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Intellectual capital and firm performance in Indonesia: the moderating role of corporate governance

Author

Listed:
  • Amelia Limijaya
  • Yanthi Hutagaol-Martowidjojo
  • Elisabeth Hartanto

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.

Suggested Citation

  • Amelia Limijaya & Yanthi Hutagaol-Martowidjojo & Elisabeth Hartanto, 2021. "Intellectual capital and firm performance in Indonesia: the moderating role of corporate governance," International Journal of Managerial and Financial Accounting, Inderscience Enterprises Ltd, vol. 13(2), pages 159-182.
    • Handle: RePEc:ids:injmfa:v:13:y:2021:i:2:p:159-182
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    Cited by:

    1. Ping Sun & Sheng Ma & Xinxin Xu, 2022. "Multi-Factor Collaborative Governance of Controlling Shareholder Expropriation Behavior in Emerging Economies: A Perspective of Double Principal-Agent Conflicts," SAGE Open, , vol. 12(2), pages 21582440221, May.
    2. Ahmed Jinjiri Bala & Aminu Hassan & Muhammad Liman Muhammad, 2024. "Do board characteristics matter in the relationship between intellectual capital efficiency and firm value? Evidence from the Nigerian oil and gas downstream sector," Future Business Journal, Springer, vol. 10(1), pages 1-24, December.
    3. Ria Ria, 2023. "Determinant Factors of Corporate Governance on Company Performance: Mediating Role of Capital Structure," Sustainability, MDPI, vol. 15(3), pages 1-14, January.

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