ANALYSIS ON THE INFLUENCE OF INTELLECTUAL CAPITAL TOWARD THE PROFITABILITY IN BANKING SECTOR LISTED IN INDONESIA STOCK EXCHANGE IN 2008 – 2012

Abstract

The objective of this study is to analyze the influence of intellectual capital toward company’s profitability as measured by Return on Asset (ROA) and Return on Equity (ROE) in Indonesia banking sector. The model that is used to measure intellectual capital was Pulic model by using Value Added Intellectual Coefficient (VAIC) which consist of Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE), and Capital Employed Efficiency (CEE). The population of this study are the banking companies listed by the Indonesia Stock Exchange (IDX) within the period of 2008-2012. Data were collected by using purposive sampling method and 26 companies were selected as the sample of this study. It is a quantitative research using secondary data taken from financial report. The data analysis method of this research is regression analysis using spss v20. The result shows: (1) Human Capital Efficiency (HCE) has no influence on ROE but it has positive influence on ROA. (2) Structural Capital Efficiency (SCE) and Capital Employed Efficiency (CEE) have a positive influence on ROA as well as on ROE. (3) From all the components of intellectual capital, CEE has the most dominant influence on ROA and ROE.