Abstract
<p><em>Manufacturing industry is the industry that the largest contribution to GDP growth until 2017. Although still the largest source of the increase in GDP, the contribution of manufacturing to GDP continued to decline since 2015. However, this does not cause the stock price decline of manufacturing. Based on this phenomenon, this study aims to examine the internal factors are thought to be able to increase the value of the company. The population in this study are all manufacturing companies listed in Indonesia Stock Exchange in 2013-2017 as many as 144 companies with a total sample of 76 companies that obtained by purposive sampling. Then, samples were analyzed using Structural Equation Modeling results show that IC and capital structure does not directly affect the value of the company. But IC and capital structure directly affects financial performance. Thus, the financial performance is able to mediate the effects of IC and capital structure to the company's value. The better the financial performance of a company, the better is also the company's value in the eyes of investors.</em></p><p><em><strong><em>Keywords</em></strong><em>: Intellectual Capital, Capital Structure, Financial Performance, Company Value</em></em></p>
Highlights
Based on scientific logic, economic conditions will affect the company's activities, from production to sales activity activity
The population in this study are all manufacturing companies listed in Indonesia Stock Exchange in 2013-2017 as many as 144 companies with a total sample of 76 companies that obtained by purposive sampling
The financial performance is able to mediate the effects of IC and capital structure to the company's value
Summary
Economic conditions will affect the company's activities, from production to sales activity activity. The decrease is what causes investors are reluctant to invest their funds in a company, which will lower the company's stock price. This is shown when the GDP growth increased in 2015-2017, followed by an increase in the share price of manufacturing in the same year. Based on the above phenomenon, it can be concluded that there are many factors that can affect a company's stock price. Intellectual Capital can increase the value of the company because the company has a competitive advantage
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