Company Value is Influenced by Intellectual Capital, Funding Decisions, and Investment Decisions: Telecommunications Sub Sector Companies on the Indonesia Stock Exchange for The 2014- 2021 Period

Abstract

This study aims to determine the effect of Intellectual Capital, Funding Decisions, and Investment Decisions on Firm Value. The dependent variable in this study is Firm Value proxied by Tobin's Q model. The independent variables in this study are Intellectual Capital proxied by VAIC (Value Added Intellectual Capital), Funding Decisions proxied by DER (Debt to Equity Ratio), and Investment Decisions proxied by TAG (Total Asset Growth). The sample in this study are companies in the Telecommunications Sub-Sector for the 2014-2021 period. The sampling technique used purposive sampling, 4 companies were selected as research samples, from a total population of 10 companies. The results of the analysis show that Intellectual Capital (VAIC) has a positive and significant effect on firm value (Tobin's Q). This result illustrates that improving the quality of human resources in a company is very important and plays a role in efforts to increase firm value. Funding Decision (DER) has a negative and significant effect on firm value (Tobin's Q) this illustrates that investors are very sensitive to increased debt which can lead to debt default and increased bankruptcy risk. Investment decision (TAG) does not affect firm value (Tobin's Q). This situation illustrates that investment decisions as illustrated by asset growth are not a driving force for increasing firm value. This can be caused because if the asset is not productive, in the long term the accumulated value will be lower.