 305 – 330. http://hdl.handle.net/10419/188140.

Marwa, N., & Aziakpono, M. (2015). Financial sustainability of Tanzanian saving and credit cooperatives. International Journal of Social Economics, 42(10), 870 – 887. https://doi.org/10.1108/IJSE-06-2014-0127.

Massaro, M., Dumay, J., Garlatti, A., & Dal Mas, F. (2018). Practitioners’ views on intellectual capital and sustainability: From a performance-based to a worth-based perspective. Journal of Intellectual Capital, 19(2), 367 - 386. https://doi.org/10.1108/JIC-02-2017-0033.

Mohammad, N., Abedin, Md. J., & Rahman, A. (2017). Sustainability of Banking Sectors in Bangladesh: A Study Based on Emerging Role of Corporate Governance, Corporate Social Responsibility, and Intellectual Capital Disclosure. Accounting and Finance Research, 6(4), 164 – 180. https://doi.org/10.5430/afr.v6n4p164.

Mondal, A. & Ghosh, S.K. (2012). Intellectual Capital and Financial Performance of Indian Banks. Journal of Intellectual Capital, 13 (4), 515 - 530. https://doi.org/10.1108/14691931211276115.

Nasfi. (2019). Analisis Kinerja Keuangan Bank Pembiayaan Rakyat Syariah (BPRS) Sumatera Barat. Jurnal Tamwil, 5(2), 131 – 150.

Nazir, M.I., Tan, Y., & Nazir, M. R. (2020). Intellectual capital performance in the financial sector: Evidence from China, Hong Kong, and Taiwan. International Journal of Finance & Economics, 26(4), 1 - 21. https://doi.org/10.1002/ijfe.2110.

Nurhikmah, S., & Rahim, R. (2021).Pengaruh Faktor Keuangan dan Non Keuangan terhadap Financial Sustainability Ratio Perbankan. Journal of Management and Business Review, 18(1), 25 – 47. https://doi.org/10.34149/jmbr.v18i1.214.

Olarewaju, O.M., & Msomi, T.S. (2021). Intellectual capital and financial performance of South African development community’s general insurance companies. Heliyon, 7(4), 1 - 10. https://doi.org/10.1016/j.heliyon.2021.e06712.

Pan, X., Sha, J., Zhang, H., & Ke, W. (2014). Relationship between corporate social responsibility and financial performance in the mineral industry: Evidence from Chinese mineral firms. Sustainability, 6, 4077 - 4101. https://doi.org/10.3390/su6074077.

Pedersen, K.W., Pharo, E., Peterson, C., & Clark, G.A. (2017). Wheels of Change in Higher Education: a Collaborative, Multi-Stakeholder Project as a Vehicle for Sustainability Education. International Journal of Sustainability in Higher Education, 18(2), 171 - 184. doi: 10.1108/IJSHE-10-2015-0172.

Pham, D.C., Do, T.N.A., Doan, T.N., & Hong, T.X. (2021). The impact of sustainability practices on financial performance: empirical evidence from Sweden. Cogent Business & Management, 8(1), 1 - 19.

Pulic, A. (1998). Measuring the Performance of Intellectual Potential in Knowledge Economy, The 2nd McMaster World Congress On Measuring And Managing Intellectual Capital, Austrian.

Robiyanto, R., Putra, A. R., &Lako, A. (2019). The Effect of Corporate Governance and Intellectual Capital toward Financial Performance and Firm Value of Socially Responsible Firms. Contaduría y Administración, 66(1), 1 - 12. doi:10.22201/fca.24488410e.2021.2489.

Rianasari, S., & Pangestuti, I.R.D. (2016). Analisis Rasio Kinerja Keuangan terhadap Financial Sustainability Bank Perkreditan Rakyat (BPR) di Jawa Tengah (Periode 2010 – 2014). Diponegoro Journal of Management, 5(2), 1 – 15.

Saputri, K.O. (2019). Kinerja Keuangan terhadap Kemampuan Berkelanjutan Perusahaan. Jurnal Riset Akuntansi Kontemporer, 11(1), 24 – 32.

Sarstedt, M., Ringle, C.M. & Hair, J.F. (2017). Partial least squares structural equation modeling. in Homburg, C., Klarmann, M. and Vomberg, A. (Eds), Handbook of Market Research, Springer, Heidelberg. http://dx.doi.org/10.1007/978-3-319-05542-8_15-1.

Sarwono, A.E., & Sunarko, M.R. (2015). Pengaruh Variabel Rasio Keuangan terhadap Financial Sustainability Ratio pada Bank Campuran Periode 2011 – 2013. Eksplorasi, 27(2), 540– 549.

Secundo, G., Ndou, V., Vecchio, P.D., & Pascale, G.D. (2020). Sustainable development, intellectual capital, and technology policies: A structured literature review and future research agenda. Technological Forecasting and Social Change, 153, 1 - 21. https://doi.org/10.1016/j.techfore.2020.119917.

Sheikh, H. I., & Wepukhulu, J. M. (2019). Effect of intellectual capital efficiency on the financial sustainability of Savings and Credit Cooperative Societies in Nairobi County, Kenya. International Academic Journal of Economics and Finance, 3(4), 16 – 31.

