The Role of Intellectual Capital in Increasing Company Value with Profitability as an Intervening Variable

DOI

10.2991/aebmr.k.210507.016How to use a DOI?

Keywords

company value, intellectual capital, profitability, human capital, structure capital, relational capital

Abstract

The company’s current value is not only determined by tangible assets. The ability of intangible assets in increasing company value today is very interesting to be studied. Intellectual Capital is an intangible asset in the form of knowledge, talents, skills, information, networking that can be managed by a company to increase its competitive ability. This study investigated the effect of intellectual capital on firm value both directly and indirectly with profitability functioning as an intervening variable. The firm value as a dependent variable is proxied by Tobin’s Q, while the profitability variable that functions as an intervening variable is proxied by ROA. Intellectual capital is measured using VAIC, which consists of 3 measurement components, that is Value-Added of Human Capital (VAHU), Value-Added of Employed Capital (VACA), and Structural Capital Value-Added (STVA). The research method used multiple regression analysis tools with a panel data approach and path analysis. The subject of this study is companies that are in the hotel, restaurant, and tourism sub-sector, which are listed in the Indonesia Stock Exchange in the 2014-2018 period selected using purposive sampling techniques. Research data is in form of secondary data extracted from the company’s financial statements during the study period. The results show that profitability, VACA, and VAHU directly affect the value of the company, while only VAHU directly affected the profitability of the company. Meanwhile, in the indirect relationship using the Sobel-Test, the results show that the profitability of the company can only mediate VAHU toward the company value, but profitability cannot mediate the effect of VACA and STVA on company value.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Khairina Natsir
AU  - Nurainun Bangun
PY  - 2021
DA  - 2021/05/09
TI  - The Role of Intellectual Capital in Increasing Company Value with Profitability as an Intervening Variable
BT  - Proceedings of the Ninth International Conference on Entrepreneurship and Business Management (ICEBM 2020)
PB  - Atlantis Press
SP  - 101
EP  - 110
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210507.016
DO  - 10.2991/aebmr.k.210507.016
ID  - Natsir2021
ER  -