The role of third-party funds on the effect of intellectual capital and zakat performing ratio on firm performance in Islamic banks

Maya Novitasari*    -  Universitas PGRI Madiun, Indonesia
Richo Diana Aviyanti  -  Universitas PGRI Madiun, Indonesia
Wan Adiba Wan Ismail  -  Universitas Teknologi MARA, Malaysia

(*) Corresponding Author
DOI: 10.21580/jiafr.2022.4.2.11890

Supp. File(s): common.other common.other

Purpose - This study aimed to examine the effect of intellectual capital and zakat performing ratio on the firm performance of Islamic Banks with third-party funds as the moderating variable.

Method - This study included all Islamic Banks registered with the Financial Services Authority (OJK) from 2014 to 2020 which were selected using a purposive sampling method that included financial and annual reports, yielding 77 companies as samples. Data were obtained from the Indonesia Stock Exchange and tested using SPSS.

Result - The results showed that intellectual capital has a positive effect on ROA and ROE, while the zakat performing ratio has no effect on ROA and ROE. The results showed that third-party funds cannot moderate the effect of intellectual capital on firm performance, and third-party funds cannot moderate the effect of the zakat performing ratio on firm performance.

Implication - In order to improve firm performance, Islamic Banks in Indonesia must focus on factors that can increase customer and prospective customer trust in Islamic Banks.

Originality - This study used third-party funds as a moderating variable to complete the research gap on the effect of intellectual capital and the zakat performing ratio on firm performance.

Supplement Files

Keywords: intellectual capital; zakat performing ratio; third-party funds; ROA; ROE

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Journal of Islamic Accounting and Finance Research
Published by Department of Sharia Accounting, Faculty of Islamic Economics and Business, Universitas Islam Negeri Walisongo Semarang, Indonesia
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