Does bank efficiency mediate the effect of intellectual capital on banking profitability in Indonesia?

This study aims to obtain empirical evidence regarding the role of bank efficiency in mediating the relationship between intellectual capital and profitability. The population in this study is the conventional banking sector which is listed on the Indonesia Stock Exchange from 2018 to 2022. Sampling was carried out by purposive sampling with a total sample of 115 observations. The analysis technique in this study uses SPSS (Statistical Package for the Social Sciences). The results of the analysis provide evidence that intellectual capital has a positive effect on banking profitability, intellectual capital has a positive effect on the efficiency of banking sector companies, bank efficiency has a positive effect on the profitability of banking sector companies, and bank efficiency mediates partially (complementary partial mediation) on the effect of intellectual capital on banking profitability.