ANALYSIS OF THE INFLUENCE OF INTELLECTUAL CAPITAL AND CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE

Partogian Sormin, Claudia Cindy Manona

Abstract


This study aims to examine and analyze the effect of intellectual capital and corporate governance on financial performance. This paper presents a new spectrum and recommendation to stakeholders. Previous research related to this already exists, but however, the results are not consistent. This study uses a method developed by Public, namely Value Added Intellectual Capital Efficiency , as an indicator for measuring intellectual capital, and uses three indicators of corporate governance, namely managerial ownership, proportion of independent commissioners, and proportion of independent audit committee. The sample used in this study were 28 manufacturing companies in the consumer goods industry sector listed on the IDX for the 2015-2019 period. The results of this study indicate that intellectual capital and the proportion of independent commissioners have a positive and significant effect on the company's financial performance; managerial ownership has a negative and significant effect on the company's financial performance; and the proportion of independent audit committee has a positive effect on the company's financial performance, but the effect is not significant.


Keywords


intellectual capital; good corporate governance; financial performance

Full Text:

PDF

References


Al-Matari, Y. A., Al-Swidi, A. K., & Fadzil, F. H. B. (2012). Audit committee effectiveness and performance of Saudi Arabia listed companies. Wulfenia Journal, 19(8), 169-188.

Alqatamin, R. M. (2018). Audit Committee Effectiveness and Company Performance: Evidence from Jordan. Accounting and Finance Research. Vol.7, No.2.

Arifin, J. (2017). Corporate Governance and Intellectual Capital on Firm Value of Banking Sector Companies Listed at Indonesia Stock Exchange in Period 2008-2012. Wacana, Vol.20, No.1.

Badan Pusat Statistik. (2020). Pertumbuhan Ekonomi Indonesia Triwulan III-2020. Jakarta: Badan Pusat Statistik.

Bansal, N., & Sharma, A. K. 2016. Audit Committee, Corporate Governance and Firm Performance: Empirical Evidence from India. International Journal of Economics and Finance; Vol. 8, No. 3.

Berke-Berga, A., Dovladbekova, I., & Abula, M. (2017). Managerial Ownership and Firm Performance: Evidence of Listed Companies in the Baltics. Polish Journal of Management Studies, Vol.15, No.2, p273-283.

Bonazzi, L., & Islam, S. M. N. (2007). Agency theory and corporate governance. Journal of Modelling in Management, 2(1), 7–23.

Buallay, A., Hamdan, A., & Dobson, A. (2019). The Relationship between Corporate Governance and Intellectual Capital: The Moderating Role of Firm Size. International Journal of Law and Management.

Chaghadari, M. F., & Chaleshtori, G. N. (2011). Corporate Governance and Firm Performance. International Conference on Sociality and Economics Development IPEDR vol.10. Singapore: IACSIT Press.

Chen, M., Cheng, S., & Hwang, Y. (2005). An empirical investigation of the relationship between intellectual capital and firms’ market value and financial performance. Journal of Intellectual Capital, 6(2), 159–176.

Firer, S., & Williams, M. (2003). Intellectual Capital and Traditional Measures of Corporate Performance. Journal of Intellectual Capital 4(3):348-360.

Forte, W., Matonti, G., & Nicolò, G. (2019). The Impact of Intellectual Capital on Firms’ Financial Performance and Market Value: Empirical Evidence from Italian Listed Firms. African Journal of Business Management, 13(5), 147-159.

Hatane, S.E., Adeline T., and Tarigan, J. (2017). The Impact of Corporate Governance on Intellectual Capital and Firm Value: Evidence from Indonesia and Malaysia Consumer Goods. International Journal of Management and Applied Science, Vol. 3, No. 9: 78-83.

Hidayat, A. A., & Utama, S. (2015). Board Characteristics and Firm Performance: Evidence from Indonesia. International Research Journal of Business Studies, Vol.8, No.3, p137-154.

Hunton, J. E., Lippincott, B., & Reck, J. L. (2003). Enterprise resource planning systems: comparing firm performance of adopters and nonadopters. International Journal of Accounting Information Systems, 4(3), 165–184.

Jusoh, M.A, Ahmad, A. & Omar, B. (2013). Managerial Ownership, Audit Quality, and Firm Performance in Malaysian. International Journal of Arts and Commerce, Vol.2, No.10, pp.45-58

Komite Nasional Kebijakan Governance. (2006). Pedoman Umum Good Corporate Governance Indonesia. Jakarta: Komite Nasional Kebijakan Governance.

