An Exploration Study on the Relationship between Intellectual Capital, Earning Management and Banking Financial Performance in Indonesia

Nisrul Irawati, Lisa Marlina, Friska Sipayung, Isfenti Sadalia

2018

Abstract

The purpose of this research is to explore the intellectual capital and earning management of the Indonesian banking sector and discusses their impact on the banks’ financial performance. In measure the intellectual capital applies the VAIC TM method. For measuring earning management, the study use discretionary accrual in Modified Jones Model. And for measuring the financial performance, EPS (Earning Per Share) ratio is used. In order to analyze, this research use the data of 29 Indonesian banks for the period 2012- 2016. Initial data analyses, this research were conducted with PLS-SEM. The result of this study found that there is no relationship between Intellectual Capital and Earning Management. Then, there is a positive significant relationship between Intellectual Capital and Financial Performance. And there is a positive significant relationship between Financial Performance and Earning Management. In practical banks should concentrate especially in upgrading their human capital and increasing their structural capital.

Paper Citation

in Harvard Style

Irawati N., Marlina L., Sipayung F. and Sadalia I. (2018). An Exploration Study on the Relationship between Intellectual Capital, Earning Management and Banking Financial Performance in Indonesia.In Proceedings of the International Conference of Science, Technology, Engineering, Environmental and Ramification Researches - Volume 1: ICOSTEERR, ISBN 978-989-758-449-7, pages 1342-1346. DOI: 10.5220/0010074113421346

in Bibtex Style

@conference{icosteerr18,
author={Nisrul Irawati and Lisa Marlina and Friska Sipayung and Isfenti Sadalia},
title={An Exploration Study on the Relationship between Intellectual Capital, Earning Management and Banking Financial Performance in Indonesia},
booktitle={Proceedings of the International Conference of Science, Technology, Engineering, Environmental and Ramification Researches - Volume 1: ICOSTEERR,},
year={2018},
pages={1342-1346},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010074113421346},
isbn={978-989-758-449-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Conference of Science, Technology, Engineering, Environmental and Ramification Researches - Volume 1: ICOSTEERR,
TI - An Exploration Study on the Relationship between Intellectual Capital, Earning Management and Banking Financial Performance in Indonesia
SN - 978-989-758-449-7
AU - Irawati N.
AU - Marlina L.
AU - Sipayung F.
AU - Sadalia I.
PY - 2018
SP - 1342
EP - 1346
DO - 10.5220/0010074113421346