This study aims to empirically examine the influence of intellectual capital towards company value and also its influence while being moderated by institutional ownership. This study uses purposive sampling to determine samples from manufacturing companies listed in Indonesia Stock Exchange during the year of 2014–2018. The total sample obtained in this study is 301 from the 720 population of data throughout the research year. Data analysis techniques use multiple regression and moderated regression analysis (MRA) methods. The results of this study show that Intellectual Capital has a positive significant effect on company value while institutional ownership does not have a significant effect on moderating the influence of intellectual capital towards company value. The practical implication of this study is to provide information to managers or owners of public manufacturing companies and investors about the importance of intangible assets investment like intellectual capital as the competitive strategies to achieve more optimal company value, as well as for regulator to make clear regulations about the disclosures of intangible assets.
Abbasi, M., Kalantari, E., & Abbasi, H. (2012). Impact of Corporate Governance Mechanisms on Firm Value Evidence from the Food Industry of Iran Corporate Governance. Journal of Basic and AApplied Scientific Research, 2(5), 4712–4721.
Abukosim, Mukhtaruddin, Ferina, I. S., & Nurcahaya, C. (2014). Ownership Structure and Firm Values: Empirical Study on Indonesia Manufacturing Listed Companies. International Refereed Research Journal, V(4), 1–14.
Alfaraih, M., Alanezi, F., & Almujamed, H. (2012). The Influence of Institutional and Government Ownership on Firm Performance : Evidence from Kuwait. International Business Research, 5(10), 192–200. https://doi.org/10.5539/ibr.v5n10p192
Alipour, M. (2012). The effect of intellectual capital on firm performance: An investigation of Iran insurance companies. Measuring Business Excellence, 16(1), 53–66. https://doi.org/10.1108/13683041211204671
Andriessen, D. (2004). IC valuation and measurement: classifying the state of the art. Journal of Intellectual Capital, 5(2), 230–242. https://doi.org/10.1108/14691930410533669
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Bathala, C. T., Moon, K. P., & Rao, R. P. (2013). Policy , Ownership , Managerial Impact of Institutional Holdings : An Perspective. Financial Management, 23(3), 38–50. https://doi.org/http://dx.doi.org/10.2307/3665620
Bchini, B. (2015). Intellectual Capital and Value Creation in the Tunisian Manufacturing Companies. Procedia Economics and Finance, 23(October 2014), 783–791. https://doi.org/10.1016/s2212-5671(15)00443-8
Berzkalne, I., & Zelgalve, E. (2014). Intellectual capital and company value. Procedia - Social and Behavioral Sciences, 110, 887–896. https://doi.org/10.1016/j.sbspro.2013.12.934
Chaganti, R., & Damanpour, F. (1991). Institutional ownership, capital structure, and firm performance. Strategic Management Journal, 12, 479–491. https://doi.org/https://doi.org/10.1002/smj.4250120702
Chen, J., Blenman, L., & Chen, D.-H. (2014). Does Institutional Ownership Create Values ? The New Zealand Case. Quarterly Journal of Finance and Accounting, 47(4), 109–124.
Chung, K. H., & Zhang, H. (2011). Corporate governance and institutional ownership. Journal of Financial and Quantitative Analysis, 46(1), 247–273. https://doi.org/10.1017/S0022109010000682
Clarke, M., Seng, D., & Whiting, R. H. (2011). Intellectual capital and firm performance in Australia. Journal of Intellectual Capital, 12(4), 505–530. https://doi.org/10.1108/14691931111181706
Coffee, J. C. (1991). Liquidity Versus Control : The Institutional Investor as Corporate Monitor. Columbia Law Review, 91(6), 1277–1368. Retrieved from https://scholarship.law.columbia.edu/faculty_scholarship/28/
Damayanti, N. P. W. P., & Suartana, I. W. (2014). Pengaruh Kepemilikan Manajerial dan Kepemilikan Institusional pada Nilai Perusahaan. E-Jurnal Akuntansi Universitas Udayana, 9(3), 575–590.
Dang, C., Li, Z. (Frank), & Yang, C. (2018). Measuring firm size in empirical corporate finance. Journal of Banking and Finance, 86, 159–176. https://doi.org/10.1016/j.jbankfin.2017.09.006
Dumay, J. (2016). A critical reflection on the future of intellectual capital: from reporting to disclosure. Journal of Intellectual Capital, 17(1), 168–184. https://doi.org/10.1108/JIC-08-2015-0072
Elyasiani, E., & Jia, J. (2010). Distribution of institutional ownership and corporate firm performance. Journal of Banking and Finance, 34(3), 606–620. https://doi.org/10.1016/j.jbankfin.2009.08.018
Fajaryani, A. (2015). Analisis Faktor-Faktor yang Mempengaruhi Integritas Laporan Keuangan (Studi Empiris pada Perusahaan Pertambangan yang Terdaftar di Bursa Efek Indonesia Periode 2008-2013). Jurnal Nominal, IV(1), 67–82. https://doi.org/10.21831/nominal.v4i1.6888
Feimianti, E., & Anantadjaya, S. P. (2015). Value Creation of Intellectual Capital : Financial Performance Analyses in Indonesian Publicly- Listed Consumer Goods Industry. Review of Integrative Business & Economics Research, 3(1), 99–113.
