The Role of Intellectual Capital and Good Corporate Governance Toward Financial Performance

Indri Kartika, Maya Indriastuti, Sutapa Sutapa

Abstract


The purpose of this study is to analyze and test empirically the variables that affect financial performance. Using 520 manufacturing companies listed on Indonesia Stock Exchange for the period of 2010-2019, all data were processed by using the structural equation modeling analysis. The results of this study explained that intellectual capital and good corporate governance in terms of the board of commissioners have a significant positive effect on financial performance. The existence of intellectual capital and the board of commissioners can improve financial performance, so that manufacturing companies are able to survive and even be stable. The implication of this study is to enrich the literature review and to be used as policy making basis for the government and manufacturing companies. Moreover, it can be a basis for investors to consider an investement

Keywords


intellectual capital; good corporate governance; financial performance; manufacturing companies

Full Text:

PDF

References


Ararat, M., Black, B.S., and Yurtoglu, B.B. (2016). The effect of corporate governance value and profitability: Time-series evidence from Turkey. Emerging Market Review. pp. 20-30.

Ardiansari, A., Nugrahaini, M., & Putri, V. W. (2018, October). Intellectual Capital Influence on Financial Performance and Company Value. International Conferences on Economics, Business and Economic Education, 1242-1254. doi:10.18502/kss.v3i10.3205

Chowdhury, L., Rana, T., Akter, M. and Hoque, M. (2018), "Impact of intellectual capital on financial performance: evidence from the Bangladeshi textile sector", Journal of Accounting & Organizational Change, Vol. 14 No. 4, pp. 429-454. https://doi.org/10.1108/JAOC-11-2017-0109

Deep, R. and Narwal, K. P. (2014), “Intellectual Capital and its Association with Financial Performance: A study of Indian Textile Sector”, International Journal Management and Business Research, Vol. 4, No. 1, pp. 43-54.

Forum for Corporate Governance in Indonesia (FCGI). (2006). FCGI Publication 2006. www.fcgi.or.id/en/abotgc.shtml

Fung, B. (2014). The demand and need for transparency and disclosure in corporate governance universal. Journal of Management.

Ghozali, I. 2016. Aplikasi Analisis Multivariat dengan Program IBM SPSS 23. Semarang: Badan Penerbit Universitas Diponegoro.

Ghozali, I., & Latan, H. (2015). Partial Least Squares konsep, teknik dan aplikasi menggunakan program SmartPLS 3.0. Semarang: Universitas Diponegoro Semarang.

Gunawan, H., & Tartila, R. (2017). Impact of Intelectual Capital on Financial Performance. Journal of Applied Managerial Accounting, 1(1), 45-50.

Holienka, M., and Pilkova, A. (2014). Comparing impact of Intellectual Capital on firmn performance before and after crisis. Proceeding of The 6th European Conference on Intellectual Capital (ECIC). Slovak University of Technology (STU). Slovak Republik.

Indriantoro, Nur and Bambang Supomo. 2014. Metodologi Penelitian Bisnis Untuk Akuntansi & Manajemen. Edisi 1. Cetakan ke-12. Yogyakarta: BPFE.

Jensen, M., C., and W. Meckling, 1976. “Theory of the firm: Managerial behavior, agency cost and ownership structure”, Journal of Finance Economic 3:305- 360, http://www.nhh.no/for/courses/spring/eco420/jensenmeckling-76.pdf.

Kabir, R. and Thai, H. (2017), "Does corporate governance shape the relationship between corporate social responsibility and financial performance?”, Pacific Accounting Review, Vol. 29 No. 2, pp. 227-258. https://doi.org/10.1108/PAR-10-2016-0091.

Kasmir. (2016). Analisis Laporan Keuangan. Jakarta: Raja Grafindo Persada.

Mahrani, M. and Soewarno, N. (2018), "The effect of good corporate governance mechanism and corporate social responsibility on financial performance with earnings management as mediating variable", Asian Journal of Accounting Research, Vol. 3 No. 1, pp. 41-60. https://doi.org/10.1108/AJAR-06-2018-0008.

Mohammad, H. S., Bujang, I., & Hakim, T. A. (2018, May). The Impact of Intellectual Capital on Financial Performance of Malaysian Construction Firms. International Journal of Academic Research in Business & Social Sciences, 8(5), 173-186. http://creativecommons.org/licences/by/4.0/legalcode

Ozkan, N., Cakan, S., and Kayacan, M. (2016), “Intellectual capital and financial performance: A study of the Turkish Banking Sector”,https://ac.els-cdn.com/S2214845016300011/1-s2.0-S2214845016300011-main.pdf?_tid=c5686480-c219-11e7-a755-00000aacb361&acdnat=1509880340_d46d90240bf18ce0c33cf3793a3162be

Penrose, E. T. (1959). The Theory of the Growth of the Firm. Great Britain : Basil Blackwell & Mott Ltd.

Poh, L. T., Kilicmen, A., & Ibrahim, S. N. (2018, March). On Intelectual Capital and Financial Performances of Banks in Malaysia. Cogent Economics & Finance. https://doi.org/10.1080/23322039.2018.1453574

Pulic, Ante. 1998. Measuring the Performance of Intellectual Potential in Knowledge Economy (presented in 1998 at the 2nd McMaster World Congress on Measuring and Managing Intellectual Capital by the Austrian Team for Intellectual Potential).

Ranani, H. S. and Bijani, Z. (2014), “The impact of intellectual capital on financial performance of Listed companies in Trehan Stock Exchange”, International Journal of Academic Research in Accounting, Finance and Management Sciences, Vol. 4, No. 1, pp. 119-127.

Vladimir, D. Yaacoub, C., Elkanj, N. and Bontis, N. (2017), “Impact of intellectual capital on corporate performance: evidence fromthe Arab region”,Journal of Intellectual Capital, Vol. 18 Issue: 4, pp.884-903,https://doi.org/10.1108/JIC-01-2017-0014.

www.idx.co.id




DOI: https://doi.org/10.17509/jaset.v13i1.33999

Refbacks

  • There are currently no refbacks.


Creative Commons License

Jurnal ASET (Akuntansi Riset) is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. 

View My Stats Visitor