Sholikah, A.M., & Miranti, T. (2021). Factors Influence Financial Sustainability Banking in Indonesia. Al – Tijary: Jurnal Ekonomi dan Bisnis Islam, 6(1), 41 – 50. http://dx.doi.org/10.21093/at.v6i1.2497.

Siswanti, I., & Cahaya, Y.F.(2021). Sustainable Business Islamic Banks in Indonesia. Accounting, 7(2), 299 – 310. doi: 10.5267/j.ac.2020.11.023.

Siswanti, I., & Sukoharsono, E.G. (2019). Intellectual Capital and Financial Performance of Islamic Banks in Indonesia. Institutions and Economies, 11(4), 31 - 49.

Soetanto, T., & Liem, P.F. (2019). Intellectual capital in Indonesia: dynamic panel approach. Journal of Asia Business Studies, 13(2), 240 - 262. https://doi.org/10.1108/JABS-02-2018-0059.

Soewarno, N., & Tjahjadi, B. (2020). Measures that matter: an empirical investigation of intellectual capital and financial performance of banking firms in Indonesia. Journal of Intellectual Capital, 21(6), 1085 - 1106. https://doi.org/10.1108/JIC-09-2019-0225.

Sofia, I.P., Sembel, R., Wardhani, R., & Herawaty, V. (2021). Company Sustainability, Enterprise Risk Management, Innovation, And Intellectual Capital Efficiency: Evidence From Indonesia. International Journal of Business, Economics, and Law, 24(2), 58 – 66.

Supriyadi. (2013). Konsep dan Model Pengukuran Corporate Sustainability: Sebuah Kajian Literatur. STAR-Study & Accounting Research, 10(3), 13 – 28.

Tristiningtyas, V., & Mutaher, O. (2013). Analisis Faktor – Faktor yang Mempengaruhi Kinerja Keuangan pada Bank Umum Syariah di Indonesia. Jurnal Akuntansi Indonesia, 3(2), 131 – 145.

Ullah, A., Pinglu, C., Ullah, S., Qian, N., & Zaman, M. (2021). Impact of intellectual capital efficiency on financial stability in banks: Insights from an emerging economy. International Journal Of Finance & Economics, 1 – 24. https://doi.org/10.1002/ijfe.2512.

Wahyuni, S., & Fakhruddin, I. (2014). Analisis Faktor-Faktor yang Mempengaruhi Sustainability Ratio Perbankan Syariah di Indonesia. Seminar Nasional dan The 1st Call For Syariah Paper (SANCALL) 2014. http://hdl.handle.net/11617/4721.

Weber, O. (2016). The Impact of Green Banking Guidelines on the Sustainability Performance of Banks. Policy Brief, 79, 1 – 9.

Weqar, F., & Haque, S. M. I. (2020). Intellectual Capital and Corporate Financial Performance in India’s Central Public Sector Enterprises. International Journal of Learning and Intellectual Capital, 17(1), 77 – 97. http://dx.doi.org/10.1504/IJLIC.2020.105323.

Wijaya, M. H., & Amanah, L. (2017). Pengaruh Intellectual Capital terhadap Kinerja Perusahaan Otomotif di Bursa Efek Indonesia. Jurnal Ilmu dan Riset Akuntansi, 6(1), 295 - 311.

Wijayani, D. R. (2017). Pengaruh Intellectual Capital terhadap Kinerja Keuangan Perusahaan Publik di Indonesia (Studi Empiris pada Perusahaan Manufaktur di BEI 2012-2014). Jurnal Riset Akuntasi dan Bisnis Airlangga, 2(1), 97 - 116. http://dx.doi.org/10.31093/jraba.v2i1.23.

Xu, J., & Li, J. (2022). The interrelationship between intellectual capital and firm performance: evidence from China's manufacturing sector. Journal of Intellectual Capital, 23(2), 313 - 341. https://doi.org/10.1108/JIC-08-2019-0189.

Xu, J., & Liu, F. (2020). The Impact of Intellectual Capital on Firm Performance: A Modified and Extended VAIC Model. Journal of Competitiveness, 12(1), 161 - 176. https://doi.org/10.7441/joc.2020.01.10.

Xu, J., & Wang, B. (2018). Intellectual Capital, Financial Performance and Companies’ Sustainable Growth: Evidence from the Korean Manufacturing Industry. Sustainability, 10(12), 1 - 17. https://doi.org/10.3390/su10124651.

Yilmaz, I. (2021). Sustainability and financial performance relationship: international evidence. World Journal of Entrepreneurship, Management, and Sustainable Development, 17(3), 537 - 549. https://doi.org/10.1108/WJEMSD-10-2020-0133.

Yusliza, M. Y., Yong, J. Y., Tanveer, M. I., Ramayah, T., Juhari, N. F., & Muhammad, Z. (2019). A structural model of the impact of green intellectual capital on sustainable performance, Journal of Cleaner Production, 249, 1-42. https://doi.org/10.1016/j.jclepro.2019.119334.

DOI: https://doi.org/10.15408/sjie.v11i2.25813 Abstract - 0 PDF - 0


  • There are currently no refbacks.

View My Stats