The Role of Human Capital on the Performance of Islamic Banks in Indonesia, Malaysia, and Thailand

Abstract

This study investigates the relationship between human capital and the performance of Islamic banks in Indonesia, Malaysia, and Thailand. Our investigations collect data that we process and accumulate nationally from all Islamic banks listed on the stock exchange and report annual financial statements in Indonesia, Malaysia, and Thailand. Sourced from the financial statements of Islamic banks in Indonesia, Malaysia and Thailand, we investigated by accumulating investment in education and employee training made by Islamic banks, employee health investments made and reported by Islamic banks, and Performance of Islamic Banks in the period 1990 - 2020. We use time-series data and perform country-by-country estimates, which will be compared and conclusions drawn from the results of our investigations. To investigate the influence of health investment, education investment and performance of Islamic banks in Indonesia, Malaysia and Thailand. We used vector autoregressive analysis. After estimating the vector autoregressive in Islamic Commercial Banks and or Sharia Commercial Bank embryos in Malaysia, Thailand, and Indonesia. It can be concluded that investment in human resources in the form of investment in health and investment in education has a mutually reinforcing effect indicated by the direction of the positive influence relationship when each variable changes and responds to each other. It is in accordance with the theory of human capital, which states that human capital positively affects work performance.