THE INFLUENCE OF INTELLECTUAL CAPITAL AND MARKET SHARE ON BANK EFFICIENCY
Bank efficiency is an important aspect in the development of banks in Indonesia. Several previous literatures indicate differences in research results on the effect of intellectual capital and market share on bank efficiency. This research aims to find the influence of intellectual capital and market share on bank efficiency in developed countries, emerging markets, and Indonesia. This research uses descriptive methods and causality. The unit of analysis in this study was commercial banks, thus the population of this study was commercial banks, both conventional commercial banks and Syariah commercial banks. In this study, the population and sample are all commercial banks registered with the Financial Services Authority (OJK) between the 2006-2017 period, which are categorized into the group of state-owned banks, foreign exchange national private commercial banks (BUSN Devisa), and non-foreign exchange national private banks (BUSN). Non-Foreign Exchange), Mixed Banks, Regional Development Banks (BPD), and Foreign Banks. The results showed that the market share of third-party funds significantly affected bank efficiency in a negative direction. Credit market share has a significant effect on bank efficiency in a positive direction. Intellectual capital has a significant effect on bank efficiency in a negative direction.
Intellectual Capital, Market share, Bank Efficiency. JEL Classification: E44, G24, O34