Li, D., Moshirian, F., Nguyen, P., & Tan, L.W. (2007). Managerial ownership and firm performance: Evidence from China’s. Research in International Business and Finance, Vol.21(3):396-413.

Maditinos D, Chatzoudes D, Tsairidis C, Theriou G. (2011). The impact of intellectual capital on firms' market value and financial performance. Journal of Intellectual Capital 12(1):132-151.

Mandacı Pınar & Gumus Guluzar, (2010). Ownership Concentration, Managerial Ownership and Firm Performance: Evidence from Turkey. South East European Journal of Economics and Business, Sciendo, vol. 5(1), p57-66.

Mukhtaruddin., Relasari., & Felmania, M. (2014). Good Corporate Governance Mechanism, Corporate Social Responsibility Disclosure on Firm Value: Empirical Study on Listed Company in Indonesia Stock Exchange. International Journal of Finance & Accounting Studies, Vol.2, No.1.

Nazari, J., & Herremans, I. (2007). Extended VAIC model: Measuring intellectual capital components. Journal of Intellectual Capital. 8. 595-609.

Nugrahani, T. S., Arifah, N., & Grediani, E. 2020. Intellectual Capital and Financial Performance in the Indonesian Stock Exchange. International Journal of Innovation, Creativity and Change, Volume 13, Issue 11.

Nukmaningtyas, F., & Worokinasih, S. (2018). Penggunaan Rasio Profitabilitas, Leverage dan Arus Kas untuk Memprediksi Financial Distress. Jurnal Adimintasi Bisnis, Vol.61, No.2.

Nuryanah, S., & Islam, S. M. N. (2011). Corporate Governance and Performance: Evidence from an Emerging Market. Malaysian Accounting Review, Vol.10, No.1, p17-42.

Peltier, M. R., Wilcox, C. J., & Sharp, D. C. (1998). Technical note: Application of the Box-Cox data transformation to animal science experiments. Journal of Animal Science, 76(3), 847.

Pertiwi, T. K., & Pratama, F. M. I. (2012). Pengaruh Kinerja Keuangan, Good Corporate Governance terhadap Nilai Perusahaan Food and Beverage. Jurnal Manajemen dan Kewirausahaan, Vol.4 No.2.

Rashid, K. (2008). A Comparison of Corporate Governance and Firm Performance in Developing (Malaysia) and Developed (Australia) Financial Markets.

Reddy, K., Locke, S., & Scrimgeour, F. (2010). The efficacy of principle‐based corporate governance practices and firm financial performance. International Journal of Managerial Finance, 6(3), 190–219.

Riahi‐Belkaoui, A. (2003). Intellectual capital and firm performance of US multinational firms. Journal of Intellectual Capital, 4(2), 215–226.

Rose, C. (2005). Managerial Ownership and Firm Performance in Listed Danish Firms. European Management Journal, 23(5), 542–553.

Sardo, F., & Serrasqueiro, Z. (2017). A European empirical study of the relationship between firms’ intellectual capital, financial performance and market value. Journal of Intellectual Capital, Vol. 18 No. 4, pp. 771-788.

Shil, N. C. (2008). Accounting for Good Corporate Governance. JOAAG, Vol.3 No.1.

Škare, M., & Hasić, T. (2016). Corporate Governance, Firm Performance, And Economic Growth – Theoretical Analysis. Journal of Business Economics and Management, 17(1), 35–51.

Smriti, N., & Das, N. (2018). The impact of intellectual capital on firm performance: a study of Indian firms listed in COSPI. Journal of Intellectual Capital, Vol. 19 No. 5, pp. 935-964.

Ståhle, P., & Ståhle, S., & Aho, S. (2011). Value Added Intellectual Coefficient (VAIC): a critical analysis. Journal of Intellectual Capital. 12(4):247-268.

Widhiadnyana, I. K., & Ratnadi, N. M. D. (2019). The Impact of Managerial Ownership, Institutional Ownership, Proportion of Independent Commissioners, and Intellectual Capital on Financial Distress. Journal of Economics, Business, and Accountancy Ventura Vol. 21, No. 3, p351-360.


Refbacks

  • There are currently no refbacks.


 Fakultas Ekonomi dan Bisnis | Universitas Pelita Harapan | Kampus Universitas Pelita Harapan | Gedung F Lt. 12 | Lippo Karawaci, Tangerang - 15811 | Telp 021-5460901 | Fax 54210992