Influence of Intellectual Capital and Corporate Social Responsibility on Company Financial Performance (Case Study on Indonesian Conventional Banking Listed in Indonesian Stock Exchange (IDX) on Period 2016-2020)

Prabowo, Puji; Sjaerodji, Yuda; Amalia, Friska; Savitri, Mila

doi:10.46254/EU05.20220545

Financial performance is an important indicator for holders and stakeholders to assess and make decisions for a company, one of which can be seen from the level of Return On Assets (ROA). The higher the ROA of a company, the better the company's performance in generating profits from its assets. The ROA condition of Indonesian Banking since 2016-2019 has increased which then fell in 2020.

This study aims to determine how the influence of Intellectual Capital and Corporate Social Responsibility (CSR) on conventional banking ROA either partially or simultaneously. The population of this study is the conventional banking companies listed on the Indonesia Stock Exchange for the 2016-2020 period as many as 41 companies. The number of samples taken was 25 conventional banks which were selected through purposive sampling method. The research method used is panel data regression analysis.

The results showed that Intellectual Capital and Corporate Social Responsibility simultaneously had a positive effect on conventional banking ROA. Partially VAHU and VACA have a significant effect on ROA,
while STVA and CSR have no significant effect on ROA in conventional banking.

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Influence of Intellectual Capital and Corporate Social Responsibility on Company Financial Performance (Case Study on Indonesian Conventional Banking Listed in Indonesian Stock Exchange (IDX) on Period 2016-2020)