Exploring the relationship between intellectual capital and maqasid sharia-based performance: the moderating role of sharia governance

Abstract

Purpose The purpose of this study is to examine the relationship between intellectual capital, sharia governance and Islamic bank performance based on the maqasid sharia index, as well as the moderating effect of sharia governance on the relationship between intellectual capital and maqasid sharia index. Design/methodology/approach Dynamic panel regression is used with the two-step generalised method of moments with data from the Bankscope database for 2014–2018. Findings The results show that higher intellectual capital efficiency improves Islamic bank performance based on maqasid sharia. Larger board sizes are also found to improve Islamic bank performance. By contrast, higher sharia supervisory board quality and larger independent boards can reduce Islamic bank performance. In the moderating relationship, sharia governance is proven to moderate the relationship between intellectual capital and Islamic bank performance. Research limitations/implications This study used a sample that is restricted to Islamic bank and only used value-added intellectual coefficient to measure intellectual capital. Thirdly, the quality of the sharia supervisory board only involves the presence, size, expertise and doctoral qualification of the sharia supervisory board. Originality/value This research: analyses the relationship between intellectual capital, sharia governance and Islamic bank performance in one research framework; uses maqasid sharia index-based Islamic bank performance benchmarks; and examines the moderating effect of sharia governance on the relationship between intellectual capital and maqasid sharia index.

Evidence of Moderation Maqashid Sharia : Financial Performance, Islamic Social Reporting and The Value of the Company

“…So from the test results, it can be concluded that the maqashid sharia index is included in the predictor moderator variable, which can affect firm value but cannot affect the relationship between ROA and firm value. The results of this study support the results of Prasojo et al (2022), which explain that ROA does not affect firm value, with maqashid sharia as a moderating variable, so the H3 hypothesis is rejected.…”

A systematic literature review of current understanding and future scope on Green Intellectual Capital

“…Second phase started from 2001 to 2010 and was immensely geared towards enlarging models to gauge, report and administer Intellectual Capital (Bontis, 2001;Guthrie, 2001;Brennan, 2001;Andriessen, 2004;Chen, Zhu & Xie, 2004;Striukova, Unerman & Guthrie, 2008;Dumay, 2009) in addition to assessing its role in organisations bottom line and worth (Chen, Cheng & Hwang, 2005;Tseng and Goo, 2005;Bharathi, 2008;Sharabat,i Jawad & Bontis, 2010). Third phase spanned the years 2011 to 2022 and was majorly oriented towards assessing the consequential effect of Intellectual Capital on performance (Joshi, Cahill, Sidhu & Kansal, 2013;Lu, Wang & Kweh, 2014;Xu and Wang, 2018;Asiaei, Jusoh & Bontis, 2018;Chatterjee, Chaudhuri, Thrassou & Sakka, 2021;Xu and Li, 2020;Campos, Dias, Teixeira & Correia, 2022;Prasojo, Yadiati, Fitrijanti & Sueb, 2022;Bataineh, Abbadi, Alabood & Alkurdi, 2022), competitive strength (Jardon & Martos, 2012;Yaseen, Dajani & Hasan, 2016;Jain et al, 2017;Niwash, Cek & Eyupoglu, 2022), innovative strength (Han & Li, 2015), knowledge governing practices (Kianto, Ritala, Spender & Vanhala, 2014), corporate governance (Hidalgo, García-Meca & Martínez, 2011;Soriya & Kumar, 2022) and sustainability (López-Gamero, Zaragoza Sáez, Claver Cortés & Molina Azorín ---, 2011; Massaro, Dumay, Garlatti & Dal Mas, 2018) on diverse sectors. Yet the study of IC so far has not been sufficient in analysing its ecological aspects and thus arose the need for the study of Green Intellectual Capital.…”

Human Capital, Quality of Sharia Supervisory Board and Maqasid Shariah Based Performance: Cross Country Evidence

“…Islamic bank performance depends on internal factors, one of which is HC (Akkas & Asutay, 2022;Aslam & Haron, 2021). More efficient HC and quality SSB support contribute to creating added value for Islamic banks to achieve maqasid sharia-based performance (Prasojo et al, 2022b).…”