The effect of ownership structure and intellectual capital on firm value with firm performance as an intervening variable

Noorlailie Soewarno, Achmad Hilal Akbar Ramadhan

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)

Abstract

This study aims to examine and analyse the effect of ownership structure and intellectual capital on firm value with the firm's performance as an intervening variable. The research sample was taken from the Indonesia Stock Exchange in 2016; it consisted of 302 firms that fulfilled the requirements of this research. Data were analysed by using the Structural Equation Modelling (SEM) analysis method with the SmartPLS 6.0 program. This study found empirical evidence that: (1) ownership structure can increase firm value, the implication being that the structures of foreign ownership, managerial ownership and institutional ownership have been able to directly increase the firm value; (2) intellectual capital is able to increase firm value, meaning that the Value Added Intellectual Coefficient (VAIC TM) can directly increase firm value; (3) ownership structure can improve firm performance, showing that foreign ownership structures, managerial ownership and institutional ownership can improve firm performance; (4) intellectual capital can improve firm performance, demonstrating that the Value Added Intellectual Coefficient (VAICTM) has been able to motivate firm performance; (5) firm performance can increase firm value, indicating that firm performance that is proxied by ROA and ROE can be improved; 6) firm performance fully mediates the effect of ownership structure on firm value; and (7) firm performance fully mediates the effect of intellectual capital on firm value.

Original languageEnglish
Pages (from-to)215-236
Number of pages22
JournalInternational Journal of Innovation, Creativity and Change
Volume10
Issue number12
Publication statusPublished - 2020

Keywords

  • Firm performance and firm value
  • Intellectual capital
  • Ownership structure

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