Intellectual Capital and Board Gender Diversity in Predicting Islamic Banks' Financial Performance: Evidence from Indonesia
Keywords:
Intellectual Capital, ROGIC, Gender Diversity, Women DirectorsAbstract
Indonesia is a country with the Muslims majority population. However, the total assets of Islamic banking are still under 10% of the total assets of the banking industry in Indonesia. Several previous studies have examined the effect of intellectual capital and board gender diversity on the financial performance of Islamic banking. However, it is still rare to find research that examines the influence of both on the future financial performance of Islamic banking. This study aims to test the ability of intellectual capital and board gender diversity in predicting the future financial performance of Islamic banking in Indonesia. This research is a descriptive quantitative study that uses panel data to analyse the hypothesis. A total of 462 data from 11 Sharia commercial banks registered with the Financial Services Authority (OJK) in the period 2017-2022 were obtained and used in this study. The results of this study indicate that intellectual capital can predict the present and future financial performance of Islamic banking. However, board gender diversity cannot predict the financial performance of Islamic banking, both in the present and the future. The results of this study can be a consideration for Islamic banking as an industry player and the Indonesian government as a regulator to consider the quota of women in the company board of directors.
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