Title: Intellectual capital performance model and comprehensive financial performance: evidence from firms listed in the Jakarta Islamic Index

Authors: Ihyaul Ulum; Gatot Soepriyanto

Addresses: Accounting Department, University of Muhammadiyah Malang, Jl. Raya Tlogomas 246 Malang, East Java, Indonesia ' Accounting Department, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, 11480, Indonesia

Abstract: The objective of this study is to provide empirical evidence of the impact of intellectual capital performance (ICP) on companies' financial performance. The study employs three measures of ICP (VAIC, MVAIC, and IC-Index) and six different proxies for financial performance. Using Indonesian public companies which are listed in the Jakarta Islamic Index (JII) for the period of December 2017-May 2018, we found that when tested separately, VAIC and MVAIC both have positive effects on financial performance, while IC-Index does not influence the firms' financial outcome. By incorporating those three ICP measures in one model, we discovered similar results, where VAIC and MVAIC have a positive influence on the financial outcome, but not IC-Index. We contributed to the discussion that VAIC and MVAIC are important measures of intellectual capital performance, especially in the context of firms operating with Islamic measures in Indonesia.

Keywords: intellectual capital; intellectual capital performance; ICP; IC-Index; MVAIC; VAIC; Jakarta Islamic Index; JII.

DOI: 10.1504/IJLIC.2021.118399

International Journal of Learning and Intellectual Capital, 2021 Vol.18 No.4, pp.352 - 364

Received: 19 Aug 2019
Accepted: 13 Oct 2020
Published online: 25 Oct 2021 *

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