INTELLECTUAL CAPITAL ON FINANCIAL PERFORMANCE AND FIRM VALUE OF BANK SECTOR COMPANIES LISTED AT INDONESIA STOCK EXCHANGE - IN PERIOD OF 2008-2012

Sep 20, 2026

Uploaded by Jasmine

Study examines how intellectual capital affects financial performance and firm value for bank sector companies listed on the Indonesia Stock Exchange during 2008–2012. Audited financial statements and historical stock price data from 130 qualifying sampled companies support the analysis. Generalized Structured Component Analysis is applied to test relationships. Findings show intellectual capital significantly influences financial performance, and intellectual capital also significantly impacts firm value.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages11

Reading Time28 min

AccessFree to download

Abstract

Keywords

Background and rationale

Research context and variables

Prior studies and supporting evidence

Methods and measurement approach

Findings and implications

RJOAS, 4(76), April 2018 DOI [https://doi.org/10.18551/rjoas.2018-04.13](https://doi.org/10.18551/rjoas.2018-04.13) INTELLECTUAL CAPITAL ON FINANCIAL PERFORMANCE AND FIRM VALUE OF BANK SECTOR COMPANIES LISTED AT INDONESIA STOCK EXCHANGE IN PERIOD OF 2008-2012 Arifin Jauhar Department of Business Administration, College of Administrative Sciences, Tabalong , Indonesia E-mail: [j](jauhar58@yahoo.com)[auhar58@yahoo.com](jauhar58@yahoo.com) ABSTRACT This study is aimed to the influence of Intellectual Capital on Financial Performance and Firm Value of bank sector companies listed at Jakarta Indonesia Stock Exchange in period 2008- 2012. This unit data is represented by the audited company's financial statements and historical data of stock prices in Indonesia Stock Exchange. Financial statement data and historical data of the company's stock price used are from the year of 2008 to 2012. Companies sampled in the study only companies which meet the sampling criteria as 130 companies. Data analysis used in this study is Generalized Structured Component Analysis. Results of research indicate that Intellectual Capital significantly influences Financial Performance, and Intellectual Capital significantly influences firm value. KEY WORDS Financial performance, firm value, Intellectual capital, Indonesia. The era of global economy challenges companies to be more competitive to lead to knowledge-based resources as a major factor in maintaining a competitive advantage (Kiong and Lean,) . With the advent of the knowledge-based economy, intellectual capital compared to physical and financial capital becomes a major factor in creating corporate value and maintain competitive advantage (Al-Musalli and Ku-Ismail, 2012) . The emergence of “new economy” that is principally driven by developments in information technology and science has also sparked growing interest in the disclosure of intellectual capital (Petty and Guthrie 2000, Bontis 2001) . The entry of foreign companies into the Indonesian market demands domestic enterprises to further improve the value and performance to face increasing competition. In the improvement process, companies need relevant information on the measured elements not only tangible assets, but also intangible assets in order to disclose the value and performance. In addition to improving the disclosure of financial statements and the disclosure of intellectual capital, a company also needs to carry out the implementation and management of good corporate governance. The acknowledgement related to the influence of intellectual capital on the creation of value and competitive advantage of the company has increased, but an exact proportion for the intellectual capital has been still being developed. Pulic (2000) suggests an indirect measurement of the intellectual capital on the efficiency of the value added generated by the intellectual ability of the company (Value Added Intellectual Coefficient-VAIC) . In the developing countries, such as in Indonesia, the presence of banking industry becomes very important in the process of economic development. The focus of the selection sub-sector bank as the research object in this study was due to some reasons, namely (a) bank is a business sector that is “intellectually intensive” (Joshi et al, 2012); (b) bank also includes service sector, where customer service is very dependent on the intellect, mind, intelligence of the human capital; (c) bank is an institution that is known as risk-taking entity (van Oorschot, 2009); (d) bank in conducting its operational activities is more associated with risks as compared to manufacturing companies and other enterprises; and (e)banking is considered to have a high level of regulation as stipulated by the Regulations of Bank Indonesia. RJOAS, 4(76), April 2018 Similarly, a study conducted by Chen [et. al](et. al). (2005) . By using the model of Pulic (VAIC) to test the relationship between Intellectual Capita

FAQs

What is the study's main purpose regarding intellectual capital?

To assess the influence of intellectual capital on financial performance and firm value of listed bank sector companies during 2008–2012.

Which data and sample are used in the analysis?

The study uses audited financial statements and historical stock price data from 2008 to 2012, sampling 130 companies that meet the criteria.

How are the relationships analyzed and what are the results?

Generalized Structured Component Analysis is used. Intellectual capital significantly affects financial performance and also significantly affects firm value.

Sep 20, 2026

Uploaded by Jasmine