The Effect of Intellectual Capital Performance on Company's Financial Performance

Pramathana, Bella; Widarjo, Wahyu

doi:10.22219/jrak.v10i3.13273

Cited by 5 publications

(4 citation statements)

References 13 publications

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“…Structural capital owned by the company has fulfilled the routine processes and company structure so as to support the efforts of employees in producing optimal intellectual performance and overall business performance. Pramathana and Widarjo (2020) also show that intellectual capital has a positive effect on the company's financial performance, meaning that the higher the company's intellectual capital performance, the higher the company's financial performance will be. Structural Capital (SC) and Capital Employed (CE) have the strongest influence on the company's financial performance in the current period.…”

Section: Effect Of Structural Capital (Hc) On Financial Performance (...mentioning

confidence: 91%

The Optimization Of Employee Stock Option Plan In Achieving Financial Performance

Asyik

2021

JRAK

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This study aimed to examine the effects of Intellectual Capital proxied by Human Capital (HC), Structural Capital (SC), and Customer Capital (CC) on the company's financial performance. It also investigated stock-based compensation's impact through employees' stock options programs and Intellectual Capital on the company's economic performance. The research samples were 36 companies that implemented the Employee Stock Option Plans as a compensation scheme during the 2016-2019 period. There were 144 observations. The partial test used multiple regression, while the moderating variable test applied residual analysis by examining the effect of deviation from a model. As a result, this study indicated that Human Capital partially influenced its financial performance. Stock-based compensation impacts the effect of Human Capital on financial performance. The shares ownership of employees with competencies, knowledge, skills, and behavior will support organizational structures' optimization in achieving work performance. Human capital is the source of innovation and knowledge that can solve a company’s problems. The implication of this research is that information about intellectual capital (Human Capital, Structural Capital, and Employee Capital) is needed by the company to determine the effectiveness of implementing the employee stock option plan in achieving better wealth in the future.

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Section: Effect Of Structural Capital (Hc) On Financial Performance (...mentioning

confidence: 91%

The Optimization Of Employee Stock Option Plan In Achieving Financial Performance

Asyik

2021

JRAK

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“…Oleh karena itu, mengukur profitabilitas perusahaan sangatlah penting dalam hubungan pemilik investor (Putra & Gantino, 2021). Hal ini sesuai dengan teori sinyal bahwa modal intelektual perusahaan harus dipandang sebagai sinyal baik pada investor, karena nilai aset tersebut mencerminkan nilai modal intelektual industri (Pramathana & Widarjo, 2020). Teori Keagenan (Agency Theory)…”

Section: Kajian Teoritis Teori Sinyal (Signalling Theory)unclassified

Pengaruh Modal Intelektual, Leverage Dan Kapasitas Operasi Terhadap Profitabilitas

Tita Yuliyanti,

Wulandari Agustiningsih

2023

JIEM

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Profitability is very important for the company for its survival. The purpose of this study is to determine determinants such as intellectual capital, leverage, and operating capacity on the profitability of consumer goods sector companies listed on the Indonesia Stock Exchange in 2018-2022. This type of research is causality and the research method uses quantitative methods obtained from secondary data. The statistical tool in this research uses STATA. The sampling technique used purposive sampling and obtained as many as 51 companies that met the criteria from a total population of 22 companies with a research period of 5 years, so that 110 sample data were obtained. This study utilizes a multiple linear regression analysis model. The results of the study show that intellectual capital, leverage, and operating capacity simultaneously affect profitability. Empirically, the role of intellectual capital, leverage and operating capacity in increasing the profitability of companies in the consumer goods subsector. Studies on the consumer goods sub-sector show that intellectual capital has a positive effect on profitability, leverage has a positive impact on profitability and operating capacity has a positive effect on profitability.

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“…ey found that physical and human capitals positively impact operating profit and net income, while SC has a negative impact. Pramathana and Widarjo [42], using the MVAIC model, measured IC performance of Indonesia firms and found that the impact of physical capital, HC, and SC is positive, while the impact of RC is negative. In a study on Chinese manufacturing sector, Xu and Liu [43] reported a high significant correlation of IC with corporate profitability and return.…”

Section: Ic Definition and Measurement Many Researchers Havementioning

confidence: 99%

Exploring the Nonlinear Effect of Intellectual Capital on Financial Performance: Evidence from Listed Shipping Companies in China

Zhang

2021

Complexity

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Intellectual capital (IC) is reckoned as a significant driving force of competitive advantage and financial sustainability of any organization. The study’s objective is to explore the nonlinear effect of IC and its components on financial performance (FP) of China’s listed shipping companies over a six-year period (2014–2019). The modified Value Added Intellectual Coefficient (MVAIC) model is used to systematically assess IC. The empirical results show an inverted U-shaped relationship between the aggregate IC and FP (measured through return on assets). Regarding IC components, human, relational, and innovation capitals have an inverted U-shaped relationship with FP, while the quadratic relationship between structural capital and FP is not significant. In addition, physical capital has a U-shaped relationship with FP. This study will offer some new insights for corporate managers to improve firms’ FP by effectively utilizing their IC resources.

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The Effect of Intellectual Capital Performance on Company's Financial Performance

Cited by 5 publications

References 13 publications

The Optimization Of Employee Stock Option Plan In Achieving Financial Performance

The Optimization Of Employee Stock Option Plan In Achieving Financial Performance

Pengaruh Modal Intelektual, Leverage Dan Kapasitas Operasi Terhadap Profitabilitas

Exploring the Nonlinear Effect of Intellectual Capital on Financial Performance: Evidence from Listed Shipping Companies in China

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