THE MYSTIQUE OF INTELLECTUAL CAPITAL: A SILENT EFFECT
Abstract
Intellectual capital has been a long-standing issue, about its existence and its influence on company performance, but it is not recorded in the company's financial statements. Its presence is not visible in the financial statements but affects the company's performance. The 3 (three) main components of intellectual capital are Value-added Capital Employed (VACA), Value-Added Human Capital (VAHU), and Structural Capital Value-Added (STVA). The objective of this study is to prove the impact of those intellectual capital’s components on financial performance. This study used a quantitative method. The population is banking companies listed on the Indonesia Stock Exchange which are classified as LQ 45. The sample is a banking company listed on the Indonesia Stock Exchange which is classified as LQ 45. The model that used to measure intellectual capital was the Pulic model, which is a measurement of intellectual capital performance made following the demands inflicted on financial performance. The results of the study showed that Value-added Capital used has a significant positive effect on financial performance, added value human capital has a significant negative effect on financial performance, and added value of structural capital has a significant positive effect on financial performance.
Keywords: Intellectual capital, VACA, VAHU, STVA, Pulic, performance
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