Gedajlovic, E., & Shapiro, D. M. (2002). Ownership Structure and Firm Profitability in Japan. Academy of Management Journal, 45(2), 565–575.
Guthrie, J., Ricceri, F., & Dumay, J. (2012). Reflections and projections : A decade of Intellectual Capital Accounting. The British Accounting Review, 44(2), 68–82. https://doi.org/10.1016/j.bar.2012.03.004
Hejazi, R., Ghanbari, M., & Alipour, M. (2016). Intellectual, Human and Structural Capital Effects on Firm Performance as Measured by Tobin’s Q. Knowledge and Process Management, 23(4), 259–273. https://doi.org/10.1002/kpm.1529
Husnah, H., Subroto, B., Aisjah, S., & Djumahir. (2013). Intangible Assets, Competitive Strategy And Financial Performance: Study On Rattan SMEs In Palu City Of Central Sulawesi (Indonesia). IOSR Journal of Business and Management, 7(4), 14–27. https://doi.org/10.9790/487x-0741427
Iranmahd, M., Moeinaddin, M., Shahmoradi, N., & Heyrani, F. (2014). The Effect of Intellectual Capital on Cost of Finance and Firm Value. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(2), 1–8. https://doi.org/10.6007/IJARAFMS/v4-i2/724
Ismail, K. N. I. K., & Karem, M. A. (2011). Intellectual Capital and the Financial Performance of Banks in Bahrain Intellectual Capital and the Financial Performance of Banks in. Journal of Business Management and Accounting, 1(1), 63–77.
Jensen, M. C., & Meckling, W. H. (1976). Theory of The Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3, 305–360.
Kusumawati, E., & Setiawan, A. (2019). The Effect of Managerial Ownership , Institutional Ownership , Company Growth , Liquidity , and Profitability on Company Value. Jurnal Riset Akuntansi Dan Keuangan Indonesia, 4(2), 36–46.
Martini, R., Riama, L. V., Wardhani, R. S., & Febriani, M. (2016). Effect of Intellectual Capital To Return on Equity (Study on Consumer Goods Industry Listed in Indonesia Stock Exchange). International Journal of Business, Accounting and Management, 1(2), 2527–3531. Retrieved from www.doarj.orgwww.doarj.org
Mehralian, G., Rajabzadeh, A., & Rasekh, H. R. (2012). Intellectual capital and corporate performance in Iranian pharmaceutical industry. Journal of Intellectual Capital, 13(1), 138–158. https://doi.org/10.1108/14691931211196259
Mollah, S., & Farooque, O. Al. (2012). Ownership structure, corporate governance and firm performance Evidence from an African Emerging Market. Studies in Economics and Finance, 29(4), 301–319. https://doi.org/10.1108/10867371211266937
Neubaum, D. O., & Zahra, S. A. (2006). Institutional Ownership and Corporate Social Performance: The Moderating Effects of Investment Horizon, Activism, and Coordination. Journal of Management, 32(1), 108–131. https://doi.org/10.1177/0149206305277797
Nimtrakoon, S. (2015). The relationship between intellectual capital, firms’ market value and financial performance: Empirical evidence from the ASEAN. Journal of Intellectual Capital, 16(3), 587–618. https://doi.org/10.1108/JIC-09-2014-0104
Nuryaman. (2015). The Influence of Intellectual Capital on The Firm ’ s Value with The Financial Performance as Intervening Variable. Procedia - Social and Behavioral Sciences, 211, 292–298. https://doi.org/10.1016/j.sbspro.2015.11.037
Petta, B. C., & Tarigan, J. (2015). Pengaruh Kepemilikan Institusional terhadap Kinerja Keuangan Melalui Struktur Modal sebagai Variabel Intervening pada Perusahaan Manufaktur yang Terdaftar dalam Bursa Efek Indonesia. Business Accounting Review, 5(2), 625–634.
Ping, Z., & Wing, A. C. W. (2011). Corporate Governance : A Summary Review on Different Theory Approaches. International Research Journal of Finance and Economics, (68), 7–13.
Pulic, A. (1998). Measuring the Performance of Intellectual Potential in Knowledge Economy. Presented in 1998 at the 2nd McMaster World Congress on Measuring and Managing Intellectual Capital by the Austrian Team for Intellectual Potential, 1–20.
