Analysis of the Influence of Intellectual Capital and Financial Performance on Company Value in Conventional Commercial Banks on the Indonesia Stock Exchange (Period 2014-2023)

Purpose – This study aims to analyze and test the influence of intellectual capital on company value through financial performance. The Company's value measurement tools include price-to-book value (PBV), firm performance as measured by return on assets (ROA), and intellectual capital (VAICTM). State-owned banking companies have gone public with the 2014-2023 research period. Research Methodology – The research method employed in this study is path analysis, which utilizes six variables. The first variable, Intellectual Capital, is measured by the Value-Added Intellectual Capital (VAIC-TM) by the public (2000) and is divided into three variables: value capital employed efficiency (VACA), structural capital value added (STVA), and value human capital efficiency (VAHU). These variables are independent. The next variable is ROA, serving as the Firm's performance Proxy, which acts as the mediator variable. The final variable, the Dependent variable, is PBV, representing the corporate value's Proxy. This study will analyze the influence of each intellectual capital component on PBV, both directly and indirectly through ROA as a mediator variable. The analysis of VAIC on PBV will be conducted both directly and through ROA as a mediator variable, providing a comprehensive understanding of the relationships between the variables. Findings – Based on the statistical results, this research found that (1) all IC Components have a positive impact on the Company's performance (ROA) (2) VAICTM itself has a positive influence on the Company's performance (ROA); (3) there are no the component of IC and VAICTM has direct impact significantly on Company's value (PBV); (5) while the Company's performance (ROA) positive influences on PBV. Furthermore, (6) company performance (ROA) cannot be an intermediary variable between IC components and Company Value (PBV); on the contrary, it can be an intermediary variable between VAICTM and Company Value (PBV), where VAICTM has an indirect positive impact on company value (PBV). Novelty: While previous studies have explored the impact of intellectual capital (IC) on financial performance and firm value, this study specifically examines state-owned conventional commercial banks in Indonesia over 10 years (2014-2023). This long-term focus provides a more comprehensive understanding of trends and relationships.

Authors

Publication Details

Journal
Journal of Economics Finance and Management Studies
Published
2025-09-23
DOI
https://doi.org/10.47191/jefms/v8-i9-31
Primary Topic
Financial Analysis and Corporate Governance
Type
article
Field-Weighted Citation Impact
0.00
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article

Analysis of the Influence of Intellectual Capital and Financial Performance on Company Value in Conventional Commercial Banks on the Indonesia Stock Exchange (Period 2014-2023)

Sakina Ichsani, Leni Nur Pratiwi, Wahyu Panji Nugrahani
Journal of Economics Finance and Management Studies
Financial Analysis and Corporate Governance
article

Analysis of the Influence of Intellectual Capital and Financial Performance on Company Value in Conventional Commercial Banks on the Indonesia Stock Exchange (Period 2014-2023)

Sakina Ichsani, Leni Nur Pratiwi, Wahyu Panji Nugrahani
article en

Abstract

Purpose – This study aims to analyze and test the influence of intellectual capital on company value through financial performance. The Company's value measurement tools include price-to-book value (PBV), firm performance as measured by return on assets (ROA), and intellectual capital (VAICTM). State-owned banking companies have gone public with the 2014-2023 research period. Research Methodology – The research method employed in this study is path analysis, which utilizes six variables. The first variable, Intellectual Capital, is measured by the Value-Added Intellectual Capital (VAIC-TM) by the public (2000) and is divided into three variables: value capital employed efficiency (VACA), structural capital value added (STVA), and value human capital efficiency (VAHU). These variables are independent. The next variable is ROA, serving as the Firm's performance Proxy, which acts as the mediator variable. The final variable, the Dependent variable, is PBV, representing the corporate value's Proxy. This study will analyze the influence of each intellectual capital component on PBV, both directly and indirectly through ROA as a mediator variable. The analysis of VAIC on PBV will be conducted both directly and through ROA as a mediator variable, providing a comprehensive understanding of the relationships between the variables. Findings – Based on the statistical results, this research found that (1) all IC Components have a positive impact on the Company's performance (ROA) (2) VAICTM itself has a positive influence on the Company's performance (ROA); (3) there are no the component of IC and VAICTM has direct impact significantly on Company's value (PBV); (5) while the Company's performance (ROA) positive influences on PBV. Furthermore, (6) company performance (ROA) cannot be an intermediary variable between IC components and Company Value (PBV); on the contrary, it can be an intermediary variable between VAICTM and Company Value (PBV), where VAICTM has an indirect positive impact on company value (PBV). Novelty: While previous studies have explored the impact of intellectual capital (IC) on financial performance and firm value, this study specifically examines state-owned conventional commercial banks in Indonesia over 10 years (2014-2023). This long-term focus provides a more comprehensive understanding of trends and relationships.

Journal of Economics Finance and Management StudiesVol. 08(09)
Openalex Percentile: Top 62%
Financial Analysis and Corporate Governance
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