Effects of Intellectual Capital Disclosure, Return on Assets, on Firm Value, and Independent Board of Commissioner in Banking Sector: Agency Theory Perspective

Abstract

Objective: The purpose of this research is to test and analyze the influence of disclosure of intellectual capital, Return on Assets on firm value and the independent board of commissioners in moderating the influence of disclosure of intellectual capital, Return on Assets on firm value in Indonesia Banking Sector. Method: The data used in this research is secondary data from conventional banking listed on the Indonesian Stock Exchange in 2018-2022. In the relationship analysis among the variables, SPSS is the main program to use, and Moderating Regression Analysis was used to analyze this research. Results: We found that Intellectual Capital Disclosure has an influence on firm value, while Return on Assets has a positive influence on firm value. Furthermore, the independent board of commissioners can moderate the relationship between Return on Assets and firm value, while the independent board of commissioners can moderate the relationship between intellectual capital disclosure and firm value also. Conclusion: In a knowledge-based economy, intellectual capital is a regarded as an important source advantage. The disclosure of intellectual capital information made by a company is useful information for investors in deciding to invest in addition to other factors such as return on assets. So, these two factors can increase the company's value. Apart from that, the existence of an independent board of commissioners in carrying out its function as supervisor of the company's operational activities has been able to encourage management to disclose information that is useful for investors in deciding to invest.