Presenters: Muhammad Zaki Naufal Zikri, Devi Narulitasari
Affiliation: Universitas Islam Negeri Raden Mas Said Surakarta
Room: 10
ICIES News- At the 4th International Conference on Islamic Economics Studies (ICIES) 2024, held in Room 10, Muhammad Zaki Naufal Zikri and Devi Narulitasari from Universitas Islam Negeri Raden Mas Said Surakarta presented their groundbreaking research titled “Intellectual Capital and Board Gender Diversity in Predicting Islamic Banks’ Financial Performance: Evidence from Indonesia.” Their study sheds light on the potential predictors of financial performance in Indonesia’s Islamic banking sector.
Despite Indonesia having a majority Muslim population, Islamic banking assets constitute less than 10% of the country’s total banking industry assets. Zikri and Narulitasari aimed to bridge the research gap by examining the combined impact of intellectual capital and board gender diversity on the financial performance of Islamic banks, focusing on their future financial outcomes.
This descriptive quantitative study utilized panel data analysis to test the hypothesis. Data from 462 records of 11 Sharia commercial banks registered with the Financial Services Authority (OJK) over the period 2017-2022 were analyzed. The study’s findings revealed that intellectual capital is a significant predictor of both present and future financial performance in Islamic banking. However, board gender diversity did not show a predictive ability for the financial performance of Islamic banks, either in the present or future.
These results provide critical insights for industry players and policymakers. The researchers highlighted the importance of intellectual capital in driving financial success in Islamic banking, suggesting that industry stakeholders should prioritize intellectual capital development. Meanwhile, the lack of predictive power of board gender diversity on financial performance calls for a reevaluation of gender quotas within the sector.
The presentation by Zikri and Narulitasari emphasized the need for strategic investments in intellectual capital to enhance the financial performance of Islamic banks. Their findings offer valuable guidance for both the Islamic banking industry and regulatory bodies in Indonesia, advocating for informed decisions regarding board composition and intellectual resource allocation to bolster the sector’s growth and stability.