IDEAS home Printed from https://ideas.repec.org/a/gam/jrisks/v12y2024i7p105-d1421034.html
   My bibliography  Save this article

Intellectual Capital, Political Connection, and Firm Performance: Exploring from Indonesia

Author

Listed:
  • Suham Cahyono

    (Department of Accountancy, Faculty of Economics and Business, Universitas Airlangga, Surabaya 60115, Indonesia)

  • Ardianto Ardianto

    (Department of Accountancy, Faculty of Economics and Business, Universitas Airlangga, Surabaya 60115, Indonesia)

Abstract

The relationship between intellectual capital and firm performance represents a critical facet of corporate governance, warranting comprehensive investigation. By analyzing data from 1151 non-financial firms listed on the Indonesia Stock Exchange over the period from 2018 to 2022, the authors utilize fixed effect regression analysis to test their hypothesis. This study’s findings reveal a positive and significant relationship between intellectual capital and firm performance. Additionally, the interaction model incorporating political connections yields statistically significant results, indicating that political connections can moderate the relationship between intellectual capital and firm performance. This study makes a substantial contribution to the literature, particularly by advancing the understanding of corporate governance through the lens of intellectual capital’s influence on firm performance. It offers both theoretical and practical insights into the Indonesian context, highlighting the moderating role of political connections. Notably, this study is the first to incorporate interaction models to assess the impact of political connections on this relationship.

Suggested Citation

  • Suham Cahyono & Ardianto Ardianto, 2024. "Intellectual Capital, Political Connection, and Firm Performance: Exploring from Indonesia," Risks, MDPI, vol. 12(7), pages 1-16, June.
    • Handle: RePEc:gam:jrisks:v:12:y:2024:i:7:p:105-:d:1421034
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-9091/12/7/105/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-9091/12/7/105/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Md. Jahidur Rahman & Hongyi Liu, 2023. "Intellectual capital and firm performance: the moderating effect of auditor characteristics," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 31(4), pages 522-558, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Patricia Ordóñez de Pablos, 2024. "Editorial: Human capital, leadership and creativity: understanding how intellectual capital reinforces competitiveness," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 21(1), pages 1-5.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jrisks:v:12:y:2024:i:7:p:105-:d:1421034. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.