Does institutional ownership moderate the effect of intellectual capital and company value?

Abstract

This study aims to empirically examine the influence of intellectual capital towards company value and also its influence while being moderated by institutional ownership. This study uses purposive sampling to determine samples from manufacturing companies listed in Indonesia Stock Exchange during the year of 2014–2018. The total sample obtained in this study is 301 from the 720 population of data throughout the research year. Data analysis techniques use multiple regression and moderated regression analysis (MRA) methods. The results of this study show that Intellectual Capital has a positive significant effect on company value while institutional ownership does not have a significant effect on moderating the influence of intellectual capital towards company value. The practical implication of this study is to provide information to managers or owners of public manufacturing companies and investors about the importance of intangible assets investment like intellectual capital as the competitive strategies to achieve more optimal company value, as well as for regulator to make clear regulations about the disclosures of intangible assets.

The Relationship Between Intellectual Capital, Research and Development and Organizational Performance of Tea Processing Firms in Kenya

“…The study findings agree with the study findings carried out by Tea Board statistics of India 91 (2016), which pointed out that most tea processing firms' information is contained in manuals, its knowledge and information is not entrenched in structures and knowledge sharing is scanty apart from team briefing. The study findings conform to study, report by Paputungan et al(2020) which pointed out that Kenyan tea firms require databases, structures and development of new ideas.…”

“…Structural aspect of societal capital concentrates on whole design of relations amongst stakeholders that is connected to density, connectivity and hierarchy of connections whereas interactive dimension stresses assets generated and leveraged by associations through trust and trustworthiness (Zerenler et al, 2008). Trust stimulates mutual efforts (Paputungan et al, 2020) as cited in (Sofian et al, 2020). Therefore, when trust is recognized between parties, they are ready to share assets and turn to be cooperative.…”

“…As a result, R & D has been considered as an important element in improving the specialization patterns of organization's competitiveness globally, helps in the improvement of existing products, formation of new products and innovation of the production procedures of organizations thus improving organizational performance (Abutabenjeh & Jaradat, 2018). Furthermore, R & D is also aimed at improving the professional know-how associated with the processing and production processes of organizations, covering issues such as basic research, product design, manufacturing processes and service procedures (Paputungan et al, 2020). Consequently, an increase in a organization`s R & D will aid modernize the production of new goods, rendering them appealing to hook the responsiveness of domestic buyers away from imports as well as to catch the attention of foreign buyers, thus increasing exports (Gatimbu et al, 2020).…”

Female directors' representation and intellectual capital efficiency: does institutional ownership matter?

“…Prior studies have also argued that firms with higher liquidity are likely to invest more (new ventures) to enhance the efficiency of their IC resources (Shahveisi et al, 2017). Finally, prior studies have examined the role of IO, suggesting that institutional investors affect firms' strategic decisions and performance (Alshabibi, 2021;Paputungan et al, 2020;Soriya and Kumar, 2022). Table 1 shows further details regarding the defined set of variables of the current study.…”

The Performance of the Financial Sector During the Covid-19 Pandemic

“…Institutional ownership can eliminate agency issues and ensure management actions focus on enhancing financial success (Shleifer & Vishny, 1997). It can impact the company's strategic goals and decisions, including the use of IC to boost company performance (Paputungan et al, 2020). The institutional party has a bigger responsibility to control management behaviour so that it operates in line with the company's aims, including by strengthening IC management.…”