The Effect of Intellectual Capital on Financial Performance (original) (raw)
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Indonesian Journal of Business and Entrepreneurship, 2019
The purpose of the research was to provide an examination of the impacts of the intellectual capital on the firms' financial performance that is focusing on profitability, productivity, and market value. It was conducted on manufacturing companies in Indonesia which were listed in Indonesian Stock Exchange (IDX). The samples of this research were 93 listed manufacturing companies with the total number of 465 firm-year observations in five years. VAIC method by Pulic was used in measuring the intellectual capital in this research. Based on VAIC approach, intellectual capital consisted of human capital (HCE), structural capital (SCE), and capital employed (CEE). There were ten regression models used to assess all the relationships of independent and dependent variables. The result showed that VAIC had significant relationship towards financial performance but not towards the market value of the companies. While in regards to each component, HCE was found to have no correlation towards both market value and financial performance. The SCE was found to have a negative significant relationship only towards the market value. Meanwhile, CEE was proved to have a significant relationship towards both market value and financial performance.
The Indonesian Accounting Review, 2013
The purpose of this study is to empirically examine the influence of intellectual capital proxied by human capital, structural capital, and physical capital which can affect the company's financial performances measured by return on equity (ROE), earning per share (EPS), and operational profit margin (OPM). The population of this research is companies listed in Indonesia Stock Exchange period 2007-2011 and meet the criteria for the samples in this study. The sample selection is using purposive sampling method and obtained 60 companies as the samples. The results are as follow: intellectual capital (VAICTM) significantly affects the financial performance of the return on equity (ROE) and operational profit margin (OPM) variables reinforced the company's modest size, while the intellectual capital (VAICTM) has no affect on earning per share (EPS).
Open Access Indonesia Journal of Social Sciences
The concept of intellectual capital has a goal that leads to the control and management of the company (Mouritsen et al., 2001) with the perspective of improving organizational performance, creating a competitive advantage of the company (Khalique et al., 2011) which can differentiate itself from competitors in today's modern economic era (Bhasin, 2008) which also leads to long-term profits (Jordão & de Almeida, 2017). The measurement of the impact of intellectual capital management that is most widely used is developed by (Pulic, 1998), VAICTM (Value Added Intellectual Coefficient) to measure the extent to which the company generates an added value based on the efficiency of intellectual capital that is supported and influenced by the relationship between value-added to physical capital, human capital and structural capital. This research is causal research that aims to analyze the causal relationship between the independent variable and the dependent variable. The independent ...
The Effect of Intellectual Capital on Financial Company: Empirical Study from Indonesia
Daengku: Journal of Humanities and Social Sciences Innovation
This study examines: 1) The Effect of Value-Added Capital Employed (VACA) on Financial Performance. 2) Effect of value-added human capital (VAHU) on financial performance 3) Effect of Structural Capital Value Added (STVA) on Financial Performance. The population of this study is manufacturing companies listed on the Indonesia Stock Exchange from 2018 to 2022. The number of companies studied was 41. The sampling technique used was purposive. The type of sample is obtained based on predetermined criteria. The data used is quantitative data obtained in the form of numbers that can be calculated by accessing the IDX.co.id site and the official website of each company. The data analysis technique used is multiple regression analysis. The study results show that: 1) Value Added Capital Employed (VACA) positively and significantly affects financial performance. 2) Value-added human capital (VAHU) has a positive and insignificant effect on financial performance. 3) Structural Capital Value ...
