Intellectual capital and firm performance in Indonesia: the moderating role of corporate governance
by Amelia Limijaya; Yanthi Hutagaol-Martowidjojo; Elisabeth Hartanto
International Journal of Managerial and Financial Accounting (IJMFA), Vol. 13, No. 2, 2021

Abstract: This study examines the role of corporate governance (CG) to moderate the relationship between intellectual capital (IC) and firm performance (FP). The sample used in this study is of 348 Indonesian listed companies, excluding the financial sector, from 2014-2018, that results in a total of a 1,700 firm-year observation. Value added intellectual coefficient as a measure of IC turns out to be significant on FP; furthermore, the test of individual components of IC shows that tangible and human capital are still the dominant factors that influence FP, while firms, seemingly, have not optimised their structural capital. On the role of CG as the moderating variable, the result shows that audit committee independence (a proxy for CG) weakens the IC's impact on FP, indicating the ineffectiveness of audit committees in Indonesian public firms.

Online publication date: Thu, 23-Sep-2021

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