Rini, I. S., Sutrisno, T., & Nurkholis. (2017). The Effect of Ownership Structure on Firm Value with Investment Decision as Intervening Variable (Empirical Study of the Listed Companies in Indonesia Stock Exchange Period 2008-2014). International Journal of Social and Local Economic Governance, 3(2), 99–110.
Ruiz-mallorquí, M. V., & Santana-martín, D. J. (2011). Dominant institutional owners and firm value. Journal of Banking & Finance, 35, 118–129. https://doi.org/10.1016/j.jbankfin.2010.07.020
Schiuma, G., Lerro, A., & Sanitate, D. (2008). The intellectual capital dimensions of Ducati’s turnaround: Exploring knowledge assets grounding a change management program. International Journal of Innovation Management, 12(2), 161–193. https://doi.org/10.1142/S1363919608001935
Selvam, M., Gayathri, J., Vasanth, V., Lingaraja, K., & Marxiaoli, S. (2016). Determinants of Firm Performance: A Subjective Model. International Journal of Social Science Studies, 4(7), 90–100. https://doi.org/10.11114/ijsss.v4i7.1662
Shaban, M., & Kavida, V. (2015). Intellectual Capital , Financial Performance and Market Valuation : An Empirical Investigation of Information Technology Industry in India. Asia-Pacific Journal of Management Research and Innovation, 9(1), 55–62. https://doi.org/10.1177/2319510X13483512
Sharabati, A. A., Jawad, S. N., & Bontis, N. (2010). Intellectual capital and business performance in the pharmaceutical sector of Jordan. Management Decision, 48(1), 105–131. https://doi.org/10.1108/00251741011014481
Shleifer, A., & Vishny, R. W. (1997). A Survey of Corporate Governance. The Journal of Finance, 52(2), 737–783. https://doi.org/10.1111/j.1540-6261.1997.tb04820.x
Subaida, I., Nurkholis, N., & Mardiati, E. (2018). Effect of Intellectual Capital and Intellectual Capital Disclosure on Firm Value. Jurnal Aplikasi Manajemen, 16(1), 125–135. https://doi.org/10.21776/ub.jam.2018.016.01.15
Sujoko, & Soebiantoro, U. (2007). Pengaruh Struktur Kepemilikan Saham , Leverage , Faktor Intern Dan Faktor Ekstern Terhadap Nilai Perusahaan (Studi empirik pada perusahaan manufaktur dan non manufaktur di Bursa Efek Jakarta). Jurusan Ekonomi Manajemen, 9(1), 41–48.
Susilowati, Y., Puspitasari, E., & Yuseno, A. (2017). The Influence of Institutional Ownership, Independent Commissioner, Audit Committee, Firm Size and Leverage to Integrity of Financial Statement on Manufacturers Listed in Indonesia Stock Exchange. The Sixth International Conference on Entrepreneurship and Business Management, 550–554. Hanoi.
Tahir, S. H., Saleem, M., & Arshad, H. (2015). Institutional Ownership and Corporate Value : Evidence From Karachi Stock Exchange ( KSE ) 30-Index Pakistan. Praktični Menadžment, 6(1), 41–49.
Thanatawee, Y. (2014). Institutional Ownership and Firm Value in Thailand. Asian Journal of Business and Accounting, 7(2), 1–22.
Tsai, H., & Gu, Z. (2007). The relationship between institutional ownership and casino firm performance. Hospitality Management, 26, 517–530. https://doi.org/10.1016/j.ijhm.2006.02.003
Vazifehdoust, H., Khajenasir, M. R., & Karami, H. (2014). A study on the effect of intellectual capital on firm performance: Evidence from Tehran Stock Exchange. Management Science Letters, 4, 559-–566.
Widyati, M. F. (2013). Pengaruh Dewan Direksi, Komisaris Independen, Komite Audit, Kepemilikan Manajerial dan Kepemilikan Institusional terhadap Kinerja Keuangan. Jurnal Ilmu Manajemen, 1(1), 234–249.
Zeghal, D., & Maaloul, A. (2010). Analysing value added as an Analysing indicator of intellectual capital and its consequences on company. Journal of Intellectual Capital, 11(1), 39–60. https://doi.org/10.1108/14691931011013325
Authors contributing to IJRBS agree to publish their articles under the Creative Commons Attribution- 4.0 NC license, allowing third parties to share their work (copy, distribute, transmit) and to adapt it, under the condition that the authors are given credit, that the work is not used for commercial purposes, and that in the event of reuse or distribution, the terms of this license are made clear. Authors retain copyright of their work, with first publication rights granted to IJRBS. However, authors are required to transfer copyrights associated with commercial use to the Publisher. The authors agree to the terms of this Copyright Notice, which will apply to this submission if and when it is published by this journal
Submission of an article implies that the work described has not been published previously( exceptin the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, it will not be published elsewhere in the same form, in English or in any other languages, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication