Intellectual Capital and Firm Performance - Evidence from Indonesia

Budi Yuda Prawira, Rahmat Setiawan

2018

Abstract

This study aims to examine the effect of intellectual capital and its components such as value added capital employed, value added human capital, and structural capital value added on firms performance. Intellectual capital was measured using pulic’s models, while firms performance measured by return on asset, return on equity, and market- to-book ratio. The samples are 102 firms in the manufacturing industry sector listed in Indonesia Stock Exchange over the time window 2012-2016. Multiple regression analysis have been utilized to test the hypothesis. The result showed that intellectual capital has a significant positive effect on return on asset, return on equity, and market-to-book ratio. In addition, the result show that value added capital employed, a component of intellectual capital was found to be the most influential value drivers for firm performance than value added capital employed and structural capital value added. This findings suggest that having large capital employed and good managing on it, enabling firm to improve financial performance and their maket value.

Paper Citation

in Harvard Style

Prawira B. and Setiawan R. (2018). Intellectual Capital and Firm Performance - Evidence from Indonesia.In Proceedings of the 2nd International Conference Postgraduate School - Volume 1: ICPS, ISBN 978-989-758-348-3, pages 951-956. DOI: 10.5220/0007554609510956

in Bibtex Style

@conference{icps18,
author={Budi Yuda Prawira and Rahmat Setiawan},
title={Intellectual Capital and Firm Performance - Evidence from Indonesia},
booktitle={Proceedings of the 2nd International Conference Postgraduate School - Volume 1: ICPS,},
year={2018},
pages={951-956},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007554609510956},
isbn={978-989-758-348-3},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference Postgraduate School - Volume 1: ICPS,
TI - Intellectual Capital and Firm Performance - Evidence from Indonesia
SN - 978-989-758-348-3
AU - Prawira B.
AU - Setiawan R.
PY - 2018
SP - 951
EP - 956
DO - 10.5220/0007554609510956