Abstract
Companies that can survive are companies that need to quickly change its strategy from a business based on labor towards knowledge-based business, so that the main characteristics of the company are changed towards a science-based company. This study examines the relationship of value added capital employed, value-added human capital, structural capital value added and financial performance. The method of this research is purposive sampling with a total of 34 samples analyzed by using Eviews version 9. The result stated that value added capital employed has no effect on return on asset, value added human capital has an effect on return on asset, structural capital value added has an effect on return on asset.
Highlights
Companies with high intellectual capital are one of the companies listed on the LQ45 index, and have high market capitalization and can demonstrate a consistency of performance
This study aims to determine the relationship was performed using descriptive analysis, verificaof the value added capital employed, value added tion analysis and classical assumption test, panel dahuman capital, structural capital value added ta regression analysis, and hypothesis testing
Based on the results of the discussion and analysis that have been done related to the relationship of value added capital employed, value added human capital, structural capital value added and financial performance, it can be concluded: 1. Value Added Capital Employed does not have a significant relationship between one independent variable and dependent variable that is, Value Added Capital Employed with company performance (ROA) of LQ45 index companies in the period 2014–2016, this is known from probability value (p-value) equal to 0.4217 with a significance level α of 5%
Summary
Companies with high intellectual capital are one of the companies listed on the LQ45 index, and have high market capitalization and can demonstrate a consistency of performance. The existence of return on asset (ROA) of LQ45 index company is not in line with the state of Intellectual Capital or inversely proportional to phenomenon in the period 2014–2015 and resulted in its performance bung bad enough so that ability of company to yield profit every year has fluctuating condition at the time of company growth, only slightly increased so that it will affect the investor confidence and sustainability of the company by anticipating and knowing the factors that cause the decline in the level of profitability (return on asset) in the year. The research conducted (Chen, Cheng, & Hwang, 2005; Hussinki, Ritala, Vanhala, & Kianto, 2017; Nik Muhammad & Ismail, 2009) relates to the financial performance using return on assets as an indicator of company efficiency in utilizing the existing assets and controlling firms’ financing policy
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