Growth, Intellectual Capital, Financial Performance And Firm Value : Evidence From Indonesia Automotive Firms
Abstract
This study analyzes and explains empirical evidence of the effect of growth and Intellectual Capital respectively on financial performance and firm value, as well as the role of Financial Performance in mediating the influence of company growth and Intellectual Capital respectively on firm value. The benefits of this research are expected to be a reference that enriches the literature of Management Science, especially related to signaling theory and Resource Based Theory. In addition, this research is expected to provide benefits for automotive company managers in developing strategies that can improve financial performance and firm value, investors in automotive companies in making the right decisions in investing in automotive companies and the government in formulating policies related to automotive companies so that more investors invest in automotive companies. To test the hypothesis used Partial Least Square (PLS) analysis. The results of the hypothesis test show that: (1) the company's growth has a positive and insignificant effect on financial performance, (2) Intellectual Capital has a positive and significant effect on financial performance, (3) company growth has a positive and insignificant effect on firm value, (4) Intellectual Capital has a positive and insignificant effect on firm value, (5) financial performance has a positive and significant effect on firm value, (6) financial performance does not mediate the company's growth to the company's value and (7) financial performance mediates Intellectual Capital to the value of the company
Downloads
References
Al-Musali, MA and KN I Ismail. 2016. Cross-Country Comparison Of Intellectual Capital Performance And Its
Impact On Financial Performance Of Commercial Banks In GCC Countries. International Journal of Islamic
and Middle Eastern Finance and Management 9 (4) : 512-531.
Andreeva, T. and Garanina. 2017. Intellectual Capital and Its Impact On The Financial Performance of Russian
Manufacturing Companies. Foresight And Sti Governance 11(1) : 31-40.
Anifowose, M., HMA Rashid, HA Annuar and Ibrahim. 2018. Intellectual Capital Efficiency And Corporate
Book Value: Evidence From Nigerian Economy. Journal of Intellectual Capital 19 (3): 644-668.
Batchimeg, Bayaraa . 2017. Financial Performance Determinants of Organizations: The Case of Mongolian
Companies . Journal of Competitiveness : 22-33.
Brigham, F.E and MC Ehrhardt. 201 9 . Financial Management Theory and Practice . 14th Edition. Cengag e
Chabachib, M., H. Hersugondo, E. Ardiana and ID Pamungkas. 2020. Analysis of Company Characteristics of s:
Profitability as Intervening Variables. International Journal of Financial Research 11 (1) :60-70
Chen, MC, SJ Cheng and Y. Wang. 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.
Chu, TTT, TH Nguyen and TQ Ngo. 2015. Analyzing Factors Influencing Financial Performance: The Case
Study Of Non Financial Listed Firms On Ho Chi Minh Stock Exchange. Journal of Economic Development
(1): 59-66
Clarke, M., D. Seng and RH Whiting. 2011. Intellectual Capital and Firm Performance in Australia. Journal of
Intellectual Capital 12(4) : 505-530.
Dang NH, PD Cuong and VTB Ha. 2019. Study the Impact of Growth, Firm Size, Capital Structure, and
Profitability on Enterprise Value: Evidence of Enterprises in Vietnam. The Journal Of Corporate Accounting
and Finance 30(1): 144-160.
Egbunike, CF and CU Okerekeoti. 2018. Macroeconomic Factors , Firm Characteristics And
Financial Performance . A Study Of Selected Quoted Manufacturing Firms In Nigeria. Asian Journal of
Accounting Research 3(2): 142- 168.
Fahimi, SM and H. Fakhari. 2017. The Mediating Effect Of Financial Performance On The Relationship
Between Intellectual Capital & Market Share: Evidence From the Tehran Stock Exchange. Risk Governance and
Control: Financial Markets And Institutions 7(4) : 153-162.
Ghozali, I and. H., Latin. 2014. Partial Least Squares: Concepts, Techniques and Applications Using the
SmartPLS3.0 Program . Second Edition. Diponegoro University. Semarang.
International Journal of Science, Technology & Management ISSN: 2722 - 4015
Hoang, TVH, NH Dang, MD Tran, TTV Vu and Quang. 2019. Determinants Influencing Financial Performance
Of Listed Firms: Quantile Regression Approach. Asian Economic and Financial Review 9(1): 78-90
Khusnah, H and M. Anuggraini. 2021. Mediation Effect of Financial Performance on The Influence of
Intellectual Capital on . Scientific Journal of Accounting and Finance 10(2) : 106-114.
M. Hedija, and V.R. fiala . 2016. Firm Size as a Determinant of Firm Performance: The Case of Swine Raising.
AGRIS On-line Papers in Economics and Informatics Prague 8(3): 77-89.
Lasisi, IO, CA Dikki, and J. Okpanachi. 2017. Empirical Determinant Of Firm 's Profitability: Evidence From
Listed Agricultural Companies In Nigeria. Journal of Management Sciences 15(8): 66-88.
Nimtrakoon, S. 2015. The Relationship Between Intellectual Capital , Firms' Market Value And Financial
Performance Empirical evidence from the ASEAN. Journal of Intellectual Capital 16 (3): 587-618.
Ongere, VO, and GB Kusa. 2013. Determinants of Financial Performance of Commercial Banks in Kenya.
International Journal Of Economics And Financial 3(1):237-252.
Pulic, A. 1998. Measuring Of Performance Of Intellectual Potential In Knowledge Economy. 2nd McMaster Word
Congress On Measuring And Managing Intellectual Capital, The Austrian Team For Intellectual Potential.
Rashid, M. Khalid , Niazi, AA Khan , Noreen, and Misbah . 2018. Impact of Intellectual Capital on Firms'
Market Value and Financial Performance: Empirical Evidence from Pakistan. NUML International Journal of
Business and Management Islamabad 13(1) :22-34.
Sardo, F., and Z. Serrasqueiro, Z. 2017. A European Empirical Study Of The Relationship Between Firms'
Intellectual Capital , Financial Performance And Market Value. Journal of Intellectual Capital 18(4) : 771–
Shah , Faiza Maqbool and MA Khalidi. Determinant of In Shariah Compliant Companies. Market Forces
Research Journal 15(1): 86-100
Singh, Kuldeep , Misra, Madhvendra , Kumar, Mohit , Tiwari and Vineet . 2019. A Study On The Determinants
Of Financial Performance Of US Agricultural Cooperatives. Journal of Business Economics and Management
Vilnius 20(4) : 633 - 647
Siti, B., R. Kusumawati and IN Khusniyah. 2020. The Financial Performance: Mediator Of Intellectual Capital
And The . Eurasia: Economics & Business 4(34) : 39-48
Subaida, I., Nurkholis and E. Mardiati, E. 2018. Effect Of Intellectual Capital And Intellectual Capital
Disclosure On. Journal of Applied Management 161 : 125-135.
Sucuachi, W., and JM Cambarihan. 2016. Influence Of Profitability to The of Diversified Companies in
Philippines. Accounting And Finance Research 5(2) : 149-153.
Sugosha, MJ and LGS Artini. 2020. The Role of Profitability in Mediating Company Ownership Structure and
Size of in the Pharmaceutical Industry on the Indonesia Stock Exchange. International Research Journal of
Management, IT And Social Sciences 7 (1) : 104-115.
Vu, TH, VDNguyen, MTHo, and QH Vuong. 2019. Determinants of Vietnamese Listed Firm Performance:
Competition, Wage, CEO, Firm Size, Age, and International Trade. Journal of Risk and Financial
Management , 12(2) : 62 -74 .
Winarto, Jacinta . 2015. The Determinants of Manufacturer in Indonesia Stock Exchange. Journal of
Information, Business and Management Chung Li 7(4) : 323-349.