Financial performance as mediation is influenced by diversification and intellectual capital on sustainability performance-Reference-Cited by-同舟云学术

Financial performance as mediation is influenced by diversification and intellectual capital on sustainability performance

Published:2023-05-06 Issue:3 Volume:12 Page:345-352
ISSN:2147-4478
Container-title:International Journal of Research in Business and Social Science (2147- 4478)
language:
Short-container-title:IJRBS

Author:

Jeandry Gregorius^ORCID,Fajriyanti Nurul^ORCID

Abstract

This study examines and analyzes diversification and intellectual capital on sustainability performance mediated by financial performance. This research was conducted at Sharia Commercial Banks (BUS) in Indonesia, registered with the Otoritas Jasa Keuangan (OJK) for 2011 - 2018, with a total sample of 10 Islamic banks that meet the criteria according to the sampling method used, namely purposive sampling. The data analysis technique used SEM-PLS with the help of WarpPLS 7.0 software. The results showed that intellectual capital and financial performance had a positive effect on sustainability performance, but diversification was not significant on sustainability performance. Financial performance can mediate the relationship between diversification and intellectual capital on sustainability performance. The VAF method calculates the mediating effect with financial performance results partially mediates because the VAF value is less than 80%.

Publisher

Center for Strategic Studies in Business and Finance SSBFNET

Subject

General Earth and Planetary Sciences,General Environmental Science

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