Intellectual Capital, Foreign and Female Executives in the Profitability of Indonesia’s Banks

  • Saarce Elsye Hatane Petra Christian University
  • Felicia Prayogo Wibowo Petra Christian University
  • Hendri Kwistianus Petra Christian University
  • Hatane Semuel Petra Christian University
Keywords: Intellectual capital, Foreign Directors, Female Directors, Profitability, Bank


In order to produce profits for Indonesian banking firms, this study is to investigate the qualities of the board of directors as leaders in business management and their capacity to handle intellectual capital. The observation period was in 2016-2020. The observed characteristic of the board of directors is the role of foreign directors and female directors. The results of the study show that foreign directors reduce Return on Assets. It seems that the domestic boards of banking companies in Indonesia have a better understanding and control of market conditions in Indonesia so that they are able to increase bank profitability. Similarly, female directors who excel at managing asset banks in Indonesia. Managerial banks in Indonesia, on the other hand, are able to manage their intellectual capital to maximize profits, both through asset and equity management. This study contributes to the validation of the upper-echelon theory, which demonstrates the function of top management teams in firm management.

Author Biographies

Saarce Elsye Hatane, Petra Christian University

SCOPUS ID: 57208086781, SINTA ID: 26889, GS ID: kKnF37QAAAAJ&hl

Felicia Prayogo Wibowo, Petra Christian University

Business Accounting Program, Petra Christian University

Hendri Kwistianus, Petra Christian University

Business Accounting Program, Petra Christian University. SCOPUS ID: 58002953200, SINTA ID: 6782692, GS ID: YDTHPu0AAAAJ&hl

Hatane Semuel, Petra Christian University

Hatane Semuel is Petra Christian University's active lecturer in Master of Management Program; SCOPUS ID: 57201647012, SINTA ID: 5978106, GS ID: uSA4vUUAAAAJ


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How to Cite
Hatane, S. E., Wibowo, F. P., Kwistianus, H., & Semuel, H. (2024). Intellectual Capital, Foreign and Female Executives in the Profitability of Indonesia’s Banks. International Journal of Organizational Behavior and Policy, 3(1), 15-26.

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