Intellectual Capital Utilization And Intellectual Capital Growth In Improving Current And Future Financial Performance In Asean In The Era Of Asean Economic Community

Maulida Nurul Innayah,Hardiyanto Wibowo,Bima Cinintya Pratama,Fatmah Bagis

doi:10.29040/jap.v21i1.1076

Maulida Nurul Innayah, Hardiyanto Wibowo

Open Access

https://doi.org/10.29040/jap.v21i1.1076

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Abstract

This paper examines the association between intellectual capital (IC), rate of growth of intellectual capital (ROGIC), and firm financial performance in an emerging market context, which is ASEAN. The effect of Intellectual Capital and the rate of growth of Intellectual capital is tested towards firm financial performance, namely current financial performance and future financial performance. Panel data regression model analysis is used for a sample of manufacturing companies in ASEAN countries, namely Indonesia, Malaysia, Philippines, Thailand, and Singapore during 2015-2018. The results showed that intellectual capital and ROGIC has a positive effect on firm financial performance, both current and future performance. This result indicates that intellectual capital can generate higher financial performance for the firms, both in the current period and until the future period. A similar result also found in the relationship between ROGIC which is the rate of growth of IC toward firm financial performance. This result implies that firms should utilize and maintain intellectual capital together with maintaining IC growth (ROGIC) to maintain and preserve its performance in the current and future term.

Highlights

In this era of globalization, more and more companies in the world are doing business operations outside the boundaries of the country
value-added intellectual coefficient (VAIC) which is a proxy from intellectual capital Company has an average value of 4.26706
The results showed that rate of growth of intellectual capital (ROGIC) as a proxy of IC growth rates had a positive effect on ROAt and ROAt + 1 as a proxy for present and future financial performance with a coefficient of 13.50362 and 16.11306 at a significance rate of α = 1%

Summary

Introduction

In this era of globalization, more and more companies in the world are doing business operations outside the boundaries of the country. This demonstrates the direction of global business operations. Not close the possibility of competition between companies and organizations in the ASEAN region that will become increasingly competitive. This will certainly require the company to improve and improve its performance through the use of more effective and efficient resources so that the company can create value-added and compete in competitive markets

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