Proceedings of the 7th International Conference on Applied Economics and Social Science (ICAESS 2025)

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The Role of Intellectual Capital and Profitability through Financial Distress on Firm Value

Authors
Jouzar Farouq Ishak1, *, Syakira Maharani Maulana1, Arry Irawan1, Fifi Afiyanti Tripuspitorini1, Riauli Susilawaty Hutapea1, Neneng Dahtiah1, Yanti Rufaedah1
1Politeknik Negeri Bandung, Gegerkalong Hilir, Bandung Barat, Jawa Barat, 40559, Indonesia
*Corresponding author. Email: ljouzar.farouq@polban.ac.id
Corresponding Author
Jouzar Farouq Ishak
Available Online 13 February 2026.
DOI
10.2991/978-94-6463-990-2_31How to use a DOI?
Keywords
Intellectual Capital; Profitability; Financial Distress; Firm Value
Abstract

The Sustainable Development Goals (SDGs) were adopted by nations worldwide in 2015. SDGs number nine is about fostering innovation, fostering inclusive and sustainable industrialization, and developing resilient industries. One way that the industry may support the SDGs is through intellectual capital, which consists of three key organizational components: customer, structural, and human capital. These components are tied to knowledge and technology that can provide value to the business. Examining the impact of profitability and intellectual capital on firm value via financial distress is the goal of this study. This study employs a quantitative approach using secondary data on firms that are listed on the Indonesia Stock Exchange’s Liquid Index-45. Structural Equation Modelling-Partial Least Squares is the analysis technique used in this study. This study found that intellectual capital and financial distress drive firm value. In addition, financial distress as an intervening variable between the effect of profitability on firm value.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 7th International Conference on Applied Economics and Social Science (ICAESS 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
13 February 2026
ISBN
978-94-6463-990-2
ISSN
2352-5428
DOI
10.2991/978-94-6463-990-2_31How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Jouzar Farouq Ishak
AU  - Syakira Maharani Maulana
AU  - Arry Irawan
AU  - Fifi Afiyanti Tripuspitorini
AU  - Riauli Susilawaty Hutapea
AU  - Neneng Dahtiah
AU  - Yanti Rufaedah
PY  - 2026
DA  - 2026/02/13
TI  - The Role of Intellectual Capital and Profitability through Financial Distress on Firm Value
BT  - Proceedings of the 7th International Conference on Applied Economics and Social Science (ICAESS 2025)
PB  - Atlantis Press
SP  - 480
EP  - 487
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-990-2_31
DO  - 10.2991/978-94-6463-990-2_31
ID  - Ishak2026
ER  -