Exploring the relationship between intellectual capital and firm value: Evidence from the Indonesian banking sector

This study aims to examine the effect of intellectual capital on firm value through corporate reputation as a mediating variable. Intellectual capital is proxied by human capital, structural capital, and customer capital. Using the resource-based theory and signaling theory, this paper analyzes how the corporate reputation will be mediating intellectual capital to firm value. This study used 340 observations of companies that received an excellent category on the Indonesian Corporate Image Award (IMAC) which was listed on the Indonesia Stock Exchange in 2013 to 2017 with Partial Least Square (PLS) test processed with warpPLS version 5.0 software. This study shows that the first human capital, structural capital, customer capital, and corporate reputation have a significant effect on firm value. Second, structural capital has a significant effect on corporate reputation. Third, corporate reputation variables are able to mediate the influence of intellectual capital proxied by human capital, structural capital, and customer capital on firm value. This study is the first empirical investigation on the contribution of Intellectual Capital in generating value for corporate reputation. Furthermore, the study contributes to the literature on the link between Intellectual Capital and firm value by examining a sample of firms no yet explored in prior research and this study also uses the cost-based approach.

Intellectual capital is a unique resource, categorized in intangible assets, so that not all companies can replicate it. Then the intellectual capital is a key resource for the company to create value added which will further creating a competitive advantage. Intellectual capital can be used as an indicator of the success of the company's financial performance. The company is able to manage and utilize the available resources, to create added value for the company so that the company's financial performance will increase. The purpose of this study was to determine the influence of intellectual capital consists of Human Capital, Structural Capital and Customer Capital on the company's financial performance is measured by using the approach of return on assets (ROA). Sample is the banking industry, which is listed on the Indonesian Stock Exchange (IDX) period 2008 - 2012 there were 22 companies. Data is the banking industry's financial statements in the period 2008-20012 are listed in Indonesia Stock Exchange (IDX). Using multiple regression analysis, intellectual Capital measurement model is using a model Pulic (1998) i.e. Value Added Intellectual Co-efficiency (VAICTM) as well as elements of Human Capital Value Added (VAHU), Customer Value added Capital (VACA), and Structural Capital Value Added (STVA). The results showed, partially (1) Human Capital (HC) effect on the financial performance of +2.085 regression coefficient, that means the higher Human Capital (HC), the better the financial performance. (2) Customer Capital (CC) effect on financial performance of + 3.568 regression coefficient. It means the higher Customer Capital, the better financial performance. (3) Structure Capital (SC) effect on the financial performance of positive regression coefficient 2.064. This means that the higher the Capital Structure, the higher the company's financial performance. Simultaneously measured by the Intellectual Capital Value added efficiency (VAICTM) consists of Human Capital (HC), Customer Capital (CC) and Structure Capital (SC) significant effect on financial performance as measured by return on assets (ROA) of: ROA = 0.089 + 0.112 (HC) + 1.501 (CC) + 0.708 (SC). The Intellectual Capital component Human Capital, Customer Capital and Structural Capital affect the company's financial performance 72.20 %, while the rest is influenced by other factors.

Purpose – This research is aimed to determine the effect of intellectual capital on firm value with corporate reputation and financial performance as mediating variables. Design/methodology/approach – This research uses secondary data obtained by using documentation method. The data source in this research is the financial reports of banking companies listed on the Indonesia Stock Exchange (IDX) for the 2020-2024 period and have score Corporate Image Index (CII) published by Frontier Consulting Group. The sample were selected using purposive sampling method, with a total sample of 39 data. Method used in this research is path analysis. Findings – The result of this research indicate that intellectual capital has a positive and significant effect on company reputation. Intellectual capital has a positive and significant effect on financial performance. Company reputation has a positive and significant effect on firm value. Financial performance has a positive and significant effect on firm value. Intellectual capital has a positive but not significant effect on firm value. Company reputation is able to mediate the effect of intellectual capital on firm value. Financial performance is able to mediate the effect of intellectual capital on firm value. Originality – This study integrates corporate reputation and financial performance as mediating variables in the relationship between intellectual capital and firm value, focusing on the banking sector in Indonesia that possesses a Corporate Image Index (CII) score. Keywords: Intellectual Capital, Firm Value, Company Reputation, Financial Performance Paper Type Research Result

