The Impact of Intellectual Capital on the Financial Performance of Non-Financial Services Companies Listed in Indonesia Stock Exchange within 2010-2013

Abstract

This study aimed to analyze the influence of intellectual capital on the financial performance. Intellectual capital is an independent variable, which is represented by the Value Added Intellectual Capital (VAICTM), and financial performance is a dependent variable, which is measured by Return on Assets (ROA), Return on Equity (ROE), Assets Turnover (ATO), and Growth Revenue (GR). This study was conducted by applying the purposive sampling technique on non- financial services companies that were listed in the Indonesia Stock Exchange within 2010-2013. The non-financial services companies consisted of 33 companies of Property, Real Estate, and Building Construction Sector; 7 companies of Infrastructure, Utilities, and Transportation Sector; and 44 companies of Trade, Services, and Investment Sector. The study was a descriptive- verificative-study with a panel-data-regression as the analysis technique. The results of this study shows that the intellectual capital significantly influenced ROA and ROE in three sectors, but it significantly affected ATO only in Property, Real Estate, Building Construction Sector, Infrastructure, and Utilities & Transportation Sector. The intellectual capital also significantly influenced GR only in Property, Real Estate, and Building Construction Sector.