This research aims to know the influence of intellectual capital components towards company performance. The sample used in this research is company that categorized as knowledge-intensive industry based on classification of Knowledge-intensive Industry by Organization of Economic Co-operation and Development (OECD). Measurement of intellectual capital is using Value Added Intellectual Coefficients (VAIC) developed by Pulic (1998) that consist of its three components on measuring the efficiency on creating the value added that are Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE) and Capital Employed Efficiency (CEE). Otherwise, the company performance is measured by using Return on Assets (ROA), Market to Book Value (MtBV) and Employee Productivity (EP). This research also used Advertising Expenditure (AD) as the variable control. Sample used in this research obtained from the population of knowledge-intensive industry based companies listed in Indonesia Stock Exchange (IDX) from 2011-2013. There are 76 companies listed in Financial Sector and Trade, Services and Investments Sector becoming the samples of this research. The conclusion of this research is only EP that influenced by VAIC and HCE positively significant. Keywords: Intellectual Capital, Company Performance, VAIC, HCE, SCE, CEE, AD, ROA, MtBV, EP
Intellectual capital and financial performance 5
Today intellectual capital (IC) is most important intangible asset and reporting of its information has influenced on transparency of managements accountibility. The purpose of this study is to explore the relationship between intellectual capitals and financial performance in 150 Malaysian firms over the period 2000-2011, base on the concept of value added intellectual capital has been calculated. To determine financial performance three proxies have been used, earning per share (EPS) Return of capital equity (ROCE) and growth of annual sales (GS). Intellectual capital (human capital, relational capital and structural capital) have been calculated and analyzed. The technique of multiple regressions and panel data analysis has been used to predict the impact of IC on financial performance. Findings from the empirical analysis indicate that the relationships between intellectual capital and financial performance of Malaysian companies (profitability, and Growth in sales) are positive, significant and informative. The empirical findings suggest that exact managing and reporting of intellectual capital assets will create value to the organization.
Research in Applied Economics, 2014
This study aims to analyze the influence of intellectual capital components consisting of value added capital employed, value added human capital, and value added structural capital to financial performance and value of the firm, as well as financial performance to value of the public firm registered in Indonesia Stock Exchange. This study is concerned with companies registered in Indonesia Stock Exchange, by 158 samples of 464 firms which are registered in 2012.Data is analyzed by using Path Analysis Model by means of program AMOS version 18.The findings show that each of intellectual capital components consisting of value added capital employed and value added structural capital give positive and significant effect on capital performance and value of the firm. Although value added human capital gives positive effect, it does not significantly affect financial performance and value of the firm; then, financial performance affect positively and significantly value of the firm registered in Indonesia Stock Exchange. It can give signal to investors to invest in the firm in purpose to gain return. High and low rates of return which will be received by investors reflects value of the firm.
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.
Intellectual Capital and Corporate Financial Performance of Selected Listed Companies in Indonesia
2017
The main focus of this research is to investigate the relationship between intellectual capital (IC) and corporate financial performance of selected listed companies in Indonesia. Unlike financial and physical assets, intangible assets are difficult to emulate, which makes them a powerful source of competitive advantage. The study uses data from consumer goods firms listed on the Jakarta Stock Exchange. Pulic’s Value Added Intellectual Coefficient (VAIC) model is utilised as the efficiency measure of capital employed, both human and structural capital. The regression model explores the relationship between intellectual capital and its contribution to the financial performance of firms in both current and future years. The results reveal that intellectual capital does contribute to the financial performance, with the exception of revenue growth of consumer goods firms in Indonesia. Furthermore, findings suggest that future performance is also affected by the level of intellectual cap...
The Effect of Intellectual Capital (IC) on Financial Performance
Proceedings of the Sixth Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2020)
The research examines effect of Intellectual Capital (IC) on financial performance (financial sector listed, on Indonesian Stock Exchange). This study used method was the explanatory. The data source used is secondary data. This study used a purposive sampling technique. Population is all financial companies listed in the Indonesian Stock, Exchange in 2014-2018. The number of sample use are 340 samples (68 company in 5 years). Multiple linear regression is the analytical method used application of SPSS 16. The result indicated that an intellectual capital variable using HCE has a negative, and significant effect Return On Asset (ROA). The intellectual capital variable using SCE has a positive and significant effect Return On Asset (ROA). Intellectual capital variable using CEE has a positive and significant effect Return On Asset (ROA).