This study aims to analyze and examine the effectof intellectual capitalon firm value through financial performance as an intervening variable . The value of the company as the dependent variable was measured using a Price to Book Value ( PBV), the financial performance as measured by proxy intervening variavel return on equity ( ROE) andearnings per share ( EPS). While intellectual capital is measured using value added intelctual capitalco efficient ( VAIC TM ) , which consists of three components : human capital, organizational capital , and relational or customer capital . The objectof the research is the entire banking companies listed in Indonesia Stock Exchange ( IDX) according to defined criteria. Thenumber of samples that meet the criteria of only 29 banks with the financial reporting period from 2010 to2013. Based on the analysis and hypothesis testing , this study showed the following results : (a) Intellectual capital has an influence on the financial performance proxied by return on equity (ROE ) and earnings per share( EPS), (b) the financial performance proxied by ROE and EPS positive effecton firm value( PBV), (c) Intellectual capital has no direct influenceon the value ofthe company , and(d) Intellectual capital effectindi rectlyon firm value( PBV) throughfinancial performancereturn on equity(ROE) andearnings per share(EPS). It explains that , intellectual capital owned perusahaa n , which include; human capital , organizational capital and relational capital o r integrated customer will result inbetter financial performance , will further enhance the company's overall value .

<p><em>Nowadays, intellectual capital become a very valuable asset on business. Intellectual Capital is an intangible asset that can create value added and competitive advatage for the company. The value added and competitive advatage will increase investors trust that can cause the raising value of the firm. Intellectual capital was measured by Vallue Added Intellectual Capital that consist of human capital, structural capital, and customer capital. The increasing profit was measured by return on asset (ROA). ROA indicates the company abilities to generate earnings (profitability). The firm value was measured by Tobin’s Q. The population in this research using a manufacturing company, especially infrastructure, utility, and transportation listed in Indonesia Stock Exchange during the period 2013-2015. Based on purposive sampling method, 19 samples were obtained, so there are 57 of observation data. The analysis techniques use are multiple linear regresion and path analysis. The result of this research showed that: (1)</em><em> Intellectual capital has a positive and significant influence toward return on assets. (2) Intellectual capital has a positive and significant influence toward firm value. (3) Return on assets has a positive and significant influance on firm value. (4) Intellectual capital has a positive and significant influence toward firm value through return on assets.</em><em></em></p><p><em> </em></p><p><strong><em>Keyword</em></strong><em> : </em><em>Intellectual Capital, Return on Asset, Firm Value, Tobin’s Q</em></p>

This paper investigates whether intellectual capital and its components (human, relational, innovation, and process capitals) have meaningful information on firm value. Full sample consists of 148 listed Turkish manufacturing firms over the period of 2005–2017. We show that our extended Ohlson models explain the substantial part of the unexplained variation in firm market values. Specifically, we find that higher levels of measures of human capital, relational capital, process capital, innovation capital, and overall intellectual capital are directly associated with higher stock prices. Furthermore, we find that intellectual capital and its components have lagged effects on market values of firms, and human capital has a moderating effect on the relationship between other intellectual capital components and firm market values. Our main finding still holds when we re-estimate our model by addressing potential endogeneity issues and alternative conditions. Based on our findings, we recommend firm managers to do convenient resources planning on these components to raise the firm’s value. Moreover, we recommend accounting standards setters to create a separate financial reporting standard, which includes detailed information on these components that are value-relevant in making business valuation decisions.

