International Congress on Eurasian Economies

International Conference on Eurasian Economies

9-11 September 2015 – Kazan, RUSSIA

Paper detail

Paper ID : 1192
Status : Paper published
Language : English
Topic : Finance and Financial Crises
Presenter: Prof. Dr. Euphrasia Susy Suhendra
Session : 3A Finance

The Influence of Intellectual Capital on Firm Value towards Manufacturing Performance in Indonesia
The Influence of Intellectual Capital on Firm Value towards Manufacturing Performance in Indonesia

Abstract

The aim of this study is to analyse the influence of intellectual capital on firm value through firm performance (profitability, productivity, market valuation and growth). Intellectual capital is measured by using a Value Added Intellectual Coefficient (VAIC™). Firm value is measured by Tobin's Q. The financial performance consists of Return on assets (ROA), Asset turn over (ATO), Market to Book Value (MB) and Earnings per Share (EPS). Data from this study was obtained from financial statements and annual reports of manufacturing companies that are taken from the Indonesia Stock Exchange. The sample of this study is manufacturing companies listed on the Indonesia Stock Exchange during the year of 2011-2013 for 37 companies. The types of data used are secondary data in the form of annual reports by the manufacturing companies. Empirical analysis is conducted by using Structural Equation Modelling (SEM). The results of this study indicate that Intellectual capital has a significant effect on profitability, market valuation and growth. Intellectual capital does not significantly affect productivity and firm value. Market valuation significantly affects the firm value. Profitability, productivity and growth do not significantly affect firm value. Furthermore, Intellectual capital which is intervened by the firm performance has a positive effect on firm value.

JEL codes: C52, D46, G32

Suhendra, Euphrasia Susy (2015). "The Influence of Intellectual Capital on Firm Value towards Manufacturing Performance in Indonesia" in Proceedings of International Conference of Eurasian Economies 2015, pp.54-61, Kazan, RUSSIA.

DOI: https://doi.org/10.36880/C06.01192

Full paper in PDF format.

Session 3A: Finance

Eurasian Economists Association Istanbul Beykent University Kazan Federal University Kyrgyz-Turkish Manas University TIKA Turkish Central Bank