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Reconstruction of Financial Performance to Manage Gap between Value Added Intellectual Coefficient (VAICTM) and Value of Company in Banking Company Listed in Indonesia Stock Exchange

Author

Listed:
  • Yana Ermawati

    (Alumnus of Yapis Papua University, Indonesia)

  • Muhamad Yamin Noch

    (Yapis Papua University, Indonesia,)

  • Zakaria

    (Yapis Papua University, Indonesia,)

  • Arfan Ikhsan

    (Medan State University, Indonesia,)

  • Muammar Khaddafi

    (Universitas Malikussaleh, Indonesia.)

Abstract

This study aims to analyze the effect of value added intellectual coefficient (VAIC ) on value of company (market to book value [MtBV]) and financial performance (return on asset [ROA]) as mediating variable. This study used VAIC to measure the efficiency of three components i.e. value added capital employed, value added human capital, and structural capital value added (STVA). This study is a quantitative research using 20 banking companies listed in Indonesia Stock Exchange (BEI) as samples. Data were analyzed using path analysis with Analysis Moment of Structure program version 22. The results of this study indicate that the VAIC has positive and significant effect on financial performance (ROA), but it has immediate positive and non-significant effect on company value (MtBV). Furthermore, it can be proven that VAIC has indirect positive and significant effect on MtBV with ROA as a mediating variable.

Suggested Citation

  • Yana Ermawati & Muhamad Yamin Noch & Zakaria & Arfan Ikhsan & Muammar Khaddafi, 2017. "Reconstruction of Financial Performance to Manage Gap between Value Added Intellectual Coefficient (VAICTM) and Value of Company in Banking Company Listed in Indonesia Stock Exchange," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 537-549.
    • Handle: RePEc:eco:journ1:2017-04-64
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    References listed on IDEAS

    as
    1. Baruch Lev & Suresh Radhakrishnan, 2003. "The Measurement of Firm-Specific Organization Capital," NBER Working Papers 9581, National Bureau of Economic Research, Inc.
    2. Mohd. Heikal & Muammar Khaddafi & Ainatul Ummah, 2014. "Influence Analysis of Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM), Debt To Equity Ratio (DER), and current ratio (CR), Against Corporate Profit Growth In Automotive In Indo," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(12), pages 101-114, December.
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    More about this item

    Keywords

    Value Added Intellectual Coefficient; Financial Performance (Return on Asset); Company Value (Market to Book Value); Analysis Moment of Structure;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G3 - Financial Economics - - Corporate Finance and Governance
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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