Title:
EFFECT OF INTELLECTUAL CAPITAL ON FIRM VALUE

Authors:
Wumeiga Yunita, Dewi Prastiwi, Indonesia

Abstract:

Modernization has made business competition increasingly fierce, requiring companies to change their business methods to knowledge-based business. This change has resulted in business people being increasingly focused on prioritizing intangible assets as measured by intellectual capital in increasing company value. The goal of this research was to find out the impact of intellectual capital, as measured by VAIC, on firm value, as measured by PBV. The population of this study consists of manufacturing firms listed on the Indonesia Stock Exchange (BEI) between 2017 and 2019. In the study sample, 62 manufacturing companies were selected using the purposive sampling process. Simple linear regression analysis was used in the data analysis methodology. According to the findings of this report, intellectual capital has a significant impact on firm valuation. The implication of the results of this study is that investors will pay more attention to companies that have better intellectual capital. In other words, investors have considered the influence of intellectual property owned by the company in appreciating the market value of a company.