This paper investigates whether intellectual capital and its components (human, relational, innovation, and process capitals) have meaningful information on firm value. Full sample consists of 148 listed Turkish manufacturing firms over the period of 2005–2017. We show that our extended Ohlson models explain the substantial part of the unexplained variation in firm market values. Specifically, we find that higher levels of measures of human capital, relational capital, process capital, innovation capital, and overall intellectual capital are directly associated with higher stock prices. Furthermore, we find that intellectual capital and its components have lagged effects on market values of firms, and human capital has a moderating effect on the relationship between other intellectual capital components and firm market values. Our main finding still holds when we re-estimate our model by addressing potential endogeneity issues and alternative conditions. Based on our findings, we recommend firm managers to do convenient resources planning on these components to raise the firm’s value. Moreover, we recommend accounting standards setters to create a separate financial reporting standard, which includes detailed information on these components that are value-relevant in making business valuation decisions.

The purpose of this research is to analyze the direct impact of board structures on intellectual capital and firm value. The intellectual capital has a role as the mediating variable between corporate governance and firm value. Corporate governance is indicated by board size, gender diversity, and managerial ownership. Intellectual capital and firm value are measured by VAICTM and Tobin’s Q approximation respectively. Specifically, this study is conducted in the consumer goods sector during 2010-2015 in Indonesia and Malaysia. Total samples gathered from Indonesia Stock Exchange and Bursa Malaysia are 25 Indonesia companies (150 firm-year) and 106 Malaysia companies (636 firm-year). Partial least square is applied in order to examine the research model. The findings support all the proposed hypothesis, that corporate governance in both Indonesia and Malaysia have a positive significant impact on intellectual capital and value. In both countries, intellectual capital also has a positive significant impact. However, the main driver of significance on intellectual capital is different. Furthermore, intellectual capital in Malaysia is successfully intervening in the relationship between board structures and firm value

<p>A study of intellectual capital was conducted to determine whether it can predict firm value by moderated ROA. This study is a quantitative study using secondary data from 240 observational datasets. Purposive sampling selection with company criteria in the LQ-45 index is used as a selection method consecutively from 2017 to 2020. The method of data analysis was panel data regression and Moderated Regression Analysis. The best estimation model used is the Fixed Effect model. We find that intellectual capital predicts the firm value. We also investigated that value-added capital employed and structural capital value added had a significant effect on firm value. In contrast, value-added human capital had no effect on firm value. We prove that profitability moderates the relationship between intellectual capital and firm value. The findings reveal that intellectual capital is an important determinant of a firm's value, thus the company of the LQ-45 index in developing economies like Indonesia needs to enhance their intellectual potential. Therefore, companies must stimulate the growth of capital employed and the efficiency of structural capital for enhanced firm value by strengthening ROA performance. This allows managers to allocate resources to critical knowledge assets for intellectual capital that can be turned into a sustainable competitive advantage.</p>

This study aims to analyze the impact of Environmental, Social, and Governance (ESG) disclosure, Intellectual Capital (IC), and capital structure proxied by Debt to Equity Ratio (DER) on Firm Value (FV), with Firm Size (FS) as a moderating variable, in energy sector companies listed on the Indonesia Stock Exchange (IDX) for the 2021-2023 period. Using a panel data regression method on 31 companies, this study found that ESG disclosure had a positive and significant effect on FV. However, IC did not show a positive impact on FV, even tending to be negative in Model 1, indicating that the market has not fully valued this intangible asset in the energy sector. Meanwhile, DER showed contradictory results (positive in Model 1, negative in Model 2), reflecting sensitivity to model specifications. FS itself had a negative and significant effect on FV, implying diseconomies of scale or agency problems in large companies. The important moderating role of FS is evident in its adverse moderating impact on the relationship between ESG and FV, where larger firms are less effective in translating ESG disclosure into higher value. Conversely, FS positively moderates the relationship between DER and FV, indicating that larger firms utilize debt more optimally. However, FS does not moderate the relationship between IC and FV. This research provides critical insights for investors and management of energy sector companies, particularly in addressing the complex relationship between sustainability practices, intangible assets, financing structures, and market value amid the global energy transition.

