Does Profitability Matter in the Relationship between Intellectual Capital and Firm Value? (original) (raw)
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The Role of Intellectual Capital as a Determinant of Firm Value
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The twofold purpose of this chapter is to provide a detailed literature review on the relationship between intellectual capital and firm value and to present an empirical study of this relationship in developing countries. The originality of this study lies in the use of the multilevel modeling method to analyze a large crosscountry data set of 12,331 firms from 26 countries. The efficiency of intellectual capital is measured with value-added intellectual coefficient. Market value, earnings quality, return on asset, and return on equity are employed as proxies of firm value and performance. Variance coefficient and random intercept models are estimated. The findings imply that the efficient management of intellectual capital increases the profitability of sample firms. However, no significant relationship is detected between intellectual capital and market value. These results indicate that intellectual capital increases firm profitability in developing countries. However, investors in these countries do not count intellectual capital in their valuation processes. Managers can increase their firms' profitability by efficient management of intellectual capital in developing countries.
The Effect of Intellectual Capital and Profitability on Firm Value
This research aims to determine the effect of intellectual capital and profitability on firm value in bank subsector companies listed on the Indonesia Stock Exchange from 2017 to 2021. The independent variable, namely intellectual capital, is measured by VAIC™ which is proxied by value added capital employed (VACA), value added human capital (VAHU), and structural capital value added (STVA), and profitability is proxied by ROE (return on equity). The dependent variable in this study is firm value as proxied by Tobin's Q. The data analysis technique used in this study was purposive sampling approach through the SPSS application. Form the result of research show there is no significant effect between intellectual capital toward firm value and there is a significant effect between profitability toward firm value.
Intellectual Capital and Firm Value: The Role of Financial Performance as Intervening Variable
Zenodo (CERN European Organization for Nuclear Research), 2022
This study aims to determine the effect of intellectual capital on firm value with financial performance as an intervening variable. This study is a quantitative study using related methods. The goal is for all commercial banks in Indonesia to be listed on the Indonesia Stock Exchange (IDX). The sampling used the purposive sampling method and resulted in 42 commercial banks in Indonesia. The data in this study is secondary data in the form of annual financial reports from 2017 to 2021. Path analysis is used with SPSS version 23 software for data analysis. The results showed that Intellectual Capital (VAICTM) had a significant effect on Financial Performance (ROE), Intellectual Capital (VAIC TM) had no significant effect on Firm Value (PER), Financial Performance (ROE) had a significant effect on Firm Value (PER), Intellectual capital (VAIC TM) has an indirect impact on firm value (PER) through financial performance (ROE) as an intervening variable.
Journal of International Conference Proceedings
The “objective of this study is to investigate the effect of profitability on firm value with intellectual capital as an intervening variable in manufacturing companies listed on the Indonesia Stock Exchange. The population are manufacturing companies that have published Corporate Governance Reports until 2018. However, some companies do not publish regularly during the observation period from 2012 to 2018. This study uses population requirements, companies do not issue Corporate Governance Reports for a maximum of 1 year. In order to obtain a population of 14 companies, all of which were used as research samples (saturated samples) with 98 observations. The analysis method used path analysis. The results demonstrated that profitability has a direct effect on firm value and profitability has an indirect effect on firm value. Intellectual capital acts as a mediating variable in this relationship. The increase in intellectual capital has an impact on increasing the value of the compan...
Intellectual Capital and Firm Performance: Applying a Modified Value-Added Coefficient
Proceedings of the Asia Pacific Business and Economics Conference (APBEC 2018), 2019
Knowledge-based industries base their business processes on intellectual capital. This study, conducted in Southeast Asian countries, examines the influence of intellectual capital on financial performance and market performance of a company in the knowledge-based industry. Intellectual capital is measured using the Modified Value Added Intellectual Coefficient (MVAIC). This study uses a oneyear time lag for MVAIC measurements and performance. The sample set consisted of 242 companies. The tests, performed using multiple regressions, analyzed MVAIC and MVAIC components consisting of Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE), Relational Capital Efficiency (RCE), and Capital Employed Efficiency (CEE). The research showed that intellectual capital (MVAIC) has a positive effect on financial and market performance. The components of MVAIC have different effects; for example, HCE has a positive effect on financial and market performance. This result proves that human capital plays an important role in a company in the knowledge-based industry. SCE has no effect on financial and market performance, RCE has no effect on financial and market performance, and CEE has a positive effect on financial performance and no effect on market performance.
