Financial Performance as Intervening Variable Affect of Intellectual Capital and Capital Structure on Firm Value in the Banking Sector

Abstract

Study purpose decide the affect intellectual capital and capital structur on value company, mediated by financial performance. This studies was conduct at banking firm on the Indonesia Stock Exchange in 2018-2021, where there were 46 company populations. Sampels taken use non-probability method sampling with purposive sampling tecnic, with criterias: 1) Banking firms publish consecutive financial reports, 2) Banking firms do not experience losses or negative profit during a certain period. There were 26 sample companies with 106 total observation companies. The technique analysis data use in this studies the path analysis method. Result of this study indicate intellectual capital, capital structure significant and positive impact on value firm, intellectual capital and capital structure has a positive and significant impact on financial performance, financial has significant and positive impact on value company, financial performance is could to mediate intellectual capital on value company, financial performance is could to mediate capital structure on banking company value on the Indonesia Stock Exchange in 2018-2021

The Effect of Good Corporate Governance and Capital Structure on Firm Value with Financial Performance as an Intervening Variable

“…Based on the results of the analysis above, significance value of X2 to Y is 0.000 < 0.05, which concludes that firm value can be influenced by capital structure positively and significantly. These results are suitable with the previously established hypothesis and are in line with the research of Suastyani, et al (2023), otherwise the research of Santosa et al (2022) that firm value can be influenced by capital structure negatively.…”

“…Company is sued have good performance to successfully convince the creditor, so that through a good corporate image, firm value will increase. This research is supported by Suastyani et al (2023) that firm value can be influenced by capital structure positively and significantly. But it contradicts research conducted by Santosa, et al (2022) that firm value can be influenced by capital structure negatively.…”

“…Due to the increase in debt, managers and shareholders work together in running the company's business, so that agency costs can be reduced and it is hoped that financial performance will increase. This research is supported by Suastyani et al (2023) that financial performance can be influenced by capital structure positively and significantly. But it contradicts research conducted by Rahmatin and Kristianti (2020) that financial performance cannot be influenced by capital structure.…”