DOES INTELLECTUAL CAPITAL CAN IMPROVE THE SHARIA BANKING FINANCIAL PERFORMANCE IN INDONESIA?

The purpose of this study was to examine the effect of Intellectual Capital on Company Financial Performance. The population in this study is the Sharia Banking company Sharia Commercial Bank group in Indonesia which is registered with the Financial Services Authority and publishes annual publication reports with a research period of 2015 to 2018. The sample in this study was selected using a purposive sampling method with predetermined criteria so that 11 companies could be collected with a total of 44 financial statements. The data analysis technique used in this study is multiple linear regression analysis. Results show that Value Added Capital (VACA) and Value-Added Human Capital (VAHU) has an effect on the financial performance of the company. Structural Capital Value Added (STVA) hasn t an effect on the financial performance of the company. While simultaneously have a significant effect on the company s financial performance. The results shown by adjusted R square are 0.887 which means it can be stated that Value Added Capital (VACA), Value Added Human Capital (VAHU), and Structural Capital Value Added (STVA) affect the company s financial performance by 70,2% while the remaining 29,8% is explained by other factors not included in this regression model.