Abstract
This study aims to assess the effect of intellectual capital and its components on firm value and financial performance. Using sample firms on each sectors in the Indonesian Stock Exchange within 2014-2018 time period, intellectual capital is measured through VAIC™ and its components which are capital employed efficiency (CEE), human capital efficiency (HCE), and structural capital efficiency (SCE). While firm value and financial performance is measured through market-to-book value (MBV) and return on equity (ROE) respectively. Results of the study indicate that VAIC™ alone has a significant positive effect on MBV and ROE. CEE and HCE also have a positive significant effect on both MBV and ROE, but SCE has an insignificant but mixed effect with negative effect on MBV and positive effect on ROE. This result may be attributed to bad business cycle and major financial restatements within study period. Control variables such as firm size and leverage both have a positive effects with firm size has a significant effect while leverage is insignificant to firm value and financial performance.
| Original language | English |
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| Pages (from-to) | 294-302 |
| Number of pages | 9 |
| Journal | Economics Bulletin |
| Volume | 42 |
| Issue number | 2 |
| Publication status | Published - 2022 |