This quantitative study investigates the influence of account payable policy and intellectual capital on the value of companies within the food and beverages sub-sector listed on the Indonesia Stock Exchange. Purposive sampling was employed to select a sample of eight manufacturing companies for the period 2016-2020. Data were collected using documentation techniques and analyzed using SPSS. Results indicate that while the account payable policy significantly affects firm value, intellectual capital does not exhibit a significant impact. These findings shed light on the strategic importance of managing account payables for enhancing firm value in the food and beverages industry. Highlights : The study investigates the influence of account payable policy and intellectual capital on firm value in the food and beverages sector. Purposive sampling was used to select a sample of eight manufacturing companies listed on the Indonesia Stock Exchange. Findings reveal that while account payable policy significantly affects firm value, intellectual capital does not demonstrate a significant impact. Keywords: Account Payable Policy, Intellectual Capital, Firm Value, Food and Beverages, Indonesia Stock Exchange

The Influence of Intellectual Capital on The Firm's Value with The Financial Performance as Intervening Variable

<p>The ownership of intangible assets especially intellectual capital has becoming more important in this modern era where technology and knowledge have significant roles in company operating activities. The objective of this study is to examine the effect of intellectual capital on firm value and financial performance as intervening variable. The sample in this study is the banking sector listed in Indonesia Stock Exchange between 2011-2014 and 15 banks become samples in this study. The data was analyzed using the path analysis method with SPSS.<br />The test result shows that intellectual capital has a positive effect on firm value, intellectual capital has a positive effect on financial performance, financial performance has a positive effect on firm value, and financial performance proved to intervene the relationship between intellectual capital and firm value.</p><p><br />Keywords: Financial Performance, Firm Value, Intellectual Capital</p>

The ownership of intangible assets especially intellectual capital has becoming more important in this modern era where technology and knowledge have significant roles in company operating activities. The objective of this study is to examine the effect of intellectual capital on firm value and financial performance as intervening variable. The sample in this study is the banking sector listed in Indonesia Stock Exchange between 2011-2014 and 15 banks become samples in this study. The data was analyzed using the path analysis method with SPSS. The test result shows that intellectual capital has a positive effect on firm value, intellectual capital has a positive effect on financial performance, financial performance has a positive effect on firm value, and financial performance proved to intervene the relationship between intellectual capital and firm value. Keywords: Financial Performance, Firm Value, Intellectual Capital

PurposeThe purpose of this paper is to analyze and group the intellectual capital components of worldwide organizations through a humanistic model called CONICCVALTM (contextual intellectual capital components valuation). The study aims to consider the difference of perception on the value of intangible assets according to its context.Design/methodology/approachThe importance of the context as a key factor to valuate intellectual capital is highlighted. The research developed by a Mexico based Consulting and Research firm in topics related to intellectual capital and corporate strategy (Instituto de Capital Intelectual) is described, to valuate these intangible assets. The sample population in eight geographic regions, 16 types of industries, two types of operations, and three sizes of organizations was analyzed. The research results were analysed using 41 variables and four factors through the Multiple Analysis of Variance (MANOVA) methodology. The analysis of the principal components analysis (PCA) is also described, and a new model to valuate intellectual capital considering the context is proposed.FindingsIt was demonstrated that: the geographic region, the segment of the industry, and the size of the organization, are statistically significant factors that determine the weighing of intellectual capital. It was found that there are ten principal components that shape intellectual capital, and their profiles were identified to measure it according to the context.Research limitations/implicationsA statistically significant sample of 38,000 executive men and women, graduates and students of Master's and Executive Education programs from a top International Management School in the USA was used. They are considered to be a representative sample of a working business community of 12,000 companies in 140 countries.Practical implicationsThe main parameter used to valuate intellectual capital in this study was the context. It was concluded that only companies inserted in equivalent contexts could be compared.Originality/valueThe contribution of this paper is that it demonstrates the importance of the context in the valuation of intellectual capital.