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Financial performance mediates the relationship of intellectual capital to firm value in Indonesian banking companies

Author

Listed:
  • Sigit Hermawan

    (Accounting Department, Faculty of Business, Law, and Social Science, Universitas Muhammadiyah Sidoarjo, Indonesia)

  • Nisfatur Rokhmania

    (Accounting Department, Faculty of Business, Law, and Social Science, Universitas Muhammadiyah Sidoarjo, Indonesia)

  • Ruci Arizanda Rahayu

    (Accounting Department, Faculty of Business, Law, and Social Science, Universitas Muhammadiyah Sidoarjo, Indonesia)

  • Iffah Qonitah

    (Accounting Department, STIESIA Surabaya, Indonesia)

  • Ratna Nugraheni

    (Accounting Department, STIESIA Surabaya, Indonesia)

Abstract

This study was conducted to seek the consistency of the results of previous studies on the influence of Intellectual Capital, with the mediation of financial performance, on the value of banking firms. The quantitative research method used the PLS-SEM analysis technique by using the Smart PLS 3 application. The research subjects were 45 banks listed on the IDX for the period 2015-2019. The sampling technique used was purposive sampling. The results showed the consistency of the financial performance of banking companies with ROE and ROA indicators as mediating variables between Intellectual Capital as the dependent variable on the value of conventional banking companies using PER indicator as an independent variable. The type of mediation formed in the PLS-SEM equation model is partial mediation. Key Words:Intellectual Capital (VAIC), Financial Performance (ROA and ROE), Firm Value (PER)

Suggested Citation

  • Sigit Hermawan & Nisfatur Rokhmania & Ruci Arizanda Rahayu & Iffah Qonitah & Ratna Nugraheni, 2021. "Financial performance mediates the relationship of intellectual capital to firm value in Indonesian banking companies," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(6), pages 181-188, September.
    • Handle: RePEc:rbs:ijbrss:v:10:y:2021:i:6:p:181-188
    DOI: 10.20525/ijrbs.v10i6.1345
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    References listed on IDEAS

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    4. Muhammad Haris & HongXing Yao & Gulzara Tariq & Ali Malik & Hafiz Mustansar Javaid, 2019. "Intellectual Capital Performance and Profitability of Banks: Evidence from Pakistan," JRFM, MDPI, vol. 12(2), pages 1-26, April.
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    Cited by:

    1. Yisheng Xu & Miao Wu & Alex Ng, 2025. "What drives firms’ Belt and Road strategy, performance, and CSR?," SN Business & Economics, Springer, vol. 5(1), pages 1-34, January.

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