Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Cultural Capital Based on Agency Theory (Study at Village Credit Institutions in Bali)

Author(s): Ida Bagus Rai Dharmawijaya Mantra, I Gusti BagusWiksuana, I Wayan Ramantha, Ida Bagus Panji Sedana

This study aims to review 13 literatures to obtain an overview of the organizational structure and cultural capital which is the development of the theory of intellectual capital (intellectual capital) in relation to credit risk, efficiency and financial performance. The novelty of this researches where cultural capital which is the development of intellectual capital is measured by the collective culture and organizational culture typical of VCI based on agency theory. Like other financial institutions, VCI operations cannot be separated from risks, including credit risk, which can affect the efficiency and financial performance of the VCI. The results show that for VCI management, this theory does not necessarily apply. Supervisor, VCI administrators and employees come from local customary villages who are generally very attached to their interests as citizens based on collective cultural thinking. Besides that, with its unique organizational structure, wherethe customary Bendesa directly acts as chairman of the supervisory board, it will color the VCI organizational culture which complements the spirit of the collective culture to achieve the VCI goals.

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