The Dynamic Impact of Intellectual Capital on Firm Value: Evidence from Indonesia

Dina Ermawati, Nurcahyono Nurcahyono (), Desi Novita Sari and Iwan Fakhruddin
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Dina Ermawati: Universitas Muhammadiyah Semarang, Department of Accounting
Nurcahyono Nurcahyono: Universitas Muhammadiyah Semarang, Department of Accounting
Desi Novita Sari: Universitas Muhammadiyah Purwokerto, Department of Accounting
Iwan Fakhruddin: Universitas Muhammadiyah Purwokerto, Department of Accounting

A chapter in Proceedings of the International Conference on Business, Accounting, Banking, and Economics (ICBABE 2022), 2023, pp 246-262 from Springer

Abstract: Abstract Increasing business growth encourages companies to increase company achievements, prosper shareholders and grow company value. This study aims to show the effect of the mechanism of Institutional Ownership, Leverage, Profitability, Intellectual Capital, Current Ratio, and Earning Per Share on Firm Value and the effect of independent commissioners as a moderating variable. The study used secondary data from financial reports listed on the IDX for 2017–2021. Analysts data with multiple linear regression using SPSS 26. This test proves that profitability and leverage positively affect firm value. In contrast, institutional ownership, intellectual capital, current ratio, and earnings per share have a negative impact on firm value. Other results show that independent commissioners can moderate by weakening the link between leverage and company value. Still, independent commissioners cannot moderate the relationship between intellectual capital and the importance of financial sector companies listed on the Indonesia Stock Exchange for 2017–2021. This research contributes knowledge about the relationship between institutional ownership, leverage, intellectual capital, current ratio, earnings per share, and company value. Intellectual capital as a novelty is used to determine how influential intellectual capital is in increasing company value. In this study, an independent commissioner was used to influence the relationship between the independent variables and the dependent variable.

Keywords: Institutional ownership; intellectual capital; financial ratio and firm value (search for similar items in EconPapers)
Date: 2023
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DOI: 10.2991/978-94-6463-154-8_23

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