Positive contribution of the good corporate governance rating to stability and performance: evidence from Indonesia

The release of bank’s intellectual capital is one of the important elements of bank’s annual reports. Although it is not presented adequately in the annual reports, voluntary disclosure of bank’s intellectual capital relatively represents the response to the needs of greater information for the users. This research aims to see the influence of corporate governance on the intellectual capital disclosure based on a case study on private banks in Indonesia. The variables to be examined in the research include the Composition of Independent Commissioners as well as The Competence of Audit Committee and Risk Oversight Committee. The samples were taken using purposive sampling, considering particular criteria. As many as 62 banks are selected to be taken as research samples. The data were analyzed using multiple linear regression analysis method. The result of a partial test shows that the Composition of Independent Commissioners has a positive and significant influence on the intellectual capital disclosure; the Competence of Audit Committee has a positive and significant influence on the intellectual capital disclosure; and the Competence of Risk Oversight committee does not influence the intellectual capital disclosure. Meanwhile, the result of a simultaneous test shows that the Composition of Independent Commissioners, the Competence of Audit Committee, and the Competence of Risk Oversight Committee significantly influence the intellectual capital disclosure.

Employee engagement affects the Employer Commitment which has influence on the expression desired by someone in relation to their professional attitude, connecting the work with personal life for psychological, cognitive, emotional, and their personal feelings as a whole, so that employees engagement towards a company will drive the employees’ performance. This is proved by the previous studies, but they have not included individual factors as the force that forms employee engagement or organizational commitment, specifically because seeing how the consequences of employee engagement produced. In this study, the authors consider the influence of individual factors towards organizational commitment mediated by employee engagement, which distinguishes this study from the previous ones. The objectives of this study are: first, to discover how individual factors affect employee engagement; second, to find out how employee engagement affects Organizational Commitment of employees; Third, to discover how individual factors affect organizational commitment. This study is conducted among the respondents all of whom are employees within MICE industry in Indonesia using questionnaire. Data analysis in was performed this study using Structural Equation Modeling (SEM) method. The results of this study show that high individual factors will form high employee engagement, high employee engagement will form high organizational commitment, and high individual factors will form high organizational commitment. In this study, it is found that there is an influence of individual factors towards organizational commitment mediated by employee engagement.

This study investigates the impact of political instability, macroeconomic and bank-specific factors on the profitability of Islamic banks in the context of Yemen. The study used two common measures of profitability, namely, Return on Assets (ROA) and Return on Equity (ROE) as dependent variables. Seven key independent (internal and external) variables are also used. There are five fully-fledged Islamic banks (IBs) working in Yemen. The study selected only three out of five IBs due to the availability of data for the period ranging from 2010 to 2014. The descriptive and multiple regression analyses were done. The results of the study indicate that operating efficiency and financial risk have negative and significant relationships with ROA and ROE. The findings also show that capital adequacy has a negative and insignificant relationship with ROA and ROE. Furthermore, the study reveals that assets size (LogA), assets management, liquidity and deposits have a significant and positive impact on banks’ profitability. GDP, Inflation rate (IR) and Political instability have positive and significant impact on Yemeni banks’ profitability. Based on the best knowledge of the authors, this study is considered one of the first and pioneering studies that determine the factors affecting the profitability of Islamic banks of Yemen. Therefore, the study gives good insights for the policy makers, regulators and interested parties for enhancing the profitability of Islamic banks in Yemen.