International Journal of Globalisation and Small Business, 2017
This paper reexamines the relationships between intellectual capital, financial performance and market value. The exogenous variables examined include human capital efficiency, structural capital efficiency (SCE) and capital employment efficiency-all used as proxies for intellectual capital (IC). Return on assets (ROA) and market value (MV) are the endogenous variables. The following are the main findings. First, intellectual capital (IC) as represented by human capital and capital efficiency significantly affects financial performance that represented by ROA over the long term, whereas IC as represented by structural capital cannot adapt to changes in the business environments. Second, SCE has failed to moderate the relationship between IC with ROA. Third, IC as represented by human capital, structural capital and capital efficiency significantly affects MV. Finally, SCE is being able to moderate the relationships between IC and MV.
https://www.ijrrjournal.com/IJRR\_Vol.8\_Issue.8\_Aug2021/IJRR-Abstract086.html, 2021
The purpose of this study was to determine and examine the influence of factors that affect firm value. The factors include firm size, profitability, leverage, asset structure, liquidity, and company growth tested on companies listed in the Kompas 100 Stock Company and test whether the intellectual capital can moderate the relationship between the independent variable and the dependent variable. This research is causal research using secondary data. The population of this study is companies that are members of the Kompas 100 Stock Company listed on the Indonesia Stock Exchange from 2016 to 2019. The sampling method used is Purposive Sampling, so that there are 71 companies in 4 years of research so that 284 observations are obtained. The analytical technique used in this study is panel data regression analysis and tested for moderating with the Eviews ten software tool. The results of this study partially firm size and liquidity have a negative and insignificant effect on firm value; profitability, leverage, and firm growth have a positive and significant effect on firm value partially; and asset structure has a negative and significant effect on firm value. The intellectual capital variable does not moderate the relationship between firm size, profitability, leverage, asset structure, liquidity and firm growth on firm value.
Intellectual Capital, Firm Value, and Financial Performance
AFEBI Accounting Review, 2017
The ownership of intangible assets especially intellectual capital has becoming more important in this modern era where technology and knowledge have significant roles in company operating activities. The objective of this study is to examine the effect of intellectual capital on firm value and financial performance as intervening variable. The sample in this study is the banking sector listed in Indonesia Stock Exchange between 2011-2014 and 15 banks become samples in this study. The data was analyzed using the path analysis method with SPSS.The test result shows that intellectual capital has a positive effect on firm value, intellectual capital has a positive effect on financial performance, financial performance has a positive effect on firm value, and financial performance proved to intervene the relationship between intellectual capital and firm value.Keywords: Financial Performance, Firm Value, Intellectual Capital
The Dynamic Impact of Intellectual Capital on Firm Value: Evidence from Indonesia
Advances in economics, business and management research, 2023
Increasing business growth encourages companies to increase company achievements, prosper shareholders and grow company value. This study aims to show the effect of the mechanism of Institutional Ownership, Leverage, Profitability, Intellectual Capital, Current Ratio, and Earning Per Share on Firm Value and the effect of independent commissioners as a moderating variable. The study used secondary data from financial reports listed on the IDX for 2017-2021. Analysts data with multiple linear regression using SPSS 26. This test proves that profitability and leverage positively affect firm value. In contrast, institutional ownership, intellectual capital, current ratio, and earnings per share have a negative impact on firm value. Other results show that independent commissioners can moderate by weakening the link between leverage and company value. Still, independent commissioners cannot moderate the relationship between intellectual capital and the importance of financial sector companies listed on the Indonesia Stock Exchange for 2017-2021. This research contributes knowledge about the relationship between institutional ownership, leverage, intellectual capital, current ratio, earnings per share, and company value. Intellectual capital as a novelty is used to determine how influential intellectual capital is in increasing company value. In this study, an independent commissioner was used to influence the relationship between the independent variables and the dependent variable.
2020
The purposes of this study is to investigate the effect of intellectual capital, capital structure and growth of the company and its implications on value index formers LQ-45. The population of this study is all companies forming the LQ-45 index of the 2012 to 2018 period. Then, the sample of this study is only the companies that recorded consistent over the study period. This study uses regression analysis. The results indicate that intellectual capital proxied by variables VACA, VAHU and STVA partially have no significant effect on the capital structure, but have significant effect on the company's growth. Intellectual capital proxied by variables VACA, VAHU and STVA has significant effect on the value of the company; nevertheless, intellectual capital proxied by variables VAIC TM has no significant effect on the company’s capital structure, but has significant positive effect on the company's growth. On the other hand, the company's growth significantly influence the ...